Part-Period Balancing



Part-period balancing attempts to select the number of periods covered by the inventory order that will make total carrying costs as close as possible to the set- up/order cost. When a proper lot size has been determined, utilizing one of the above techniques, the reorder point, or point at which an order should be placed, can be determined by the rate of demand and the lead time. If safety stock is necessary it would be added to the reorder point quantity.

Reorder point =Expected demand during lead time + Safety stock


Thus, an inventory item with a demand of 100 per month, a two-month lead time and a desired safety stock of two weeks would have reorder point of 250. In other words, an order would be placed whenever the inventory level for that good reached 250 units.


Reorder point = 100/month × 2 months + 2 weeks’ safety stock = 250


The following two tabs change content below.
We, at, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]
  1. … [Trackback]

    […] Find More to that Topic: […]

  2. 조커바카라 2 months ago

    … [Trackback]

    […] Read More Info here to that Topic: […]

  3. … [Trackback]

    […] Find More on on that Topic: […]

  4. DominoQQ 2 months ago

    … [Trackback]

    […] There you can find 49307 more Information on that Topic: […]

  5. Trackback

    Interesting post

  6. viagra 100mg 2 months ago

    Thank you

    Good blog. Interesting post.

  7. best cialis site 2 months ago

    Thank you.

    Youseful blog. Good post.

  8. … [Trackback]

    […] Read More Information here on that Topic: […]

Leave a reply

Your email address will not be published.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


* is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp

Log in with your credentials


Forgot your details?


Create Account