Determining the replenishment quantity (Q)

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Determining the replenishment quantity (Q)

The replenishment quantity, called Q, and the replenishment frequency are determined based on various input values for Production Policies and Transportation Policies. For Production Policies, the Minimum Order Quantity and the Production Frequency are used:

Minimum Order Quantity	Production Frequency	Replenishment Frequency	Calculation of Q
0	Blank		Q not calculated
Blank	Blank		Q not calculated
0	0		Q not calculated
Blank	0		Q not calculated
Non-Zero	0	0	Q = Minimum Order Quantity
Non-Zero	Blank		Q = Minimum Order Quantity
0	Non-Zero	Production Frequency	Q = Production Frequency * Daily Demand Mean
Blank	Non-Zero	Production Frequency	Q = Production Frequency * Daily Demand Mean
Non-Zero	Non-Zero	Production Frequency	Q = Max(Minimum Order Quantity,Production Frequency * Daily Demand Mean)

For Transportation Policies, the Minimum Order Quantity from Site and Customer Sourcing Policies and the Replenishment Frequency are used:

Minimum Order Quantity	Replenishment Frequency	Shipment Period, Review Period, or Transit Time	Replenishment Frequency	Calculation of Q
0	Blank	Blank or Zero for all		Q not calculated
Blank	Blank	Blank or Zero for all		Q not calculated
0	Blank	One is Non-Zero	Replenishment Frequency	Q = Replenishment Frequency * Daily Demand Mean
Blank	Blank	One is Non-Zero	Replenishment Frequency	Q = Replenishment Frequency * Daily Demand Mean
0	0	N/A		Q not calculated
Blank	0	N/A		Q not calculated
0	Non-Zero	N/A	Replenishment Frequency	Q = Replenishment Frequency * Daily Demand Mean
Blank	Non-Zero	N/A	Replenishment Frequency	Q = Replenishment Frequency * Daily Demand Mean
Non-Zero	0	N/A	0	Q = Minimum Order Quantity
Non-Zero	Blank	Blank or Zero for all		Q = Minimum Order Quantity
Non-Zero	Blank	One is Non-Zero	Replenishment Frequency	Q = Max(Minimum Order Quantity, Replenishment Frequency * Demand Mean)
Non-Zero	Non-Zero	N/A	Replenishment Frequency	Q = Max(Minimum Order Quantity, Replenishment Frequency * Demand Mean)

Last modified: Wednesday May 15, 2024

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