The formula to calculate for the quantity of each item that shows on the Items to Order page if the Replenishment Method = Reorder Point:
(Preferred stock level + quantity needed ) less (quantity available + quantity on order )
Where:
A. Quantity Needed = The Quantity on Sales orders* and Transfer Orders.
*Quantity on Sales Orders are the ones in back order (Quantity Back Ordered) and not committed on the sales order.
B. Quantity Available = Quantity On Hand - Quantity Committed
C. Quantity on Order = Quantity on Purchase orders
D. Preferred Stock Level - This is found on the Inventory tab > Inventory Management portion on an item record.
The preferred stock level is the optimum quantity to maintain in stock of an item.
The quantity you enter here is used to determine your replenishment needs on the Order Items page. It is the quantity you want to have in stock after an order is placed.
- Auto-Calculating – Check the Auto-Calculate box if you want NetSuite to calculate the preferred stock level based on demand for the item.
The preferred stock level is calculated as:
(daily demand * number of days supply preferred).
If no preferred stock level is identified, then the default preferred stock level is used from the Set Up Inventory Management page.
- Manually Calculating – Clear the Auto-Calculate box to manually enter the preferred stock quantity.
If the Item is using Demand Planning and the Replenishment method is set to Time Phased this formula will not apply. Demand Planning uses demand plans and supply plans to configure replenishment for items set to use the Time Phased replenishment method.
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