Which three replenishment count types are used for Periodic Automated Replenishment (PAR)?

Question

Options

• AOrder Economic Quantity (EQQ): Generates a replenishment request for the calculated quantities
• BReorder Point: Generates a replenishment request for the order quantity based on days of cover
• COrder Quantity: Generates a replenishment request for the order quantity entered for the
• DOrder RAR: Generates a replenishment requisition for the RAR-level quantity.
• EOn-hand Quantity: Generates a replenishment requisition for the difference between the on-hand

Explanation

Based on standard Periodic Automated Replenishment (PAR) systems (as used in Oracle Inventory Management), the three correct count types are B, C, and E.

Reorder Point (B) triggers replenishment when stock falls to a defined threshold, calculating order quantity based on days of cover. Order Quantity (C) replenishes a fixed, predefined quantity regardless of current stock levels. On-hand Quantity (E) is the most characteristic PAR method - it generates a requisition for the difference between the established PAR level and actual on-hand stock, topping inventory back up to the target.

Option A is wrong because "EQQ" misrepresents Economic Order Quantity (EOQ), and EOQ is a standalone inventory optimization formula - not a PAR count type. Option D (Order RAR) refers to Replenishment Authorization Requests, a separate replenishment mechanism distinct from the PAR framework.

Memory tip: Think of PAR as a three-step toolkit - When to reorder (Reorder Point), How much to always order (Order Quantity), and Fill the gap to target (On-hand Quantity). The mnemonic "RQH" (Reorder, Quantity, on-Hand) can help you recall all three on exam day.

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