Table of Contents
Definition of the order cycle procedure
The order cycle procedure is a method of consumption-related replenishment of material stocks. It has fixed procurement rhythms and variable order quantities, the scope of which depends primarily on the consumption between the inspection times.
Prerequisite for the periodic inventory check
The prerequisite for the process of the determination is a periodic inventory check, which has to record the consumption of the previous order period. The more frequently checks are carried out between the order cycles, the more precisely the order quantity can be determined.
Ordering rhythm in practice
The order cycle procedure is used in operational practice if the delivery cycle is specified by the supplier or if the company's production cycle allows missing materials to be ordered only at certain forecast periods.
Since the material stock is unknown between the inspection times, the material requirements must be taken into account during the inspection time.