Glossary

Optional Replenishment Model

Tags: Glossary

An optional replenishment model similar to the fixed order period model. In this model, unless inventory has dropped below a prescribed level when the order period has elapsed, no order is placed. Intended to protect against placing very small orders it is attractive when review and ordering costs are large. Also See Fixed Reorder Cycle Inventory Model, Fixed Reorder Quantity Inventory Model, Hybrid Inventory System, Independent Demand Item Management Models