In this post, I will make few examples using different Reordering Policy 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.