Re-order quantity (ROQ) (or replenishment order quantity)

Re-order quantity (ROQ) (or replenishment order quantity)

1) The calculated order quantity necessary to replenish stocks at a given point in time. The method of calculation, and the timing of the order, will vary depending on the type of inventory control system in use.

Quantity-based systems are checked continually to determine if an order should be placed; time based systems only have a count of stock at predetermined intervals and orders placed as required; a distribution system plans orders to meet distribution needs; and production-based systems only order stock to meet manufacturing requirements. (Source: ILT Supply-Chain Inventory Management SIG)

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.202 (288 p.)