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Sir could u explain the derivation of maximum stock level formula i.e - ROL+ROQ-(Min consumption *min lead time).
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Say ROL is 100 ROQ is 50 Min consumption is 5 Min lead time is 5 So once order is placed at ROL of 100 for 50 units, by the time order arrives (in fastest possible time with min consumption), 5x5 units would be consumed. So max stock level would be 100 + 50 - 25 = 125
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