Illustrate the examples of the inventory control systems?

Examples of inventory control systems

Reorder level systems:

• When the current stock level decreased below a standard reorder level, than a latest order is placed for a fixed amount within order to replenish stock Periodic review systems,
• There is a fixed quantity is ordered for variable intervals of time.

Periodic review systems:

• All stock levels are reviewed at pre-found intervals of time for example, first day of each month. All orders for stock will be placed after a review.
• A variable or fixed quantity is ordered at a fixed interval of time.

Economic order quantity (EOQ):

• This model determines a fixed quantity of stock to order that would minimise the total of ordering and holding cost.
• A fixed quantity is ordered here for variable intervals of time.

ABC system:

• Higher value elements are reviewed more often and controlled through a greater extent than low value items.