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MRP glossary TOP > Inventory Control > Reversal

Reversal

Inventory items which were issued out of a warehouse may be sent back there even if they are non-defective items, which are called Reversal. The possible cases are as follows:
* The case in which more quantity of item was issued by mistake
* The case in which anticipated failure rate was higher than the actual one
* The case in which a change in order occurred, e.g. a decrease in order size or stopped order
* The case in which an urgent change in plan occurred after issuing items
In these cases, the reversed items are handled as an unscheduled receive


Related term: Unscheduled Receive/Issue

Reference:JIT Business Research Mr. Hirano Hiroyuki

Reorder Point | Inventory Control | Safety Stock