Working out reorder levels

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:29AM in AAT student discussion
Help! I am trying to get my head around stock equations and i thought i had it right and now i'm not so sure! My Osbourne textbook says that the reorder level for stock is (usage x lead time) + minimum level, but the BPP book i had from last year says that it is only usage x lead time. Which is correct? I would have thoguht the osbourne one, but what do i know?!<BR>Is there any easy way of remembering all these different equations?<BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Working out reorder levels

    I think the Osbourne formula allows for buffer stock in addition to replacing used stock. BPP is correct in a perfect world, Osbourne is a little more practical.

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