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E
Appendix: IPOCS-LAR Replenishment Parameters for Different ROL or RUTL Methods
The following sections detail the IPO-LAR Replenishment methods.
Reorder Level (ROL) Method
- MinQty
ROL = Minimum Quantity
- MinTS
ROL = CumulatedForecast(Minimum Target Stock)
- Statistical Safety Stock
ROL = CumulatedForecastPlusSafetyStock((Lead Time + Next Review Time), Target SL %, Volatility %)
Reorder Up to Level (RUTL) Method
- MaxQty
RUTL = Maximum Quantity
- MaxTS
RUTL = CumulatedForecast(Maximum Target Stock)
- TargetDos
RUTL = CumulatedForecast(max(Lead Time + Next Review Time, Target Days of Supply))
- Stat SS
RUTL = CumulatedForecastPlusSafetyStock((LeadTime + Next Review Time + Target Stock Safety Time), Target SL %, Volatility %)
- Target Stock - Target Stock
Fixed 1 (Initial Allocation)
ROL & RUTL = Fixed Target Stock 1
Fixed 2 (Manual Allocation)
ROL & RUTL = Fixed Target Stock 2
Fixed 3 (Placeholder for other way of getting an allocation)
ROL & RUTL = Fixed Target Stock 3
Season Sales Percentage (Percentage of the total initial forecast)
ROL & RUTL = Total Initial Forecast * “Target Stock Seasonal Forecast %“
Safety Time
May 15, 2026 Appendix E-1 of E-2
Appendix E
ROL & RUTL = CumulatedForecast(Lead Time + Next Review Time + Target Stock Safety Time)
Statistical Safety Stock
ROL & RUTL = CumulatedForecastPlusSafetyStock((Lead Time + Next Review + Target Stock Safety Time), Target SL %, Volatility % )
End Of Life ,
ROL & RUTL = CumulatedForecastPlusSafetyStock(Last Day of Forecast, Target SL %, Volatility %)
Minimum
Get the minimum value of all Target Stock Method.
Maximum
Get the maximum value of all Target Stock Method.
Where:
CumulatedForecast(Horizon)
Returns sum of forecast demand from the 1st forecast day up to horizon.
CumulatedForecastPlusSafetyStock(Horizon, Service Level %, Volatility %)
“Cumulative Demand plus Safety Stock” = CumulatedForecast(Horizon) * (1 + 01. * “Volatility %”) * (Standar Norms Inverse of “Service Level %”) “Poisson Distribution” = Inverse Poisson (CumulatedForecast(Horizon), Service Level %)
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if CumulatedForecast(Horizon) ⇐ 5 units then Statistical Safety Stock is equal to Poisson Distribution
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else if CumulatedForecast(Horizon) is 6 to 8 units then Statistical Safety Stock is 80% Poisson Distribution and 20% Cumulative Demand plus Safety Stock
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else if CumulatedForecast(Horizon) is 9 to 12 units then Statistical Safety Stock is 60% Poisson Distribution and 40% Cumulative Demand plus Safety Stock
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else if CumulatedForecast(Horizon) is 13 to 15 units then Statistical Safety Stock is 40% Poisson Distribution and 60% Cumulative Demand plus Safety Stock
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else if CumulatedForecast(Horizon) is 16 to 20 units then Statistical Safety Stock is 20% Poisson Distribution and 80% Cumulative Demand plus Safety Stock
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else if CumulatedForecast(Horizon) is greater than 20 units then Statistical Safety Stock is equal to Cumulative Demand plus Safety Stock
Returns Statistical Safety Stock based on the previously listed conditions.
May 15, 2026 Appendix E-2 of E-2