Do you lose sales because you're out of stock? Improve the control of your inventory and replenish stock without over purchasing. Enhancement OSL - Auto POs with Stocking to Reorder Level treats the Reorder Level as a target stocking level and orders the difference between the balance on hand and the Reorder Level.

Normally, Auto POs calculate the amount to order using a Reorder Level and a Reorder Quantity. When the balance on hand falls below the Reorder Level, the Reorder Quantity is ordered.

example 1:

 Item........................: Widget
 On Hand.....................:   5
 Reorder Level...............:  15
 Reorder Quantity............:   5

The usual calculation would order five widgets. But this would still leave you five short.

With OSL - Auto POs With Stocking to Reorder Level, the quantity ordered would be a multiple of the Reorder Quantity which brings the balance on hand to the reorder level or above. For the Widget example, the quantity ordered would be 10, but if the balance on hand was less than five, the quantity ordered would be 15. Below is a table of Reorder Quantity calculations for the example above:

        Balance    On Hand    OSL Orders
        Between    0 and 4    15
        Between    5 and 9    10
        Between   10 and 14    5

When you use a conversion factor, the Reorder Level is in selling units and the Reorder Quantity is in receiving units. If you submit your orders as 1 Case of 5, instead of ordering 5 items, you must set up your inventory file differently.

example 2

 Item.........................:  Widget
 Receiving Unit....................:  CASE
 Selling Unit......................:  EACH
 Conversion Factor.................:  5
 Reorder Level.....................:  15
 Reorder Quantity..................:  1

The above will order the same number of units as the first example, but the order quantity will be in cases.

Technical Notes:

Balance on Hand is calculated by subtracting pending items on Sales Invoices and adding unreceived items on Purchase Orders. This adjusted "Balance" is subtracted from the Reorder Level to determine the order quantity. If necessary, the order quantity is increased to make it a multiple of the Reorder Quantity. If the adjusted "Balance on Hand" is negative or zero, the quantity ordered will be more than the Reorder Level.