Inventory planning and control
6 important questions on Inventory planning and control
Def: inventory profile
Def: re-order point (ROP)
Def: re-order level (ROL)
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Difference between continuous review and periodic review:
Periodic review: A simple alternative is to order after a period of time. the order size will be different depending on demand for that period. (time between ordering can be calculated with the Economic Order Quantity Model)
How can inventory be controlled?
ABC inventory control: this is an inventory control system that uses usage value to divide items in 3 different classes
What is the perceptual inventory principle
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