Procurement heuristics
Procurement heuristics (also warehouse maintenance policy) is a concept from warehouse management that determines the timing and quantity of supplies at the point of consumption.
Brief description
A distinction is made between order rhythm and order point procedure:
- In the order point procedure, the order is resolved when the resources in stock reach a certain quantity (order point).
- In the order rhythm procedure, resources in stock are checked at equal periods, and the order is initiated when a certain order point is exceeded.
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Fixed order period |
Variable order period |
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Fixed order quantity |
Policy (t,q) |
Policy (s,q) |
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Variable order quantity |
Policy (t,S) |
Politics (s,S) |
Fixed order period
Variable order period
Fixed order quantity
Policy (t,q)
Policy (s,q)
Variable order quantity
Policy (t,S)
Politics (s,S)
- "t": order rhythm (fixed period between two orders)
- "s": order boundaries or reporting resources
- "S": resources required
- "q": order quantity
The (t,q) policy (= order rhythm policy - batch) is understood to be an ordering heuristic in which an order of size "q" occurs at intervals "t".
The (s,q) policy (= order point - lot policy) is characterized by the fact that after the order point "s" is exceeded, an order in the size "q" is placed
In the (t,S) policy (= order rhythm policy - stock level) the warehouse is brought to stock level "S" at regular periods "t"
The (s,S) policy (= order point - warehouse level policy) differs from the (s,q) policy in that once the order point "s" is exceeded, the storage resources are brought back to the order level (warehouse level) through the order.
It is important to mention that the actual storage resources will never reach the "S" storage level. Often mistakenly, "S" is referred to as maximum stock.
CONCERNSWNE
