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how do i calculate the order quantity?

  1. #1
    cfo guy
    Guest

    how do i calculate the order quantity?

    given a beginning inventory level, a desired minimum safety inventory level
    and a lead time from order to receipt of inventory, how do i calculate by
    month the quantity of inventory to order for each item?

  2. #2
    Fred
    Guest

    Re: how do i calculate the order quantity?

    It would certainly be helpful to know the pending orders for finished
    product per month. With this advanced information, one could then
    assume that the current inventory level, less the build quantity (minus
    some percentage for fallout), and less the safety quantity would tell
    you what was required to be ordered to maintain the safety level. There
    are some vendors that will work with you to supply various quantities
    when necessary to help maintain your safety level, but obviously, they
    need to know projected production levels.
    If you're looking for some formula or other help in resolving this
    problem, please respond directly to my e-mail. The current problem
    description is rather vague!


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