Fixed Order Quantity
Inventory Management
Fixed Order Quantity
Replenishment rule that orders a predetermined quantity whenever a trigger occurs.
Examples
- 01Under a fixed order quantity rule, the planner orders 5,000 labels, one full roll pallet, whenever stock falls below 2,000.
- 02Each year, the material planner checks the fixed order quantity against usage, price breaks and the space available in the label store.
- 03Lowering the fixed order quantity from 5,000 to 2,500 labels halves average stock, while the extra order costs are only EUR 400 a year.