Design Details: Handling Reordering Policies

  • Article

For an item to participate in supply planning, a reorder policy must be defined. The following four reordering policies exist:

  • Fixed Reorder Qty.

  • Maximum Qty.

  • Order

  • Lot-for-Lot

Fixed Reorder Qty. and Maximum Qty. policies relate to inventory planning. Although inventory planning is technically simpler than the balancing procedure, these policies must coexist with the step-by-step balancing of supply and order tracking. To control the integration between the two, and to provide visibility into the involved planning logic, strict principles govern how reordering policies are handled.

In This Section

Design Details: The Role of the Reorder Point

Design Details: Monitoring the Projected Inventory Level and the Reorder Point

Design Details: The Role of the Time Bucket

Design Details: Staying under the Overflow Level

Design Details: Handling Projected Negative Inventory

Design Details: Reordering Policies

See Also

Concepts

Design Details: Planning Parameters
Design Details: Planning Assignment Table
Design Details: Central Concepts of the Planning System

Other Resources

Design Details: Balancing Demand and Supply
Design Details: Supply Planning