1. User Guide
  2. IPOCS-LAR Replenishment Parameters for Different ROL or RUTL Methods

E IPOCS-LAR Replenishment Parameters for Different ROL or RUTL Methods

The following sections detail the IPO-LAR Replenishment methods.

Reorder Level (ROL) Method

  • MinQty

    ROL = Minimum Quantity

  • MinTS

    ROL = CumulatedForecast(Minimum Target Stock)

  • Statistical Safety Stock

    ROL = CumulatedForecastPlusSafetyStock((Lead Time + Next Review Time), Target SL %, Volatility %)

Reorder Up to Level (RUTL) Method

  • MaxQty

    RUTL = Maximum Quantity

  • MaxTS

    RUTL = CumulatedForecast(Maximum Target Stock)

  • TargetDos

    RUTL = CumulatedForecast(max(Lead Time + Next Review Time, Target Days of Supply))

  • Stat SS

    RUTL = CumulatedForecastPlusSafetyStock((LeadTime + Next Review Time + Target Stock Safety Time), Target SL %, Volatility %)

  • Target Stock - Target Stock

    Fixed 1 (Initial Allocation)

    ROL & RUTL = Fixed Target Stock 1

    Fixed 2 (Manual Allocation)

    ROL & RUTL = Fixed Target Stock 2

    Fixed 3 (Placeholder for other way of getting an allocation)

    ROL & RUTL = Fixed Target Stock 3

    Season Sales Percentage (Percentage of the total initial forecast)

    ROL & RUTL = Total Initial Forecast * "Target Stock Seasonal Forecast %"

    Safety Time

    ROL & RUTL = CumulatedForecast(Lead Time + Next Review Time + Target Stock Safety Time)

    Statistical Safety Stock

    ROL & RUTL = CumulatedForecastPlusSafetyStock((Lead Time + Next Review + Target Stock Safety Time), Target SL %, Volatility %)

    End Of Life,

    ROL & RUTL = CumulatedForecastPlusSafetyStock(Last Day of Forecast, Target SL %, Volatility %)

    Minimum

    Get the minimum value of all Target Stock Method.

    Maximum

    Get the maximum value of all Target Stock Method.

Where:

CumulatedForecast(Horizon)

Returns sum of forecast demand from the 1st forecast day up to horizon.

CumulatedForecastPlusSafetyStock(Horizon, Service Level %, Volatility %)

"Cumulative Demand plus Safety Stock" = CumulatedForecast(Horizon) * (1 + 01. * "Volatility %") * (Standar Norms Inverse of "Service Level %") "Poisson Distribution" = Inverse Poisson (CumulatedForecast(Horizon), Service Level %)

  • if CumulatedForecast(Horizon) <= 5 units then Statistical Safety Stock is equal to Poisson Distribution

  • else if CumulatedForecast(Horizon) is 6 to 8 units then Statistical Safety Stock is 80% Poisson Distribution and 20% Cumulative Demand plus Safety Stock

  • else if CumulatedForecast(Horizon) is 9 to 12 units then Statistical Safety Stock is 60% Poisson Distribution and 40% Cumulative Demand plus Safety Stock

  • else if CumulatedForecast(Horizon) is 13 to 15 units then Statistical Safety Stock is 40% Poisson Distribution and 60% Cumulative Demand plus Safety Stock

  • else if CumulatedForecast(Horizon) is 16 to 20 units then Statistical Safety Stock is 20% Poisson Distribution and 80% Cumulative Demand plus Safety Stock

  • else if CumulatedForecast(Horizon) is greater than 20 units then Statistical Safety Stock is equal to Cumulative Demand plus Safety Stock

Returns Statistical Safety Stock based on the previously listed conditions.