Desired Quantity & Reorder Level

Updated October 1, 2023

Applies to : Material Inventory and Finished Goods Items

Desired Quantity and Reorder Level work together to provide information for the Reorder Report. The Reorder Report is a method by which users can be alerted to Inventory that is below predetermined amounts. 

 

It is required that both fields are populated in order for them to be included in the Reorder Report.

 

Inventory Material Reorder Level and Desired Quantity

 

Finished Goods Item Reorder Level and Desired Quantity

 

Reorder Level : When the On Hand Quantity for the Material Item falls at or below the Reorder Level the system will flag it to be included in the Reorder Report.

Desired Quantity : When the Reorder Report is generated the system uses the following formula to determine the suggested amount to purchase on the Reorder Report.

 

IF On Hand Quantity - Quantity Allocated + Quantity on Order < Reorder Quantity 

then the Suggested Purchase Amount = Desired Level - (On Hand Quantity - Quantity Allocated + Quantity on Order)

 

Example;

On Hand Quantity : 1,375

Quantity Allocated : 375

Quantity on Order : 2000

Reorder Level : 5,000

Desired Level : 10,000

Amount suggested on Reorder Report : 7,000

 

NOTE The Reorder Report must be run manually. Any material purchases will also need to be made manually by the user. The system will not automatically generate a Purchase Order for low inventory.