Purchasing must balance material availability, inventory and economic cost. Demand and receipt times are inherently uncertain, so an order has several possible consequences.
POD combines probabilistic forecasts, the current inventory position and an economic policy to compare alternatives and recommend feasible purchases whose costs and risks can be inspected.
POD was strongly inspired by Joannès Vermorel’s Introduction to Supply Chain (Lokad), particularly its approach to decision-making under uncertainty and economic optimization.