Supply Chain and Inventory Management – Reorder Point Calculator

 

Notes:

• Problem Solved: Computes the optimal reorder point based on demand rate and lead time.

• Benefits: Ensures inventory is replenished just in time to meet demand without excess stock.

• Adoption: Can be automated as part of an inventory planning module.

Python Code:

class ReorderPointCalculator:

    def __init__(self, daily_demand, lead_time_days, safety_stock):

        self.daily_demand = daily_demand

        self.lead_time_days = lead_time_days

        self.safety_stock = safety_stock

    def calculate_reorder_point(self):

        return (self.daily_demand * self.lead_time_days) + self.safety_stock

# Example values

daily_demand = 30  # units per day

lead_time_days = 7

safety_stock = 100

rpc = ReorderPointCalculator(daily_demand, lead_time_days, safety_stock)

reorder_point = rpc.calculate_reorder_point()

print(f"Reorder Point: {reorder_point} units")