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Quantity in stock Consumption line B Reorder point Safety stock Time Reorder date Delivery date Replenishment lead time Reorder Point Planning Example 250 Quantity In
Quantity in stock Consumption line B Reorder point Safety stock Time Reorder date Delivery date Replenishment lead time Reorder Point Planning Example 250 Quantity In stock Consumption line 200 150 125 B Reorder point 100 50 Safety stock 0 1 2 9 10 3 5 Reorder date 6 8 Delivery date Time in days Replenishment lead time = 3 days Figure illustrates re-order point planning concepts the latter figure showing numerical values on the axes. In reorder point planning, no planning actually occurs. Instead, the system responds only if inventory drops below the reorder point. In other words, the system reacts to an event, but if that event does not occur, then the system does nothing to trigger replenishment. it is possible to plan replenishment based on forecasted demand. Under what circumstances should an organization use reorder point planning, and under what circumstances should it use MRP-based logic? Quantity in stock Consumption line B Reorder point Safety stock Time Reorder date Delivery date Replenishment lead time Reorder Point Planning Example 250 Quantity In stock Consumption line 200 150 125 B Reorder point 100 50 Safety stock 0 1 2 9 10 3 5 Reorder date 6 8 Delivery date Time in days Replenishment lead time = 3 days Figure illustrates re-order point planning concepts the latter figure showing numerical values on the axes. In reorder point planning, no planning actually occurs. Instead, the system responds only if inventory drops below the reorder point. In other words, the system reacts to an event, but if that event does not occur, then the system does nothing to trigger replenishment. it is possible to plan replenishment based on forecasted demand. Under what circumstances should an organization use reorder point planning, and under what circumstances should it use MRP-based logic
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