Replenishment strategies

Replenishment strategies determine the most efficient way to order inventory, such as Fixed Order Point (FOP) and Time Phased Ordering (TPO). The Inventory Control application supports both strategies.

For the Fixed Order Point strategy, Inventory Control reorders an item when the available quantity falls below a reorder point. Each item is assigned its own reorder point. For example, you might reorder black pens when the available quantity is less than five boxes.

For the Time Phase Ordering strategy, Inventory Control reorders the item based on a time period of supply and demand. This strategy lets you analyze the item's movement and base future orders on that movement. For example, suppose your item is copier paper. Your stock was depleted at a higher rate during the past three months and you expect the trend to continue. You can reorder at a rate that matches the depletion rate.