Agriculture Reference
In-Depth Information
X = Review periods
r = Reorder point
R = Reorder level
On-hand
inventory
R
r
X
X
(No order placed)
X
Time
Lead time
Lead time
Order
placed
Order
received
Order
placed
Order
received
Figure 15.
3
Periodic review inventory system
On-hand
inventory
Q
units
Q
units
r
Time
0
Place
order
Lead time
Receive
order
Place
order
Receive
order
r = Reorder point
Q
= Order quantity
Lead time
Figure 15.4
Continuous review inventory system
