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if average demand for an item is 20 units per day, safety stock is 50 units, and lead time is four days, the rop will be:

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If average demand for an item is 20 units per day, safety stock is 50 units, and lead time is four days, the ROP will be 130.

What do you mean by the average demand?

The average demand for the month is the ratio of total kilowatt-hours consumed to total hours in the month.

To compute demand average, add the entire sales volume in your time frame and divide it by the number of purchasing days.

Maximum Demand refers to a customer's highest demand during a given time period.

Several factors influence whether a good's demand rises or falls. Price, perceived quality, advertising expenditure, consumer wealth, consumer confidence, and changes in taste and trend are all factors.

Given,

Units per day = 20

Stock = 50 units

Days = 4

Here,

ROP = 20 × 4 + 50

ROP = 130

Therefore, if average demand for an item is 20 units per day, safety stock is 50 units, and lead time is four days, the ROP will be 130.

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