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if average daily demand for an item is 15 units safety stock is 55 units and lead time is three days the rop will be

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tutorAnne

Answer:ROP= Reorder Point = 100

Explanation:

Reorder Point (ROP), also called  reorder level, is the level of inventory which causes that the stock of a business is replenished. When a stock is being utilized and reaches a set amount  by a firm, it holds that such item be reordered or replenished.

ROP= Reorder Point =  (Average Daily Usage x Average Lead Time in Days) + Safety Stock

=(15 x 3) + 55 = 100

This means that when the inventory level of  stock falls to 100, the commodity or item should be reordered.

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