Input Parameters
Reorder Level
200
Maximum Stock
400
Key Concepts
Stock Control Definitions
Buffer Stock
Minimum level held to prevent stockouts if demand increases or suppliers delay
Reorder Level
Stock level at which a new order is placed (Usage × Lead Time + Buffer)
Lead Time
Time between placing an order and receiving stock
Reorder Quantity
Fixed amount ordered each time (based on Economic Order Quantity or supplier terms)
Maximum Stock
Reorder Quantity + Buffer Stock (storage capacity constraint)