What can be done to ensure you receive full pallets from an external supplier?

Using the fixed lot size procedure is an effective strategy to ensure that you receive full pallets from an external supplier. This approach allows you to set a consistent order quantity for your inventory replenishment, which is especially important when dealing with suppliers who may have specific packing and shipping requirements for full pallets. By committing to ordering in fixed lot sizes that match the supplier's shipping practices, you can streamline procurement and ensure that you receive your goods as intended, minimizing the chances of partial deliveries.

Ordering in fixed lot sizes helps to optimize inventory levels, reduce handling costs, and improve overall supply chain efficiency. It also encourages suppliers to align their production and shipping processes with your ordering patterns, resulting in a more predictable flow of materials.

In contrast, the other strategies, such as vendor managed inventory, minimum order quantity, and reorder points, may not guarantee full pallet deliveries as effectively. Vendor managed inventory typically allows the supplier to manage stock levels but does not ensure specific lot sizes. Minimum order quantities might not correspond to full pallets, and reorder points are more focused on inventory thresholds rather than aligning with specific shipping quantities from suppliers.