Re-Order Logic

Purchasing (PO) > PO Overview > PO Recommendations Report Logic

Re-Order Logic

The PO Recommendations Report uses the following logic when creating requisition lines.

• The report first calculates the “needed” quantity for the item. The needed quantity is determined by adding the current quantity on hand for the item to the current on order quantity for the item, and then subtracting the current reserved quantity for the item. If the result is less than zero, then the item needs to be ordered, and the negative quantity is multiplied by –1 to determine the needed quantity for the item.

• The report checks the reorder information (reorder point and reorder quantity) that has been entered for the item in the Inventory Master file, and uses this information to calculate the recommended quantity for the item. The recommended quantity is the quantity of the item that needs to be ordered to fill current sales and shop orders for the item and to meet the minimum stocking quantity defined for the item (the reorder point).

• The report uses the Cost selected by the operator to determine the default PO price for each item. The Cost options that are available include.

A – Average

L – Last

N – Next

S - Standard

Sales, Demand, Usage, Production, and Consumption Statistics