Inventory models

The basis for each planning concept is an inventory model. Lanza has three inventory models: fast, slow, non.

Fast

For fast movers, Lanza uses a R,s,Q-inventory model, calculating the reorder point and order quantity. Inventory is reviewed every period (R). When the inventory drops below the reorder point (s), a replenishment is triggered for replenish the inventory with the order quantity (Q).

• Applicable for fast moving parts
• Uses R, s, Q-model
• Assumes normal distribution of demand
• Default model for: ‘Wholesale’, ‘Lean’, ‘Proactive’