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Python Reorder Point Calculation

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0% found this document useful (0 votes)
9 views2 pages

Python Reorder Point Calculation

Uploaded by

shaRUKH
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Reorder code python

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Python
Execution output
import numpy as np
from [Link] import norm

def reorder_point(avg_daily_demand, lead_time, z_score,


std_dev_demand=None):
"""
Calculates the reorder point.

Parameters:
avg_daily_demand: Average daily demand
lead_time: Lead time in days
z_score: Z-score for desired service level
std_dev_demand: Standard deviation of daily demand (optional)

Returns:
Reorder point
"""

lead_time_demand = avg_daily_demand * lead_time

if std_dev_demand is not None:


safety_stock = z_score * std_dev_demand * [Link](lead_time)
else:
safety_stock = 0

return lead_time_demand + safety_stock

# Example usage
avg_daily_demand = 10
lead_time = 7
z_score = 1.645 # 95% service level
std_dev_demand = 2

rop = reorder_point(avg_daily_demand, lead_time, z_score, std_dev_demand)


print("Reorder Point:", rop)
Reorder Point: 78.70452181340251

Explanation:
1. 1. Imports:
 numpy for mathematical operations.
 [Link] for the normal distribution's inverse cumulative
distribution function ([Link]).
2. 2. reorder_point function:
 Takes the following arguments:
 avg_daily_demand: Average daily demand.

 lead_time: Lead time in days.

 z_score: Z-score corresponding to the desired service level (e.g., 1.645 for
a 95% service level).
 std_dev_demand: Standard deviation of daily demand (optional). If not
provided, safety stock is assumed to be 0.
 Calculates lead_time_demand by
multiplying avg_daily_demand with lead_time.
 If std_dev_demand is provided, calculates safety_stock using the
formula: z_score * std_dev_demand * sqrt(lead_time) .
 Returns the reorder_point as the sum
of lead_time_demand and safety_stock.
3. 3. Example usage:
 Sets example values for avg_daily_demand, lead_time, z_score,
and std_dev_demand.
 Calls the reorder_point function with these values to calculate the
reorder point.
 Prints the calculated reorder point.

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