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1. Intro to Manufacturing Lean Tools 1 Order Point Calculation Order Point = (LT x Avg) + (StdDev x ServFactor)
LT = Lead time to replenish shelf
Avg = Average demand per period (typically per week)
StdDev = Standard deviation in the demand per period (this measures how variable the demand is compared to the average)
ServFactor = Service Factor per table below (what percentage of the time should a customer be able to get the desired quantity from the shelf)
Service Level Service Factor