Reorder Quantity

Reorder quantity 
In a fixed reorder quantity system of inventory control, the fixed
quantity that should be ordered each time the available stock (on-hand
plus on-order) falls to or below the reorder point. 2) In a variable
reorder quantity system, the amount ordered from time period to time
period will vary.

Fixed reorder cycle inventory model
A form of independent demand management model in which an order is
placed every n time units. The order quantity is variable and
essentially replaces the items consumed during the current time
period. In the simplest model, the order quantity will be M (maximum
inventory desired at any time) - x (quantity on hand at the time the
order is placed). The quantity M must be large enough to cover the
maximum expected demand during the lead time plus a review interval.
The order quantity model becomes more complicated whenever the
replenishment lead time exceeds the review interval, because
outstanding orders then have to be factored into the equation.


Sumber : APICS Dictionary