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Reorder Point Techniques
Systems based on reorder points assume that demand is uniform and predictable and that there is no true identifiable time of need. Hence, stock must always be available. In practice, demand is discontinuous and follows a lumpy pattern. Stock is seldom depleted item-by-item, it is more common to deplete or order by lots or batches. This ordering in lots tends to magnify the requirements or lot sizes from the finished item to the component to the raw material levels.
Price: The price factor is another important variable to be included in demand analysis. Here one has to consider the prices of the product and also its substitute and complement
why men and womens indifference curves are different
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