Itemwise Recommended Reorder Level

Itemwise Recommended Reorder Level looks at how much of each item was consumed over a period you choose, works out the average daily consumption, and multiplies it by the item's lead time to suggest the stock level at which a new order should be raised. Consumption is taken from outgoing Stock Ledger Entries such as Delivery Notes, Material Issues and Manufacture consumption, so the suggestion reflects real demand, not plans. Compare the suggestion with the Reorder Level set on the Item: a fast mover with a low level runs out, a slow mover with a high level ties up cash. Update the Item's reorder settings from the result once a year or after a season.

Recommended reorder level = (total qty consumed in the period / days in the period) x lead time days

1. 01Go to Stock > Itemwise Recommended Reorder Level.
2. 02Set From Date and To Date covering a representative period, such as the last fiscal year.
3. 03Filter by Item Group or Brand if needed.
4. 04Read Consumed Qty, Avg Daily Consumption, Lead Time Days and Reorder Level.
5. 05Open each Item, Inventory tab, and set Reorder Level and Reorder Qty from the suggestion.
6. 06Check Items To Be Requested next week to see the new levels working.

Open yearly to reset minimum stock levels on fast and slow movers.

An item consumed 120 units a year with a one month lead time gets a reorder level of about 10.