Recommended order quantities (ROQ) for raw materials (RM) are calculated in the same manner as the ROQ for any other item (see article recommendation below). The current stock position of the RM is checked against the ordering levels to determine whether it’s time for an order to be placed, and if so, for what quantity.

The BOM forecast, as well as any other relevant demand streams, will be used to determine the ordering levels.

You might also be interested in searching the following: