Determining the Quantity to Order
This topic contains an example to demonstrate how to choose the Reorder Quantity option that will order the number of items you need.
For example, assume you are reordering an item for which the Reorder Quantities form shows the following figures:
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Minimum quantity = 10
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Projected sales = 25
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Maximum quantity = 30
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Reorder quantity = 10
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Quantity on hand = -13
You can order up to the maximum quantity or projected sales (for the period), or over the maximum quantity or projected sales, as follows:
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To order up to, but not exceeding, the maximum quantity, you would order 40 stocking units (4 x 10) bringing the on-hand quantity to 27. (Choose the Up To Maximum option.)
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To order up to at least the maximum quantity, you would order 50 stocking units (5 x 10) bringing the on-hand quantity to 37. (Choose the Above Maximum option.)
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To order up to, but not exceeding, the projected sales quantity for the number of days in the period (selected by the run date), you would order 30 stocking units (3 x 10) bringing the on-hand quantity to 17. (Choose the Up To Projected Sales option.)
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To order up to at least the projected sales quantity for the period, you would order 40 stocking units (4 x 10) bringing the on-hand quantity to 27. (Choose the Above Projected Sales option.)
Go back to Creating purchase orders from Inventory Control reorder quantities