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Reorder/Restock

I'm having some problems getting my reorder points and restock levels with my new RMS installation.

I had intended to set reorder points at the average number sold in the time it takes for a supplier to fill an order. By this I mean that if we place an order on Tuesday and it's delivered on Thursday, I'd set the reorder point just high enough to cover that span of time. I figure that that way we'd know that we need the item and the replacements will come in time.

I set my restock level to the number of SKUs we sell in the primary supplier's ordering cycle. If we sell 10 a week and we order every week, my restock level would be 10. I figured this would work, assuming MPQ is not an issue.

However, this is resulting in erratic and unusable POs when I tell RMS to generate them based on sales.

Anyone have any insight into what I've messed up?

Reply to
Dhruva
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If you reorder based on 'sales' RMS does not use the restock/reorder levels, it uses past sales data for the period you specify. You must order based on 'reorder information', then it should work.

Also, you may be cutting it really close setting your restock level at actual average sales for the week. I hate to lose sales because I am out-of-stock. Personally, if I order every week, I keep 2 weeks stock.

Marc

Reply to
Marc

Marc, thanks a lot for that advice. I generated an invoice for my primary supplier based on sales. I chose the option of a specific supplier -- my main one.

The system generated six purchase orders. The one for my main supplier totalled $18,010. My average weekly purchase from that supplir is around one tenth of that. Clearly, I can't use what RMS generated.

Do you know how I can adjust the behavior of this process?

Thanks

"Marc" wrote:

Reply to
Dhruva

Dhruva, As Marc stated, if you want to order based on the reorder information you supplied for each item under the Inventory tab you want to select 'Generate based on re-order information. Not 'Generate based on items sold between the following dates' . I use this function all the time, and as long as you have the 'Restock level' and 'reorder point' and 'MPQ quantity' set up properly, it works flawlessly. Keep in mind, if you have MPQ set up under the Supplier tab, that will be the quantity ordered for that item regardless of what your restock level is set at. So, if you have the restock level set at 10, but your MPQ is set at 25, the system will order 25, not 10. Craig

Reply to
Craig

Craig's post may have already answered your question but ....

What kind of period did you tell RMS to base sales on? I would guess that is where the problem is. If you only want a week, you must specify a one week date range of past sales to base the order on. You should also be able to generate a single PO for a single supplier. Use SELECTED supplier in the last option box to limit the number of PO's generated.

Marc

Reply to
Marc

Thanks to Marc and Craig for your info. Can anyone please explain the difference between two of the system-generated POs?

What I mean is "generate based on re-order information" and "generate based on items sold during the following dates."

Unfortunately, neither is producing meaningful results on my newly installed system.

Thanks for any insights.

"Marc" wrote:

Reply to
Dhruva

Hi Dhruva -

Generating a PO based on reorder information looks at the restock levels and reorder points assigned to your items in the inventory tab of an item's properties. Many people relate to this better as "maximum" and "minimum" inventory levels, where the restock level is the maximum amount you want to have in stock and the reorder point is the "trigger" point that will place the item on a PO, once its quantity falls below the reorder point.

Generating a PO based on sales information allows you to replenish the exact amount sold over any time period you select. This is useful for retailers that must replenish what they sell and usually have items that can be reordered and have a long shelf life (ie canned goods). Let's say you sold

10 of an item during the last week and you run the PO based on "qties sold on following dates" you will create a PO for that item where you will order qty

  2. A critical comp> Thanks to Marc and Craig for your info. Can anyone please explain the

Reply to
convoluted

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