How Do You Calculate The Following Inventory Levels?

1.	How Do You Calculate The Following Inventory Levels?
Answer» Re-order level = Maximum LEAD Time x Minimum Lead Time Maximum level = Reorder Level + Reorder QUANTITY – (Minimum Usage x Minimum Lead Time) Minimum level = Reorder Level – (Normal Usage x Normal Lead Time) Danger level = Maximum Level x Lead time for EMERGENCY PURCHASES

Answer»

Re-order level = Maximum LEAD Time x Minimum Lead Time
Maximum level = Reorder Level + Reorder QUANTITY – (Minimum Usage x Minimum Lead Time)
Minimum level = Reorder Level – (Normal Usage x Normal Lead Time)
Danger level = Maximum Level x Lead time for EMERGENCY PURCHASES

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