A Business Encyclopedia

Fixed Period Ordering

Definition: The Fixed Period Ordering is an inventory control system, wherein the order for the replenishment of inventory items is sent periodically or after a fixed time interval. It is also called as Fixed Period Deficit Ordering system, because every time the order is placed, the order quantity is different.

Thus, fixed period ordering is a method wherein the firm places an order with the supplier for the supply of different quantities of material at a fixed time interval. This enables a firm to take into consideration the sales trend and the customer’s preferences in a particular period before placing the replenishment order with the supplier.

The fixed period ordering system is helpful for a firm in the following ways:

  • The large fluctuations in the demand patterns can be handled efficiently.
  • The seasonal variations are considered before placing an order.
  • The inventory can be managed more efficiently, by continually checking it against the pre-set reorder level.
  • Best suited for the “A” category inventory items, which are of high value.
  • A longer lead time is manageable.

Thus, Fixed ordering system enables a firm to procure that much inventory which is required in a particular period and helps in reducing the unnecessary expenditure in the form of funds blocked in inventory items of no use.

Leave a Reply

Your email address will not be published. Required fields are marked *


Related pages

example of imputed costpavlovian conditioningperfect pure competitioncorrelation factor definitionwhat is the law of diminishing marginal utilitylaissez-faire leadership examplesoligopoly market featuresformal and informal group definitionadvertising elasticitydefinition of geocentric theorymeaning of internal candidatedemergingoligopolistic competition definitiondivestiture meansclassical conditioning termswhat is dmathow to calculate total asset turnover ratiobalanced scorecard meaningdefine pension schemewhat is the definition of arbitragebases of segmenting consumer marketmeaning of elastic in economicsascertain meaning in urducarrot and stick approach in managementdefine effective listeninggross fixed assets formulawhat is the payback period statisticcauses of cost pull inflationdisguised unemployment wikiivan pavlov theory of classical conditioninga participative leadermacro environmental factors affecting marketingdefine instrumentalitywhat is operant conditioning in psychologywhat is dmatwhats jitadvantages of laissez faire leadershipcore companies meaninginternationalization strategiespavlovian conditioningnps national pension systemwhat are isoquants explain the properties of isoquantsdefine resonancesconsumer buyer behaviour definitioncompensation management meaninggross profit margin ratiohotel jargonsitemize meansinducted definewhat is a intrapreneurdebenture loan definitiontraveling chequescope of manpower planningdefine fixed cost in economicsregiocentric companiesquantity demanded definitionteleological ethical systemmcclelland three needs theoryteological ethicsadvantages of a debenturepiece work definitionwhat is the meaning of poachersphysiological barriers definitionprice elasticity of demand for luxury goodsdouglas mcgregor theory x theory ypricing methods marketingperformance appraisal essayteleology in ethicspost office savings certificatessemantic differentialsansoof matrixverticle meaningdef of laissez fairedivestiture strategysnowballing sampleconsistent meaning in tamilwhistles definitionstraddle meanscontent and process theories of motivationmeaning of fmcgpromotion mix in marketingquota sampling is an example of probability samplingforming stage of group development