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To calculate the reorder level, multiply the average daily usage rate by the lead time in days for an inventory item. For example, Wilberforce Products experiences average daily usage of its black widget of 100 units, and the lead time for procuring new units is eight days.
Maximum Stock Level formula is given below. Reorder level of Inventory = 20,000. Reorder Quantity (ESQ) = 15,000. Minimum usage of inventory = 5000. Minimum lead time for arrival = 2 weeks. Maximum level = Reorder level + reorder Quantity- (minimum usage x minimum lead time) =20,000 + 15,000- (5000 x2) =35,000-10000.
Concept of Maximum order quantity With the maximum order quantity limitation, sellers while adding a product can specify a maximum order quantity (MOQ) against it i.e. the maximum amount of material that can be ordered at any given time by the buyer.
Maximum Stock Level formula is given below. Reorder level of Inventory = 20,000. Reorder Quantity (ESQ) = 15,000. Minimum usage of inventory = 5000. Minimum lead time for arrival = 2 weeks. Maximum level = Reorder level + reorder Quantity- (minimum usage x minimum lead time) =20,000 + 15,000- (5000 x2) =35,000-10000.
Go to your 'Manage Inventory'. Click the 'Edit' button for the product in question. On the 'Offers' tab, scroll to the bottom, you should see 'Max Order Quantity'. Set the number there, and then click the 'Save and finish' button.
Sellers limit the quantity of the products a single consumer can purchase within a short period of time. But you can purchase the same product if you want after 30 days if required. There is only limit on purchase if you try and buy in bulk in a single purchase.
(i) Maximum Consumption = 200 units per day. (ii) Minimum Consumption = 120 units per day. (ii) Normal Consumption =160 units per day. (iv) Reorder period = 10-15 days.
[2] Reorder Period OR Delivery Period OR Lead Time :- It represents the time gap involves between placement of order & Actual Receiving of the Delivery. Such Period is again divided into Maximum Period, Minimum Period, Average Period & Emergency Period.
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