gra.net.au

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a one glance insight to supply chain replenishment practices

#3DAYS COVERtarget inventory is based off a

moving average of recentdemand & inventory for the

period

simple calculation - considers inventoryposition for a period

looks at past trend, not future forecast

spikes and troughs will impact inventory settings

ROP/ROQtakes elements of days cover

& MIN-MAX, planning fordemand over lead time

#4accounts for demand over lead time

does not account for future orders

ROPs/ROQs fixed

GRA is Australia’s premier, expert consulting firm specialising in supply chain strategy,planning and execution. We offer consulting, professional services, supply chain planningsystems, training & education and benchmarking across a broad range of industries.

TPRPcombines both MRP and DRP

requirements to forecastindependent demand and

dependent demand

#5works best with advanced inventory

optimisation

high levels of difficulty to implement

requires data and process maturity

provides accurate planning of supply chainrequirements

REPLENISHMENT METHODOLOGIES

MIN - MAXonce inventory reaches theminimum setting, an order is

released to bring inventory backup to the maximum setting

set & forget with simple maintenance &system requirements

good for environments with limited warehousing space

issues with long lead times & additional holding of inventory

high risk if the minimum inventory is set to 0

FIXED CYCLEordering cycles are set with order

quantities to be determined

simple calculation

know when to order

not flexible to true inventory requirements

high impact when stock out

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