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VRO sizing

To manage a reference with VRO, 2 parameters need to be defined:

  • the Loop to be able to calculate the quantity to order;
  • the Maximum In House Inventory to define the physical storage requirement and allows Overflow Management.

VRO Loop

The VRO loop represent the maximum inventory (virtual or real) necessary to cover the VRO ordering cycle.

VRO loop calculation To calculate the VRO Loop requires to have a good understanding of all factors of the global SupplyChain.

Maximum In-House Inventory (MIHI)

The Maximum In-House Inventory represents the maximum inventory hold in-house by the customer for a reference managed with VRO.

MIHI calculation The calculation of MIHI helps to design a storage layout consistent with the demand and the VRO process.

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  SupplyFlow - USA - France