Calculation Type – Stock Levels

It is possible to use the Replenishment module to suggest what to replenish based on Stock Levels. If the actual quantity on stock falls below the Reorder Point, the system will propose a Purchase Order or Transfer Order to fill up to the quantity defined in Reorder Point. If the field Maximum Inventory is set, the fill up will be done up to the quantity defined in Maximum Inventory, otherwise to the Reorder Point quantity.

Stock Levels is a popular calculation method due to its simplicity in environments with a stable demand.

Important: If the selling behavior of the items changes during time, it is important to revisit the fields Reorder Point and Maximum Inventory periodically and adjust them.

Common fields for all Calculation Types

The Replenishment data is stored in the Item, Item Store, or Data Profile Record.

See the Replenishment Data Hierarchy for a review of the storage and hierarchy of Replenishment data.

Below is a list of common Replenishment data fields that are described in Common Replenishment Data Fields.

• Reorder Point
• Maximum Inventory
• Vendor No.
• Purchase Order Delivery
• Transfer Multiple
• Purchase Order Multiple
• Exclude from Replenishment

Field	Description
Reorder Point	If the stock levels go below the Reorder Point, the system will suggest a quantity that will raise it to the Reorder Point.
Maximum Inventory	If the stock levels go below the Reorder Point, the system will suggest a quantity that will raise it to the Maximum Inventory if the Maximum Inventory is filled in; otherwise, the inventory is raised to Reorder Point. Example: If you enter 10 in the Reorder Point field and 20 in the Maximum Inventory field, the Replenishment system will not suggest anything until the inventory drops below 10. If the inventory drops to 8, the system will suggest a quantity of 12 (Maximum Inventory – current inventory) to be ordered.  If the value in the Maximum Inventory field is zero, the system will suggest a quantity of 2 to be ordered.
Replenishment Sales Profile	The system uses the Replenishment Sales Profile to calculate the average daily sales. To enable average daily sales calculation for replenishment calculation type Stock Levels, you need to activate the Calc. Daily Sales for Stock Levels setting in Replen. Setup, under the Average Daily Sales group in the General FastTab.
Consider Consumption as Sales	You can select this field if you want the average daily sales calculation to also include Item Ledger Entries with Entry Type Negative Adjmt. and Assembly Consumption.

See also

Calculation Process for Stock Levels - Stores - to learn more about the calculation process for stores.

Calculation Process for Stock Levels – Warehouse - to learn more about the calculation process for the warehouse.

Calculation Type – Average Usage

Calculation Type – Manual Estimate

Calculation Type – Like for Like