In this post, I will make few examples using different Reordering Police for the same case. Before each example, I will put conditions.
Minimum Order Quantity < Reorder Quantity & Maximum Inventory
Reordering Policy | Fixed Reorder Qty. | Maximum Qty. | Order | Lot-for-Lot |
Inventory Stock | 0 | 0 | 0 | 0 |
Sales Order Quantity | 0 | 0 | 0 | 0 |
Sales Order Date | - | - | - | - |
Safety Stock Quantity | 50 | 50 | - | - |
Reorder Point | 100 | 100 | - | - |
Reorder Quantity | 1.000 | - | - | - |
Maximum Inventory | - | 1.000 | - | - |
Minimum Order Quantity | 200 | 200 | - | 200 |
Maximum Order Quantity | 2.000 | 2.000 | - | 2.000 |
Order Multiple | 1 | 1 | - | 1 |
Quantity on Demand | 1.050 | 1.000 | - | - |
Due Date | 0D | 0D | 0D | 0D |
Fixed Reorder Qty.:
- Quantity on Demand = Reorder Quantity + Safety Stock Quantity
- Due Date = the same date
Maximum Qty.:
- Quantity on Demand = Maximum Inventory
- Due Date = the same date
Order:
- Quantity on Demand = Sales Order Quantity
- Due Date = -
Lot-for-Lot:
- Quantity on Demand = Sales Order Quantity
- Due Date = -
Minimum Order Quantity > Reorder Quantity & Maximum Inventory
Reordering Policy | Fixed Reorder Qty. | Maximum Qty. | Order | Lot-for-Lot |
Inventory Stock | 0 | 0 | 0 | 0 |
Sales Order Quantity | 0 | 0 | 0 | 0 |
Sales Order Date | - | - | - | - |
Safety Stock Quantity | 50 | 50 | - | - |
Reorder Point | 100 | 100 | - | - |
Reorder Quantity | 1.000 | - | - | - |
Maximum Inventory | - | 1.000 | - | - |
Minimum Order Quantity | 2.000 | 2.000 | - | 2.000 |
Maximum Order Quantity | 5.000 | 5.000 | - | 5.000 |
Order Multiple | 1 | 1 | - | 1 |
Quantity on Demand | 2.050 | 2.050 | - | - |
Due Date | 0D | 0D | 0D | 0D |
Fixed Reorder Qty.:
- Quantity on Demand = Minimum Order Quantity + Safety Stock Quantity
- Due Date = the same date
Maximum Qty.:
- Quantity on Demand = Minimum Order Quantity + Safety Stock Quantity
- Due Date = the same date
Order:
- Quantity on Demand = Sales Order Quantity
- Due Date = -
Lot-for-Lot:
- Quantity on Demand = Sales Order Quantity
- Due Date = -
In next post, I will explain more examples.