Question: For periodic order quantity ( POQ ) : When calculating the first planned order quantity, subtract the projected inventory level from the demand over the

For periodic order quantity (POQ):
When calculating the first planned order quantity, subtract the projected inventory level from the demand over the next n periods.
Use that quantity as the POQ.
Example:
A replenishment order of 100 is needed to satisfy the demand for the next 3 periods. If 10 items are left from the initial inventory,
subtract the 10 items and order 90(i.e., POQ =100-10=90). At the end of the demand period, there should be no items left in
inventory. This minimizes the number of items carried in inventory.

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