11. Joint Order Allocation
Joint Order Allocation is used to create an order when the order is too small for the vendor minimum. In a case like this, test the system to see whether it is necessary to create a large order. Start by adding an extra period or fraction of the period to the order to make weight. The first thing to check is whether an order is needed in the warehouse. Do this by checking to see what the service would be when waiting for the next buying interval to place an order.
Remember, as with the ABCDE inventory classification system, the inventory is broken into five distinct groupings of importance. The importance level is denoted by the Pk or personalized service level, which dictates that this is the minimum service level ...
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