What Does TPQ Stand For?

TPQ stands for Threshold Planning Quantity

TPQ, or Threshold Planning Quantity, refers to the predetermined level of inventory that triggers specific planning and replenishment actions within supply chain management. It serves as a critical benchmark for organizations to maintain optimal stock levels, ensuring that resources are allocated effectively to meet demand while minimizing excess inventory and associated costs. By establishing a TPQ, businesses can enhance operational efficiency, improve service levels, and reduce the risk of stockouts.