Module 9 : Basic Inventory Principles

DETERMINATION OF REORDER POINT - II

Higher safety stock

A class items have relatively low service levels (0.8 or so)
-Lower safety stocks
-Tighter control & efficient expediting
B class items handled routinely with service levels of 0.95 or so
C class items should be present in ample supply, minimum records, controls, procedure very high service levels (0.95 to 0.98)
Page 1 - 10
Prof.S.G.Deshmukh & Prof.Arun Kanda