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RIP Entitlement

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  • #39507

    ROSS
    Member

    Hi all,
       Do someone has experience on RIP entitlement calculation? I have a formula on hand as beloiwing: RIP entitlement=2.33*Stdev(historical actual monthly usage)*sqrt(material purchase leadtime). I know 2.33*stdev(usage) means 99% variance, but what is the meaning of sqrt(lead time)?
      Tks
    Tony
     
     
     

    0
    #120408

    ROSS
    Member

    Experts,
         Need help!
    BR!
    Tony

    0
    #120488

    ROSS
    Member

    All,
       RIP=raw material in process:
    BR!
    Tony

    0
Viewing 3 posts - 1 through 3 (of 3 total)

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