ROQ / Reorder Quantity

Definition

Practical replenishment quantity considering stock, max level, MOQ and pack size. This reference is designed for practical industrial stores, MRO, production and materials-management environments.

Objective

Translate the control target into an executable purchase quantity.

Scope

Apply the method at item, category, location or plant level as appropriate. The control should connect planning, purchasing, stores transactions, physical verification and management review.

Required Inputs

Maximum stock
inventory position
MOQ
pack size
open orders
consumption.

Methodology

Define the business requirement, scope and review period.
Validate item master, consumption, stock and open transaction data.
Calculate or classify using the defined method.
Compare the result with criticality, supplier constraints and future demand.
Assign an action owner, due date and review frequency.
Monitor KPI movement and revise parameters when conditions change.

Formula / Control Logic

ROQ = Max Stock − Inventory Position; then adjust to MOQ/pack size and approved lot constraints.

Worked Industrial Example

Max 3,000, inventory position 1,900 and pack size 100 gives 1,100 units.

Decision Rules

Use inventory position rather than on-hand where appropriate.
Apply MOQ and order multiples after calculating need.
Document overrides.

Industrial Controls

Authorized master-data and parameter changes
ERP transaction discipline and document traceability
Physical verification and reconciliation
Exception reporting with named ownership
Periodic management review of ageing, service and capital exposure

KPIs

Service

Availability, fill rate and stock-out performance.

Accuracy

Book-to-physical reliability and transaction quality.

Capital

Turnover, coverage, ageing, excess and dead stock.

Common Errors

Ordering Max − On-hand when open PO exists.
Ignoring allocated stock.
Rounding down below required quantity.

Excel / MIS Application

Useful fields: Item Code, Description, UOM, Opening Qty, Receipt Qty, Issue Qty, Closing Qty, Unit Rate, Annual Consumption, Current Stock, Open PO, Lead Time, Safety Stock, ROP, Min, Max, ROQ, ABC, VED, FSN, Ageing, Action.

Management Review Questions

Which items require action now, and why?
Are open orders aligned with actual requirement?
Which exceptions are recurring and what is the root cause?
Which parameter should be changed, and what evidence supports the change?

Related Inventory References

Professional practice: A calculation is a control aid, not a substitute for engineering judgement, approved policy, physical verification or business-risk assessment.