Professional Documents
Culture Documents
Inventory Policies
Inventory Policies
• Review period
• Inventory Position
• Order Point
Four Key Policies
Continuous (Perpetual) Review Policies:
(s, S)- Small s denotes re-order point and Large S is the Order
up to Level
(s,Q)- Small s denotes re-order point and Q is the Economic
Order Quantity
Order up to a level S,
every time your
inventory position
drops below s (Reorder
Point).
Continuous Review Policy