Management has determined that due to good supply chain relationships the lead time for inventory is constant, but the demand for the stock lines varies according to season, time of the month and the general macro-environment (such as interest rates affecting disposable income).

They want to provide an example of the reorder point of one fast moving item to guide the procurement department. This example can then be applied to other items going forward.

They decide to use a low-cost kettle for this exercise. The kettle is received from a warehouse central to most of the branches. The lead time is five days. They currently use a reorder point of 300 kettles, with a fixed order quantity of 250 kettles.

Currently, they have 400 kettles in stock. There are no back orders or scheduled receipts in the system. Daily demand varies from day to day to be 60 on day two, then 80, 40, 75, 55 each consecutive day and 95 on day 7.

Develop the example for management in tabular format for up to seven days. Provide a decision point at the end of the table, which will determine when they should order.