Time-phased order points.

Abstract

Many software packages designed for material management in health care unfortunately only offer the option of fixed or historically calculated re-order points for inventory planning. This article describes a technique called the time-phased order point that is appropriate for industries, such as health care, in which materiel usage cannot be tied to a production plan or other schedule of events. It also provides numerous examples of the use of this technique as an aid in understanding how it works.