Calculate Reorder Points

The Calculate Item Reorder Points tool (Inventory -> Items) can examine sales over a given time period and apply the average sales per month towards suggestions for updating minimum, maximum, and reorder quantities for items (manually editable by clicking Add/Edit Pricing & Location when editing items). You will need to check the Save box for each line that needs updated and click the Save button after suggestions are presented to modify min/max/reorder settings in the system.

For example, if you want to update min/max/reorder levels for a certain category of items based on sales the prior year, set the Begin Sales Date to January 1 of the prior year and set End Sales Date to December 31 of the prior year.

The system will look up the total quantity of items sold that year and divide by the number of months in the date range to arrive at an Avg Sales Qty. Per Month value.

The list will show the current min/max/reorder levels and use the fields Number Of Months For Minimum On Hand, Number Of Months For Maximum On Hand, Number Of Months For Reorder Quantity to give suggestions for new values.

• Suggested Minimum = Avg Sales Qty. Per Month * Number Of Months For Minimum On Hand
• Suggested Maximum = Avg Sales Qty. Per Month * Number Of Months For Maximum On Hand
• Suggested Reorder = Avg Sales Qty. Per Month * Number Of Months For Reorder Quantity

* One exception to the above formulas is if the location is a Distribution Center (Distribution Center Reordering add-on). In that case Avg Xfers Qty Per Month will be used instead of Avg Sales Qty. Per Month.

You can limit the items that will be displayed by setting a Min Avg Sales Per Month value. Only items that sold a quantity higher than Min Avg Sales Per Month will be included.

You can change the suggested values as needed before saving.

Remember to check the box in the Save column for any items that you want to update.  Click Save when done.