Replenish Stock Inventory Based on Sales Rate Routine - Calculation Information

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The following is a breakdown of the calculations used to determine order quantity in the Replenish Stock Inventory Based on Sales Rate routine. Note that the Report Automatic Purchase Order Replenishments topic has further information.  

All items with weekly sales rates calculated lower than the Minimum Sales Rate field in Advanced Vendor Settings are excluded from this report.

Quantity To Order

The Order Quantity column in the Report Automatic Purchase Order Replenishments routine displays the results of the following equation. The variables in the equation are described below.

Quantity To Order = Units Required + Additional Units Required - Units Available - Net PO

If a purchase order’s type has the Include in Supply Calculation field checked, the purchase order is included as a source of supply, thus reducing the quantity that needs to be ordered. If a purchase order’s type has this field unchecked, the purchase order is not included as a source of supply and has no effect on the quantity that needs to be ordered.

Units Required (Required column)

This column is affected by the rounding method set in SALES RATE REPLENISH - Utilize standard rounding for Recommended Order Quantity setting in Purchasing Control Settings. See that topic for more details.

Units Required = Minimum Weekly Supply * Sales Rate

• Minimum Weekly Supply

Minimum Weekly Supply = Minimum Days Supply / 7

- Minimum Days Supply hierarchy:

• 1. Advanced Vendor Settings, General Tab - Minimum Stock Days field > Action button > Group Exceptions option

  2. Advanced Vendor Settings, General Tab - Minimum Stock Days field > Action button > Category Exceptions option

  3. Advanced Vendor Settings, General Tab - Minimum Stock Days field

• Sales Rate

Units Sold = Units Returned for the number of weeks defined in the Advanced Vendor Settings – Weekly Sales Rate Calculation

- Written business uses BTA Business transaction analysis. file

- Delivered business uses PRODUCT.HISTORY file (which is a guesstimate since numbers are stored per month, not by week).

Additional Units Required (Additional column)

This column is affected by the rounding method set in SALES RATE REPLENISH - Utilize standard rounding for Recommended Order Quantity setting in Purchasing Control Settings. See that topic for more details.

Additional Units Required = Additional Weekly Supply * Sales Rate

• Additional Weekly Supply

Additional Weekly Supply = Lead Days / Days Per Week

- Lead Days hierarchy:

1. 1. Vendor Ship-From Settings – Purchase Lead Days

   2. Regional Processing – Regional Vendor Settings – Lead Time

   3. Advanced Vendor Settings – Group Exceptions – Lead Days

   4. Advanced Vendor Settings – Category Exceptions – Lead Days

   5. Advanced Vendor Settings – Purchase Lead Days

   6. Vendor Settings – Average Lead Time

- Days Per Week

* 5 if PO ACF – Exclude Weekends in Vendor Lead Days field checked

* 7 if PO ACF – Exclude Weekends in Vendor Lead Days field unchecked

• Sales Rate

- Same rate as defined above

Units Available (Available column)

Units Available = Warehouse Quantity on Hand The total quantity of inventory-type items physically in the warehouse. – Warehouse Quantity Committed

Net PO Quantity (Net PO column)

Net PO = Warehouse Quantity on Order

• Advanced Vendor Settings – Include All Back Orders field checked

- Subtract Warehouse Quantity Uncommitted

- Inventory Control Settings – Layaway A sales transaction in which a customer leaves a deposit to reserve specified merchandise. in Net Purchase Order field checked

* Subtract Warehouse Quantity on Layaway

• Advanced Vendor Settings – Include All Back Orders field unchecked

- Subtract sold-but-not-reserved items with either an estimated/scheduled delivery date within the order item's auto-fill days or with a delivery status of ASAP

- Add transfers coming in within fill days