The EOQ Model-Considering Lead Time Since there exits lead time t(4 moths for Example 4.1),order should be placed some time ahead of the end of a cycle; Reorder point R-determines when to place order in terms of inventory on hand,rather than time. R=A=20m)x3,120mis/W）=l,040 4 E Q=3,870 .1.24 years- 4 months R=1,040 Order placed↑ Order arrives Fig.4-6 Reorder Point Calculation for Example 4.1Since there exits lead time  (4 moths for Example 4.1), order should be placed some time ahead of the end of a cycle; Reorder point R -determines when to place order in terms of inventory on hand, rather than time. The EOQ Model-Considering Lead Time Fig. 4-6 Reorder Point Calculation for Example 4.1 4 ( ) 3,120( / ) 1,040 12 R yr units yr    