SKULabs makes reordering easy by auto-populating the "Quantity" field when creating purchase orders.
To set up reorder rule, navigate to Purchase Order Settings page, enter the reorder rule and save at the top right corner.
Setting a Reorder Rule:
SKULabs offers a customizable reorder rule formula that can be adjusted to suit your reordering strategy using the following variables:
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: The total quantity of an item that has been sold according to the "# days sold" filters option within the PO Add item table.
num_days_sold: This matches the "# days sold" filter in the interface.
velocity: This is
sold / num_days_sold unless optimistic forecasting is enabled.
days_left: This is
free / velocity but takes into account incoming POs due to arrive before you stock out.
contiguous_free: This is
days_left * velocity You can use this for a realistic view of the future inventory for this SKU without ever stocking out based on current velocity and incoming POs.
days_on_sale: This is used to calculate optimistically only the days you had sales. This is NOT the days you were in stock, just the number of days a single sale was made.
Note: The replenishment transfer order tool can only utilize a subset of these parameters but reach out to us for help improving your replenishment orders.
Every company has different reordering strategies. Finding the right reorder rule for your needs can be done in a number of ways, here are some common recommendations:
NEW! 30 days of inventory less existing POs
Use this suggested rule to forecast 30 days of sales across all products minus inventory your have and ALL open POs. This rule is safe against over-ordering.
Math.max((velocity * 30) - free - incoming, 0)
NEW! 60 days of inventory minus inventory you'll receive before you stock out.
While we don't yet have your lead time and shipping time available per SKU to calculate, we will soon! Use this suggested rule to forecast 60 days of sales across all products minus the total inventory you have and will receive by your calculated stock_out date. This rule can cause over-ordering but is a powerful tool to ignore POs due next year when you're calculating inventory for today.
Math.max((velocity * 60) - contiguous_free, 0)
Target Reorder Point
Reorder Point: Set your reorder point equal to the multiple of maximum units sold per day and maximum lead time. This calculation factors in safety stock, which is stock that would be needed in case of delayed PO delivery and unexpected sales spike.
NOTE: It is best practice to account for safety stock, particularly when implementing a lean or just-in-time inventory management strategy.
Set your items' stock alert levels equal to their desired reorder points and then use the following reorder rule:
Math.max(alert - (free + incoming), 0)
Target backordered stock
Back-ordered stock: Equal to the amount of stock customers have ordered but have not yet received because the products are currently out-of-stock.
For businesses that allow backorderering, target backordered stock needed to fulfill open orders by using this rule:
Math.max(0 - (free + incoming), 0)
Advanced reorder rule
How to create a purchase order