One of the main disadvantages of quantitative ordering method is ()

One of the main disadvantages of quantitative ordering method is that it will lead to oversupply or shortage when demand fluctuates.

The specific reasons are as follows:

Market demand:

Quantitative ordering is a purchasing method of ordering goods in a fixed quantity. One of its main shortcomings is that when the demand fluctuates, it will lead to oversupply or shortage, which will affect the procurement efficiency and economic benefits of enterprises. On the one hand, the method of fixed order quantity cannot flexibly adapt to the fluctuation of market demand.

When the market demand is large, enterprises can't provide enough goods in time, resulting in shortage, affecting user experience and brand image, and even losing customers; When the demand drops, suppliers overproduce, and enterprises need to spend a lot of money to buy unnecessary inventory, but also need to occupy the corresponding storage space and management costs.

Adjustment of order quantity:

On the other hand, it is difficult to cope with the change of procurement cost by means of fixed order quantity. With the increase of price or the change of suppliers, the purchase cost of the same purchase quantity will also change. This requires enterprises to constantly adjust the order quantity to adapt to different procurement costs, so as to ensure the minimum procurement costs.

The advantages of quantitative ordering include:

Simple and convenient:

Quantitative ordering is a relatively easy procurement method to realize and operate. Enterprises only need to set a fixed purchase quantity according to historical sales data or demand forecast results to complete the purchase. This can greatly reduce the workload and complexity of enterprises in the procurement process.

Reduce procurement costs:

By ordering quantity, enterprises can book goods from suppliers and reduce procurement costs. Suppliers can carry out production and logistics distribution according to the predetermined quantity of enterprises, eliminate the risk of overproduction and inventory backlog, and thus save procurement costs.

Improve procurement efficiency:

Through quantitative ordering, enterprises can simplify the procurement process, reduce procurement times and improve procurement efficiency to a certain extent. Employees don't need to make frequent adjustments to the procurement process, but can focus on other aspects of work and improve the work efficiency and production efficiency of the enterprise.

Reduce supply chain risks:

Through quantitative ordering, enterprises can better control the risk of supply chain and reduce the risk of overstock and unsalable inventory. This can reduce the operating pressure of enterprises, at the same time, it can better protect the interests of enterprises and improve their economic benefits.