This process is only used where a Replenishment Journal is creating a Purchase Order for the warehouse, a Replenishment data record exists for the warehouse, and the Replenishment Calculation Type is Stock Levels.
Effective Inventory
The system calculates the inventory of the warehouse that is going to be used in the rest of the calculations.
Effective Inventory :=
Inventory
+ Quantity on Purchase Order
- Quantity on Sales Order
+ Quantity in Transfer In
- Quantity in Transfer Out
Reorder Point
If the field Reorder Point is greater than zero and System Suggested Quantity is less than the Reorder Point, then the System Suggested Quantity is set to Reorder Point and Decision is set to Brought up to Reorder Point.
Condition:
System Suggested Quantity < Reorder Point
Result:
System Suggested Quantity = Reorder Point
Maximum Inventory
The field Maximum Inventory works together with the Reorder Point field. Only if the current Effective Inventory is below or equal to the Reorder Point, will the system proceed to calculate the System Suggested Quantity.
If the Maximum Inventory is set larger than the Reorder Point, the system will bring the System Suggested Quantity up to the Maximum Inventory. Otherwise, the system will bring the System Suggested Quantity up to the Reorder Point.
The Decision is set to Brought up to Maximum Inventory.
Note: Zero is NOT a valid number in the Maximum Inventory field.
Condition:
Effective Inventory <= Reorder Point
Result:
Condition:
Maximum Inventory > Reorder Point
Result:
System Suggested Quantity = Maximum Inventory – Effective Inventory
Condition:
Maximum Inventory <= Reorder Point
Result:
System Suggested Quantity = Reorder Point – Effective Inventory