The following describes how you calculate the ROP for items.
Prerequisites
Assume the following applies:
Annual forecast = 50,000 |
Lead time = 10 days |
Number of workdays/year = 225 days |
No Administration time and Transport time are defined |
- Select the Calculate re-order point menu item.
- You access Re-order point calculation. Click OK to run the calculation. (Note: If Interactive process is set to YES in Work with DC1 user profiles for your profile, you can press F2 to run the calculation interactively).
Calculation/Check value
When the system has calculated the ROP, you can view the value in the Order point field in the Item file, Inventory information panel.
The formula for ROP is:
(Annual forecast * Planning time) / Number of workdays/year |
According to the above prerequisites: (50000 * 10) / 225 = 2,222.22
The ROP is 2,222.22 PCS.