Reorder Level Settings

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Last updated: Feb 17, 2012 by Kristy ShermanVersion comment
3 min read

Overview
The reorder level settings from the configuration tab (POS settings), establishes the levels for items to appear on the Reorder Level Report. These settings at the Configuration screen overrides the reorder levels set at the item level. Reorder levels can be calculated by one of three ways (fixed quantity, sales period, or daily sales average). Pre-setting the reorder levels allows the user to quickly determine what items need reordering based on the criteria they have selected that best suits their business practice. 

PLEASE NOTE: Date range must exceed same day range: start and end day must not be the same date for Daily Sales Average.

Details

There are three types of Reorder Level Settings:

Daily Sales Average:

Daily Sales Average takes the average of a set time period to determine which items to be reordered

When the daily sales average mode is selected for the domain/venue/store, the master item screen does not need to have min/max levels set. For the item to be considered, it must have a sale or refund during the time period specified. When a PO or STO is present for the item, the reorder level will be affected. The order level will go up if a sale is made and go down with PO and STO's. 

If the sales in the specified period are greater than the QOH then the item will be in the Reorder Report. The time period must not be same date (start and end date cannot be the same day)

If the lot size multiplier is set, the closest higher end figure of the reorder level which is the multiple of the lot size multiplier is displayed.

The reorder levels for Daily Sales Averages are as follows:

Example:
July 1st  to July 09th     
Date range  = 8 Days
No. of Days = 30
Sales = 70
QOH = 40
PO Pending = 65
STO Pending = 20

AVG = 70/8 = 8.75

8.75*30 days   =263  

Formula: # of the item sold – QOH – PO - STO

263 - 40 - 65 - 20 = 138

138 items need to be reordered

Rounded to the closest lot size multiplier.

Fixed Quantity: 

Fixed Quantity allows to user to set specific items and quantities for reorder. Minimum and maximum levels are only used for determining reorder levels.

When fixed quantity mode is selected for domain/venue/store, the Master Item should have the minimum, maximum and reorder levels established.
When the item is sold the reorder quantity goes up, if the item is in a PO or STO the reorder quantity comes down. The item may or may not have sales.
The min and max level range is established and when an items QOH falling below the min level, the item will be reported on the Reorder Level Report. The reorder level given in master item table would be added or subtracted accordingly.

If QOH is less then min quantity then Reorder level = Max Quantity - QOH - Pending Purchase and Store Orders

The Re-order qty will be adjusted to make the qty less than the maximum order qty and in quantities consistent with the lot multiplier (the lot size multiplier closest to the maximum quantity without exceeding the maximum quantity).

The PO and STO are considered for store or warehouse levels only. Not for venue level reorders.

Formula:

Maximum Level-QOH-Pending PO-Pending STO  (The number should be to the nearest factor of Lot sizer multiplier)

Example:
Minimum Level: 10
Maximum Level: 500
Lot size Multiplier: 3
Min Order Qty      : 24

Let us assume that for item 1 QOH is   9 then it is under Minimum Qty then Re-Order qty will be calculated.

Pending PO: 70
Pending STO: 30
Maximum Level-QOH-Pending PO-Pending STO=500-9-70-30
=400
400 is greater than Minimum Order and this is not multiplier by 3 so it will be adjusted to 402.

If the qty we got from the formula is not greater than the minimum order qty then Qty will be adjusted to make it greater than the minimum order.

Sales Period:

The daily sales average mode is selected for the domain/venue/store, the master item screen does not need to have min/max levels set. For the item to be considered, it must have a sale or refund during the time period specified.
When a PO or STO is present for the item, the reorder level will be affected. The order level will go up if a sale is made and go down with PO and STO's.

If the sales in the specified period are greater than the QOH then the item will be in the Reorder Report.

If the lot size multiplier is set, the closest higher end figure of the reorder level which is the multiple of the lot size multiplier is displayed.

Access - Access is set at an Enterprise level by default.