| Reordering Policy | Description | Pending Parameters | Manufacturing | Reservation |
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| Order | - Make-to-Order items.
- items that are purchased as drop shipment and special order.
- The order quantity will be calculated to meet each single demand event and the demand-supply set will remain linked until execution.
| - No planning parameters are considered.
| use for top-level items and expensive components and subassemblies | Automatic reservation. |
| Lot-for-Lot | - Most flexible policy that only reacts to actual demand
- purchase order combined for same vendor.
- The quantity is calculated to meet the sum of the demand that comes due in the time bucket.
|
| use for components that occur in multiple BOM.
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| Fixed Reorder Qty | - Use for the item with low inventory cost, risk of obsolescence and low number of items.
- At a minimum, the order quantity will be equal to the reorder quantity.
- User can increase the quantity to meet the demand or the desired inventory level.
| - This reordering policy is usually used with a reorder point.
| use for lowest level components. | Not appropriate for the item it often reserved. |
| Maximum Qty | - use for the item with high carrying cost or storing limitations.
- The order quantity is calculated to meet the maximum inventory.
- If quantity modifiers are used, then maximum inventory can be violated.
| - This reordering policy is usually used with a reorder point.
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