In this post, I will make a few examples again, using different Reordering Police for the same case. Before each example, I will put conditions and I will make actual demand with Sales Order.
Minimum Order Quantity > Reorder Quantity & Maximum Inventory > Sales Order Quantity
Reordering Policy | Fixed Reorder Qty. | Maximum Qty. | Order | Lot-for-Lot |
Inventory Stock | 0 | 0 | 0 | 0 |
Sales Order Quantity | 500 | 500 | 500 | 500 |
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 | 500 | 2.000 |
Due Date | 0D | 0D | +10D | +10D |
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 = Sales Order Date
Lot-for-Lot:
- Quantity on Demand = Minimum Order Quantity
- Due Date = Sales Order Date
This is the same result as Minimum Order Quantity > Sales Order Quantity > Reorder Quantity & Maximum Inventory.
Minimum Order Quantity < Maximum Order Quantity < Reorder Quantity & Maximum Inventory < Sales Order Quantity
Reordering Policy | Fixed Reorder Qty. | Maximum Qty. | Order | Lot-for-Lot |
Inventory Stock | 0 | 0 | 0 | 0 |
Sales Order Quantity | 5.000 | 5.000 | 5.000 | 5.000 |
Sales Order Date | - | - | - | - |
Safety Stock Quantity | 50 | 50 | - | - |
Reorder Point | 100 | 100 | - | - |
Reorder Quantity | 1.000 | - | - | - |
Maximum Inventory | - | 1.000 | - | - |
Minimum Order Quantity | 150 | 150 | - | 150 |
Maximum Order Quantity | 500 | 500 | - | 500 |
Order Multiple | 1 | 1 | - | 1 |
Quantity on Demand / Due Date | 1.050 / 0D | 1.000 / 0D | 5.000 / +10D | 5.000 / +10D |
4.000 / +10D | 4.050 / +10D |
| (10 x 500) | |
1.000 / +11D | 950 / +11D |
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Fixed Reorder Qty.:
- Quantity on Demand = (Reorder Quantity + Safety Stock Quantity) + (Sales Order Quantity – Reorder Quantity) + Reorder Quantity
- Due Date = the same date / Sales Order Date / Sales Order Date+1
Maximum Qty.:
- Quantity on Demand = Maximum Inventory + (Sales Order Quantity – Maximum Inventory + Safety Stock Quantity) + (Maximum Inventory - Safety Stock Quantity)
- Due Date = the same date / Sales Order Date / Sales Order Date+1
Order:
- Quantity on Demand = Sales Order Quantity
- Due Date = Sales Order Date
Lot-for-Lot:
- Quantity on Demand = Sales Order Quantity [Maximum Order Quantity x n]
- Due Date = Sales Order Date