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MRP glossary TOP > F > Fixed Order Quantity

Fixed Order Quantity

Fixed Order Quantity FOQ

It is a method to fix the quantity for sizing, and is called FOQ for short. In this method, the Net Requirements are sized by setting FOQ value as an Order Quantity mainly based on the empirical value, and fixing the quantity, as shown in the figure. When the Net Requirements within one period are over FOQ value, two ways are possible: the quantity of Net Requirements is used as the order quantity, or the order quantity is obtained by multiplying FOQ value.

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Related term: Lot Sizing

Reference:JIT Business Research Mr. Hirano Hiroyuki

Fixed Cost | F | Fixed Period Ordering System