Economic order quantities may require ordering large quantities resulting in light inventory costs. One way of overcoming this is to order smaller quantities periodically. Each order covers the demand for a fixed period of time such as a week or a month. The amount so ordered changes with the demand. Quantity so ordered is called periodic order quantity (POQ). In POQ procedures, orders for replenishment occur at fixed intervals. An example would be to order exactly the quantity needed every two weeks.
See Economic order quantity (EOQ); Fixed order quantity inventory model; Fixed time period inventory model; Inventory flow analysis; MRP.
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© 2000 Kluwer Academic Publishers
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(2000). PERIODIC ORDER QUANTITY (POQ) . In: Swamidass, P.M. (eds) Encyclopedia of Production and Manufacturing Management. Springer, Boston, MA . https://doi.org/10.1007/1-4020-0612-8_681
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DOI: https://doi.org/10.1007/1-4020-0612-8_681
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