What are the advantages and disadvantages of quantitative order point method?

Order point method is divided into reorder point method and two-box method.

Calculation formula: order point = inventory at the beginning of order lead time+safety inventory; Two-box method: safety stock = order quantity.

Meaning:

1 is an inventory replenishment method to make the inventory not lower than the safety inventory; Order point.

When the material in a container is used up, it will be replenished. At this time, the materials in another container are used, and the two containers are used alternately; Two boxes method.

Function:

1, which is suitable for material supply with balanced consumption; Order point.

2. Suitable for materials with low value and short lead time; Two-box method

Advantages and disadvantages of order point method;

Advantages: simple calculation.

Disadvantages: the order date is not determined according to the real time required for various materials, which often leads to a large inventory backlog.

Related content explanation:

Quantification refers to definite quantity, specified quantity and limited quantity. Because it has a certain limit, it is exclusive, that is, this quantity rather than that quantity. "Quantization is a quantity with specified or general boundaries", "Quantity is quantification, or, whether it is continuous or discrete, it has boundaries". "Quantization is only itself, and it generally has boundaries; Its boundary is quantitative, abstract and simple. " "Quantity is exclusive in nature, and the exclusive quantity is quantitative or limited".