Acumatica Inventory Replenishment

Summary

The Acumatica replenishment feature enables you to determine the Reorder Point and  the Order Quantity different ways for an item.

Each way is dependent on the type of demand pattern (high turnover versus slow turnover) you have. Our company will analyze your demand pattern, and determine the best way to determine the Reorder Point and the Order Quantity.

This replenishment feature also enables you to specify automatic creation of Purchase Orders in order to avoid shortages.

Details

The video below discusses two ways to determine the Order Quantity:

  1. Order Quantity = Max Stock Level/Quantity - Reorder Point

  2. Order Quantity is a fixed quantity that is based on the demand (Sales Orders, shipments made,..)

    1. Using the  demand forecasting method of moving average to determine a fixed order quantity, and a service level of eg, 84% maybe a safe approach.​

      1. For instance if your last 3 weeks demand was 40, 30 and 20, you moving average for the last 3 weeks would be 90/3 = 30. ​

      2. Using a service level of 84%, your order quantity will be 30*0.84= 25.

      3. Your order quantity for next week would be 25 if you still have a minimum stock (reorder point) of eg 20. Else if you stock level will become depleted, you need to order 45. 

      4. If you foresee a spike in demand, you can apply a seasonality index of eg 1.5, which would make your order quantity 25 * 1.5 = 37.

      5. You really need to make a chart of your future demand as much as possible every week. Acumatica enables you to export your future Sales Orders from a Generic Inquiry to Excel. 

      6. The more frequent you order, the more shipping costs or manufacturing cost you will incur. You will want to compare the increase in shipping costs versus the cost of a stock shortage and a higher stock level. 

You will see how you can specify automatic creation of Purchase Orders in order to avoid shortages.

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