Time-phased order point (TPOP)

Time-Phased Order Point is a demand-pull system that regulates the time-phased supply of items to shop floor warehouses.

Time-phased means that warehouse orders are generated as a result of manually running a session which checks whether the inventory of the item will drop below the reorder point within the specified order horizon.

The quantity of items that is supplied to the shop floor warehouse depends on:

• The available inventory in the shop floor warehouse.
• The inventory that is planned to be delivered to the shop floor warehouse within the specified order horizon.
• The specified reorder point for the item and shop floor warehouse.
• The available inventory plus the planned inventory: if they are below the reorder point, the inventory in the shop floor warehouse is replenished.

In Time-Phased Order Point, unlike in KANBAN, inventory administration is performed for the items that are used in the shop floor warehouse.

The Time-Phased Order Point supply system is applicable if:

• Parts usage by assembly order by line station is known (inventory administration is performed at the shop floor warehouse).
• Assembly orders allocate parts at the shop floor warehouse.
• Parts are backflushed against shop floor warehouse.
• There is a low volume of parts.
• Shop floor warehouse has no room for batch storage of large parts.
• You have slow movers or irregular demand.