Replenishment policy (s, Q)

An (s, Q) replenishment policy orders a fixed quantity Q as soon as available stock falls below the threshold s (the reorder point). It is simple to apply and to simulate. It is compared with other policies by the service level obtained and the average stock held.

Example

With s = 130 and Q = 400: if stock falls to 125, an order for 400 units is launched.

Related concepts

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