The order-up-to policy is also called demand replication policy This means - The order quantity equals the mean demand forecast of the next period. (Assume the initial inventory position is below the order-up-to level) - The order quantity equals the order-up-to level minus the demand volume in the past period . (Assume the initial inventory position is below the order-up-to level.) - The order quantity equals the order-up-to level minus the mean demand forecast of the next period(Assume the initial inventory position is below the order-upto level.) - The order quantity equals the demand volume in the past period. ( Assume the initial inventory position is below the order- up-to level.)