MANAGEMENT

Detailed explanation-1: -Reorder Quantity = ADU x ALT. Once you multiply ADU and ALT, you’ll know the amount of inventory you need to reorder. Let’s look at an example of how to calculate reorder quantity for an individual product: ADU = 10 units.

Detailed explanation-2: -Solution(By Examveda Team) Re-order level is calculated as Maximum consumption x Maximum re-order period. To calculate the reorder level, multiply the average daily usage rate by the lead time in days for an inventory item.

Detailed explanation-3: -A reorder level, also referred to as a reorder point refers to the inventory level at which a seller places an order with its suppliers to replenish the stock of a certain product.