Reordering equation (min/max)

Overview

Finale's reorder capabilities provide an efficient way to generate purchase orders and replenish stock. The reorder capabilities are optional as purchase orders can be created and populated manually or imported from Excel as well. The reorder function is helpful in preventing stock outs and maintaining ideal stock levels.

Basic reordering equation

The basic reordering equation calculates the amount to reorder for each product. The amount is based on the quantity available at each location and the reorder threshold (called the reorder point). The difference between the reorder point and the quantity available is the amount to reorder.  

 Basic reorder amount = reorder point - quantity available

The reorder function can also take into account two optional parameters: reorder max and reorder in quantity of.

The location available is the quantity on hand, plus committed purchase orders that have not been received or are partially received, minus committed sales orders that have not been shipped :

 Location available = QoH at location + quantity on order - quantity reserved

Reordering takes into account any committed purchase orders as well, so Finale will not order quantity that is already on order (unless more is needed).  Note, editable orders are NOT considered "on order quantity" and will not affect the reorder number.  It is recommended to always make sure all actual orders are in committed status before creating a reorder purchase.