Regional ordering |
Regional ordering is a method of managing inventory, along with EOQ and Min/Max. In this model, each location's purchasing and replenishment is handled by a regional purchasing location. A central materials ordering group gathers the orders from all locations, pools them into purchase orders for each vendor, and submits the orders for all locations. One organization may have several regional purchasing locations, which handle all parts ordering and receipt.
Each individual stockroom may keep their own reorder points and amounts, but reorder requests are grouped together regionally and purchased together.
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