Advanced Reordering Formulae
The calculations carried out in the Advanced Reordering Screen use the following formulae:
Average Demand
Average = (Total number of items sold during the period being reported on) / (Number of periods being reported on x reorder period for the item)
Notes:
1. Average is held as raw data but is displayed to 2dp2. Sold means sold and issued
Reordering Date
Reordering Date = ((Qty available + On Order - Back Orders) / Average Demand) minus (Reordering Point / Average Demand)[rounded down] = Reordering Date [rounded up]
Reordering Point
Reordering Point = (Lead Time + Reorder Point) x Average Demand
Buffer Level and Quantity to Order
(Buffer + Lead Time) x Average Demand - Qty Available - On Order + Back Orders = Qty to Order [rounded up to nearest whole number on purchase order]