Operations
Days of cover at the trigger
Sanity check: the trigger should represent the lead time plus the chosen buffer, no more and no less.
The Formula
cover = reorder point / daily usage
Sanity check: the trigger should represent the lead time plus the chosen buffer, no more and no less.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| C | Days of cover | days | Days the reorder point quantity will last. |
| ROP | Reorder point | units | Stock level that triggers the next order. |
| d | Daily usage | units/day | Average units consumed per day. |
What Each Symbol Means
Cdays
Days of cover
Days the reorder point quantity will last.
ROPunits
Reorder point
Stock level that triggers the next order.
dunits/day
Daily usage
Average units consumed per day.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate a reorder point page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate A Reorder Point, filed under Business. Every number the guide produces comes from substituting into this one line.