How to calculate a Reorder Point (ROP) in Inventory Management

Reorder Point (ROP) and Safety Stock calculation example. This quick video shows how to calculate a reorder point and when to implement it within inventory management ordering systems. Problems taken from the Pearson Textbook "Operations Management, Sustainability and Supply Chain" 13th edition by Jay Heizer, Barry Render and Chuck Munson. Chapter 12 on Inventory Management.
At www.operationsuniversity.org you can get Free copies of this Slide Deck and other Chapter Outlines. Practice Problems & Homework Support (step by step guides how to complete the quantitative questions + MS Excel templates) are available for a small fee.
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[@ayaelkhlifi2160]

you explain in a very good way, I have a final in 1 week and you saved me in the Inventory management chapter. You are making our life easier

[@OperationsAndSupplyChain]

Hi Aya, thank you for the feedback. I am glad you are finding these videos helpful as you study for your final exam. On www.OperationsUniversity.Org you can find some Practice Problems for Ch12 (Inventory Management) that you can use as well.

[@voiceofparliament1760]

Thank you so much for this ,I get more clarity

[@OperationsAndSupplyChain]

Hi Santosh, you are welcome! Thanks for watching our videos. I'm glad we were able to help.

[@sketchin1009]

Awesome, thank you!

[@OperationsAndSupplyChain]

You’re very welcome! Glad it was helpful.

[@ahsidladnom8730]

Thank you for this easy explanation sir.

[@OperationsAndSupplyChain]

Hi Ahsid, you are welcome! Thanks for the feedback. I am glad you found the explanation easy to understand :)

[@namuduribhaskar3210]

your videos are very helpful sir

[@OperationsAndSupplyChain]

Hi Namuduri, thank you for the feedback! I'm glad you are finding them helpful.

[@christyhokayem]

Really helpful,thank you.

[@OperationsAndSupplyChain]

Glad to hear it! Thanks for watching Christy!

[@gigyroma654]

Thank you.

[@OperationsAndSupplyChain]

You're welcome! Thanks for watching.

[@linusmuhanguzi5453]

Awesome

[@OperationsAndSupplyChain]

Thanks Linus! Glad you found the video useful.