SKULabs makes reordering easy by auto-populating the "Quantity" field when creating purchase orders.
To set up re-order rule, navigate to Purchase Order Settings page, enter the re-order rule and save at the top right corner.
Setting a Re-order Rule:
Since different businesses implement varying reordering strategies, SKULabs offers a re-order rule that is customizable to suit your reordering strategy using these variables:
on_hand, reserved, free, incoming, alert, sold
On_hand: currently available physical inventory.
Reserved: stock allocated/reserved by open orders awaiting fulfillment.
Free: the net quantity of freely available stock (on_hand - reserved)
Incoming: stock expected to be received from open purchase orders.
Alert: desired stock threshold to replenish stock
Sold: This count represents the total quantity of an item that has been sold over the # days sold provided under the filters for the the PO Add item table.
Re-order point: equals the multiple of maximum units sold per day and maximum lead time (factoring in emergency delays).
Safety stock: equals to stock that would be needed in case of delayed PO delivery. It is roughly the multiple of maximum daily sales and maximum delay time.
Back-ordered stock: equals to the amount of stock customers have ordered but have not yet received because it's currently out-of-stock
Target a re-order point
Set items' stock alert levels to equal to re-order points and use re-order rule as follows:
Math.max(alert - (free + incoming), 0)
Target a re-order point with safety stock
It's best practice to reserve safety stock just in case of unexpected sales spike or a delay in PO delivery time, particularly when implementing a lean or just-in-time inventory management strategy.
Set items' stock alert levels to equal to re-order points. Then, determine a safety stock factor, and one way to determine a safety-stock factor is as a percentage of available stock (free + incoming). For instance, if you use a safety stock factor of 15%, the re-order rule would be:
Math.ceil(Math.max(alert - (free + incoming) * 0.15, 0))
Target backordered stock
For businesses that allow to backorder, target backordered stock needed to fulfill open orders by using this rule:
Math.max(0 - (free + incoming), 0)