What is the quantitative ordering method?

Quantitative ordering method is an inventory control method to replenish the order according to the specified quantity (generally based on EOQ of economic batch) when the inventory drops to the predetermined minimum inventory (order point).

It mainly controls the order by controlling the order point and the order batch, so as to meet the inventory demand to the maximum extent and minimize the total cost.

Because the order quantity of quantitative ordering method is fixed, it has the advantages of convenient management and easy to order in batches according to economic orders, but also has the disadvantages of lax management and complicated planning in advance, so it has a certain scope of application.

Generally, the quantitative ordering method is more suitable for the following situations:

(1) Products with relatively cheap unit price and inconvenient to order in small quantities, such as bolts and nuts;

(2) Maintenance materials with difficult demand forecast;

(3) A wide variety of goods with a large amount of warehouse management affairs;

(4) Products with complicated consumption calculation;

(5) Products with strong versatility and relatively stable total demand.