The principle and scope of application of the quantitative ordering method and the periodic ordering

Quantitative ordering is suitable for products with small sales volume or relatively high single product **. (Consumer durables).

Regular orders are suitable for products with relatively high sales volume and relatively fixed sales. (FMCG).

Quantitative ordering method is an inventory control method for replenishing orders according to the specified quantity (generally based on economic batch EOQ) when the inventory drops to the predetermined minimum inventory (order point).

It mainly controls the order by controlling the two parameters of the order point and the order quantity, so as to achieve the purpose of not only meeting the inventory demand but also making the total cost the lowest.

Because the quantity of orders is fixed by the quantitative ordering method, it is convenient to manage and easy to use in economic order lots.

At the same time, it also has some disadvantages such as inconvenient strict management and complicated pre-planning, so there is a certain range of suitable high and simple use.

In general, it is more appropriate to use the quantitative ordering method in the following situations:

1) The unit price is relatively cheap, and it is not convenient for a small number of products to order, such as bolts, nuts, etc.;

2) The demand for maintenance materials is more difficult;

3) A wide variety of items, a large amount of warehouse management affairs;

4) products with complex consumption calculations;

5) Products with strong versatility and relatively stable total demand.

Advantages of the regular ordering method: simple operation, saving work volume, and providing economic benefits.

Wait; The disadvantages of the regular order method with rough notice: it occupies manpower and material resources, the order time cannot be determined in advance, and it is limited by a single order.

Advantages of the quantitative ordering method:

1) Once the control parameters are determined, the actual operation is much simpler. In practice, the "double-stack method" and "three-stack method" are often used to deal with it;

2) When the order quantity is determined, the acceptance, warehousing, storage and delivery of goods can be calculated by using the existing standardization method, and the amount of work in handling, packaging and other aspects can be saved;

3) The role of economic batch is fully exerted, which can reduce inventory costs, save costs and improve economic benefits;

4) Be able to grasp the inventory dynamics frequently, order in time when needed, and it is not easy to run out of stock.

3.Disadvantages of the periodic ordering method:

1) The inventory level must be constantly checked (along with the inventory management information system.

application, this problem can be better solved), occupy the stool infiltrated a certain amount of manpower and material resources;

2) The order time can not be determined in advance, it is difficult to prepare a thorough procurement plan, which is not conducive to the implementation of planning arrangements for personnel, funds and work business;

3) Limited by a single order, it is difficult to achieve multi-variety joint ordering, nor can you get a discount for combined ordering.

Extended Information:1The scope of application of the periodic order method is:

Important items that require strict management due to high consumption amounts. Depending on the market conditions and the business minute hand, it is necessary to adjust the quantity of items produced or purchased frequently. The demand fluctuates greatly, and the amount of change is cyclical, and it can be correctly judged.

Items that can be determined such as construction works, exports, etc.

2.The periodic ordering method is a method of inventory management that replenishes the stock at predetermined order intervals.

The number of orders may change at a time. Order quantity = maximum inventory quantity - on-hand inventory quantity + customer delayed purchase quantity. It is suitable for Class B and Class C commodities with a large number of varieties and a small average occupied capital in ABC classification management, and only needs general management.

The difference between the two: 1. The applicable products are different.

The quantitative ordering inventory control method is suitable for Class A commodities with a small number of varieties and large average occupied funds, which need to be managed in a key manner; The regular order inventory control method is suitable for Class B and C commodities with a large number of varieties and a small average occupied capital, and only need to be managed in general.

2. The degree of control over the product is different.

The quantitative ordering method has a looser control over commodity inventory and fewer inspections; The periodic ordering method requires frequent inventory checks and strict inventory control.

3. The order quantity is different.

The order lot is small for the quantitative order method and large for the regular order method.

The formula of the periodic order method: order quantity = maximum inventory quantity - on-hand inventory quantity + customer delayed purchase quantity.

Summary. Hello, the quantitative ordering method needs to check whether the inventory is reduced to the order point every time you order, so you need to often understand and grasp the dynamics of the inventory, that is, check and inventory frequently, because of this, the quantitative ordering method has a large workload and takes a lot of time.

Hello, the quantitative ordering method needs to check whether the inventory is reduced to the order point every time you place an order, so you need to often understand and master the dynamics of the inventory, that is, to check and count the remaining fingers frequently.

The quantitative ordering method is based on the demand for the lead time, and the purpose of formulating the strategy is to ensure that the user's demand is met during the lead time, and its decision-making parameter qk only needs to ensure the user's demand within the lead time according to a certain degree of satisfaction. The purpose of the periodic order method is not to meet the user's demand during the lead time, but to meet the demand during the order cycle and the user's demand during the lead time, that is, to meet the total demand of the user during the T+TK period. It is based on the total user demand during the T+TK period to determine Qmax, because the total demand during the T+TK period is randomly changing, it is a random variable.

The value is also made up of two parts, one is the average demand during the T+TK period, and the other is the safety stock set to prevent random delays.

The advantages of the regular ordering method: simple operation, saving the amount of work, providing economic benefits, etc.; Disadvantages of the regular order method: it occupies manpower and material resources, the order time cannot be determined in advance, and it is limited by a single order.

Advantages of quantitative ordering method: 1) Once the control parameters are determined, the actual operation is much simpler. In practice, the "double-stack method" and "three-stack method" are often used to deal with it; 2) When the order quantity is determined, the acceptance, warehousing, storage and delivery of goods can be calculated by using the existing standardization method, and the amount of work in handling and packaging can be saved; 3) The role of economic batch is fully exerted, which can reduce inventory costs, save costs and improve economic benefits; 4) can often grasp the inventory dynamics, order in time when needed, and it is not easy to be out of stock.

3.The disadvantages of the periodic ordering method: 1) the inventory must be constantly checked (with the application of the inventory management information system, this problem can be better solved), which occupies a certain amount of manpower and material resources; 2) The order time can not be determined in advance, it is difficult to prepare a thorough procurement plan, which is not conducive to the implementation of planning arrangements for personnel, funds and work business; 3) Limited by a single order, it is difficult to achieve multi-variety joint ordering, nor can you get a discount for combined ordering.

The ordering method in the title is the periodic ordering method. The periodic ordering method is an inventory management method that replenishes orders at predetermined order intervals. Here's how it works:

Determine an order cycle and the maximum inventory in advance, check the inventory periodically, calculate the batch of each order according to the maximum inventory, actual inventory, order quantity in transit and the number of goods to be shipped, issue order instructions, and organize orders. The quantitative ordering method is also known as the continuous inspection control method or the order point method. Here's how it works:

Continuously monitor the changes in the inventory balance, when the inventory balance drops to a certain predetermined value, it will send a fixed batch of order requests to the first merchant, and after a period of order time, the inventory will be replenished after the order arrives.