Calculate the order size and reorder point that minimizes the total cost of ordering, holding and shortage costs, and optimizes product availability.
This application calculates the economic order quantity (EOQ) given a demand estimate, and the reorder point (ROP) given the lead-time. If the lead-time is uncertain, evaluate the Stock-out Risk (service level) and reorder points over the full range of lead times.
1. Enter the average demand, the costs, and the stock-out risk (=1 – Service Level),
2. Indicate the distribution of the lead-time, and range parameters
3. At any point, simply touch the application background to calculate
4. The EOQ and ROP are displayed at the base of the screen.
5. Click ‘Help’ for brief instructions and some important parameter definitions.
Develop the most efficient inventory for your operational needs
Inventory ensures that customers can obtain needed goods and services at the right time, in the right quantity, and at a satisfactory price. Managing inventory is vital, and minimizing the cost of inventory has become a common goal for companies.
Lean Inventory is an analytical app that supports the development of Lean inventory initiatives, and the setting of key inventory management parameters like Economic order quantity(EOQ), Safety stock, Reorder point (ROP), Stock-out Risk (service level), Min / Max replenishment values.
The user friendly, explicit interface includes ‘Quick Help’, and data validation to eliminate unconstrained results.
Immediately applicable for manufacturing MRO applications, and just-in-time (JIT) initiatives.