The so-called quantitative ordering method is to determine an order point and order batch in advance, check the inventory at any time, issue an order when the inventory drops to the order point, and the order batch takes the economic order batch.

We sometimes call quantitative order inventory control method (S, S) inventory control strategy. That is, continuous inventory counting. When the remaining inventory X drops to S, place an order immediately, and the replenishment quantity Q=S-x, so that the inventory level reaches S, where S is called the ordering point (or minimum inventory) and S is called the maximum inventory level.

The reorder point and order quantity of quantitative order inventory control method are predetermined, the inspection time is continuous and the demand is variable.

The main disadvantage of quantitative order inventory control method is that it must constantly check the inventory of the warehouse. Moreover, because the order of a commodity may be available at any time, it is difficult to combine several commodities into the same order and supply it by the same supplier, thus resulting in certain cost savings.

The main advantage of quantitative order inventory control method is that the means and methods of inventory control are relatively clear and simple, and the inventory cost of high-value goods can be accurately controlled.

Second, the regular order method

Regular ordering method is an inventory control method to replenish inventory by ordering on schedule according to the predetermined ordering time interval. The decision-making idea is: check the stock of inventory items regularly. According to the difference between the inventory result and the predetermined target inventory level, the batch size of each order is determined. Here, it is assumed that the demand changes randomly, so the reserves of each inventory count are not equal, and the quantity that needs to be replenished to reach the target inventory level Q0 also changes. In this way, the decision variables of this kind of system should be the inspection period T and the target inventory level Q0.

Prerequisites for conventional ordering methods

(1) Its direct application is only applicable to a single variety. But with a little treatment, it can also be used for joint ordering of several varieties.

(2) It is not only suitable for stochastic demand, but also suitable for deterministic demand. According to different demand types, specific application forms can be derived, but their application principles are the same.

(3) It is suitable for B-class and C-class commodities with a large variety, less average capital occupation and just good general management.

Third, the difference between quantitative ordering method and regular ordering method

1. The criteria for ordering requests are different.

The time standard of order request in quantitative order inventory control method is to make an order request when the inventory drops to the predetermined order point; In the conventional order inventory control method, the time standard for making an order request is to make an order request when an order occurs according to the pre-specified order interval period.

2. The quantity of goods ordered is different.

The quantitative order inventory control method has the same batch of goods every time, which is a predetermined economic batch; However, in the conventional order inventory control method, the quantity of goods ordered in each specified request order cycle is different, which can be determined after calculation according to the actual situation of inventory.

3. The management control degree of the inventory goods is different.

Regular order inventory control method requires warehouse operators to strictly control and carefully manage the inventory goods, regularly check, record in detail and carefully count them; When using the quantitative order inventory control method, only general management and simple records are needed for the inventory goods, and frequent inspection and counting are not needed.

4. The scope of applicable commodities is different.

The quantitative order inventory control method is suitable for class A goods with small variety, large average capital occupation and need to be managed emphatically; Regular order inventory control method is suitable for B and C commodities with a large number of varieties and less average capital occupation, which only need general management.