Effectiveness of the Order Point Technique
Figure 10.3.1.1 shows the famous saw-tooth-shaped curve that is characteristic of the order point technique. You can view the curve on the Internet, implemented with Flash animation, at the following URL:
www.intlogman.lim.ethz.ch/order_point_technique.html
Explore the changing shape of the inventory curve for continuous and less continuous demand (moving your cursor over the gray icon executes your input choice). Try out different parameters to calculate lot size and service level. Try other consumption values. Observe the effect of the consumption values on the order of the production or procurement batch size. Again, touching the "calculate" icon executes your input choice. The initial demand values are automatically reentered by moving your cursor over the gray demand shape icon.