Fixed order interval

Fixed order interval

1) An inventory control system for which a maximum stock level has been calculated based on usage during the lead-time and order interval. Stock is reviewed at specified time periods and subsequent order size equates to the difference between the maximum stock level and the current inventory position.

Thus, the order size will vary according to usage between reviews. (Source: ILT Supply-Chain Inventory Management SIG)

Source: David Lowe. The Dictionary of Transport and Logistics. Kogan Page, 2002. – P.95 (288 p.)