Recommended Reorder Quantity

RECOMMENDED REORDER QUANTITY

If the item is at the recommended reorder level, then this is the quantity that you are being recommended to reorder.

There are three considerations in this calculation.

STOCK ITEMS

If the item is a stock item, then the total quantities sold, manufactured or transferred for the past six months are considered.

A weighting is applied to each month (as determined in a control record) and the total quantity accumulated in the following manner

If a lead time applies then the total quantity = qty sold / no of periods * Lead time/30

If there is no lead time then the total quantity = qty sold / no of periods

NON STOCK ITEMS – Not in a Bill of Materials

This item is not kept in stock, not in a BOM and will only be re-ordered when an order has been placed.  If there is no stock committed to sales the reorder quantity is zero.  If there are sales commitments, the reorder quantity is determined as the quantity committed less that of the stock on hand.

NON STOCK ITEMS – Used in a Bill of Materials

If the item is not a stock item and it is in a BOM then the total quantities sold, manufactured or transferred for the past six months are considered.

A weighting is applied to each month (as determined in a control record) and the total quantity accumulated in the following manner

If a lead time applies then the total quantity = qty sold / no of periods * Lead time/30

If there is no lead time then the total quantity = qty sold / no of periods

Finally if there is stock on hand, the total quantity is reduced by this figure.