A quantitative order

Quantitative approach is that when ordering stocks dropped to a predetermined minimum amount of inventory (order point), the required quantity (generally the standard EOQ EOQ) in order to add a kind of inventory management.

Quantitative order is characterized by extensive large number of orders, in this case, of course not required for precise management of the A class material, generally applicable quantitative order is not particularly important for enterprise C-class material. A large number of orders taken by way of a fixed amount.

1. Reorder point determination

(1) the demand and lead time to determine the situation, without setting safety stock:

Order point = lead time (days) * annual demand / 360

That R = LT * D/360

(2) the demand and lead time are not defined circumstances need to set the safety stock:

Order Point = (average demand * maximum lead time) + safety stock

Safety Stock = safety factor * √ ˉ biggest changes in demand lead time value * (Note: The maximum lead time, roots)

Second, regular order

The principle of periodic order method: a predetermined period and maximum ordering inventory, periodically check the inventory, according to the highest inventory, actual inventory, in transit to be out of order quantity and the number of database products, calculate the quantity of each order issued ordering instructions organized order.

Regular order is fixed a feature of the cyclical, periodic order quantity is not fixed but determined, which means in terms of the need to periodically check the inventory, which in the periodic, regular checks for very strict and not allowed out of the A class material, and quantitative comparison in terms of orders, regular orders of the periodic inspection to ensure the goods are not even out of stock.

1. Order cycle T, to determine:

T *= √ ˉ 2S/CiR

T * for the economic order cycle; S cost for the single order; Ci units of goods in storage costs; R as the unit of time the stock goods demand (sales).

2. Determination of the maximum inventory Q:

Qmax = ˉ Q (T + ˉ Tk) + Qs

Qmax was the highest inventory; ˉ R to T + Tk average demand during the inventory; T for the order cycle; for the average lead time; Qs for safety stocks.

3. Order to determine the amount of:

Qi = Qmax + Qni-Qki-Qmi

Qi is the i th order of the order; Qmax is the maximum storage capacity; Qni point for the i-th order is in transit to the volume; Qki point for the i-th order the actual inventory; Qmi for the i-th order points to be a library volume.