Cycle time procedure
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Goods are fed from the main warehouse to the picking area manually, as a precaution or on-demand. Depending on which criterion drives the replenishment, either the staging procedure, the reorder point procedure or the cycle time procedure is created. The cycle time method is especially suitable for a disposition without computer support or if the replenishment should only be carried out after a defined disposition cycle.
Characteristic of the cycle time method is the time dependence.
A predefined disposition cycle is helpful so that the person planning the use of suppliers does not have to take action for each individual order. The supplier can also use the cycle time method to deliver on regular tours. Common forms of replenishment disposition are the monthly disposition, the weekly disposition or also the daily disposition.
Two replenishment options in cycle time procedure
Cyclic individual disposition
Independently of each other, the system checks for each article at a certain point in time whether the reorder point is undershot by the following replenishment date. If this is the case, an order is placed for the optimal replenishment quantity.
Cyclical collective disposition
For all articles of the same delivery point, the system checks at a certain point in time whether the target stock difference is greater than the required replenishment quantity. If further articles are required, a collective order is triggered at the respective delivery point.
The optimal replenishment quantity is delivered on average half a period too early. Compared to the reorder point procedure, the average stock is therefore larger in replenishment planning in the cycle time procedure.
The possible replenishment coordination for several articles at the same time is to be considered as an advantage. Disadvantagesare the high space costs and the limited space per article.
Basic information on picking can be found under Picking and Packing.
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