ERP & MRP Planning worked example

Manufacturing Reorder Point with lead-time demand of 410 units: a worked example

This worked example runs the manufacturing reorder point numbers for a tougher week than the baseline: lead-time demand of 410 units instead of the typical 820 units. Build a manufacturing reorder point from lead-time demand, safety stock, minimum order reserve, and quality-hold reserve.

The inputs for this scenario

  • Lead-time demand: 410 units (the input this scenario stresses; the baseline uses 820)
  • Safety stock quantity: 180 units (held at the documented default)
  • Minimum order or pack reserve: 100 units (held at the documented default)
  • Quality hold or allocation reserve: 60 units (held at the documented default)

Working through the calculation

  • The calculation starts from the formula this tool documents: Manufacturing reorder point = lead-time demand + safety stock + order-policy reserve + quality/allocation reserve.
  • Manufacturing reorder point works out to 750 units at these inputs, and this is the headline figure for the scenario.
  • Lead-time demand works out to 410 units at these inputs.
  • Safety stock quantity works out to 180 units at these inputs.
  • Policy and quality reserves works out to 160 units at these inputs.

How this compares with the baseline

  • Against the tool's baseline example, where lead-time demand sits at 820 units and the headline result is 1,160 units, this scenario comes in 35.34% below the baseline at 750 units.
  • Use it when configuring MRP reorder points for purchased or manufactured components where holds, allocations, or pack rules tie up part of nominal stock. A result at this level usually justifies acting on the stressed input before touching anything else, because every other figure in the table is downstream of it.

Results at a glance

  • Manufacturing reorder point: 750 units (headline result)
  • Lead-time demand: 410 units
  • Safety stock quantity: 180 units
  • Policy and quality reserves: 160 units

Run it with your numbers

  • To rerun this with your own numbers, open the live Manufacturing Reorder Point calculator, set lead-time demand to your actual value, and adjust the remaining inputs to match your operation.

Last reviewed 2026-05-12.