Periodic replenishment method Period Order Quantity

The periodic replenishment (Period Order Quantity method) consists in defining a supply calendar.

At the planned date, an order is launched on which the quantity will be related to:

• the average consumption (km)

• the duration between 2 orders (P)

• the procurement time (d)

• the safety stock (S_s)

An inventory replenishment level is defined, then, by difference with the inventory level at the planned order day, we calculate the quantity to order (q) taking into account the procurement time.

• The replenishment level (NR) is calculated the following way:

NR = km (P + d + dS_s)

km = Average consumption

P =    Duration between 2 orders

d =    Procurement time

dS_s = Safety stock expressed in time

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