System Values - Purchasing - Reordering and Safe Level
Table Of Contents
Overview
The Reordering & Safe Level settings control how Khaos Control calculates stock replenishment requirements and reassesses Safe Levels based on historical demand.
These settings directly affect purchasing recommendations and stockholding levels. Incorrect configuration can result in over-ordering, under-ordering or inaccurate stock recommendations.
Warning: Changing these settings may cause unexpected results in your stock replenishment processes. If you are unsure about any option, please speak to the Khaos Support Team before making changes.
Reordering Settings
The following settings are used within:
[ Stock | Reordering | Reordering (Standard) ]These options determine how Khaos Control calculates the Quantity to Order for stock items that fall below their Safe Level or Minimum Level.
Stock Reordering Base Value
This setting determines the base value used when calculating the suggested quantity to order.
Reorder Qty (Default)
The suggested quantity is taken from the stock item's configured Reorder Quantity.
This value is sourced from:
[ Stock | Detail | Properties ]→ Reorder (q)
Or, when filtering by supplier:
[ Stock | Detail | Suppliers ]→ Reorder Qty
This is the default and most commonly used option.
Safe Level
The suggested quantity is based on the stock item's Safe Level.
If both Safe and Minimum grids are displayed in the Reordering screen:
- The Safe grid uses the Safe Level.
- The Minimum grid uses the Minimum quantity.
If Use Backorders in Calculations is enabled, the backorder shortfall is included in the suggested quantity.
Example
If a stock item has:
| Value | Quantity |
|---|---|
| On Order | 10 |
| Available | 0 |
| Backorders | 7 |
| Safe Level | 10 |
| Reorder Multiple | 2 |
The calculated quantity to order would be:
8
Without backorder calculations enabled, the suggested quantity would simply be:
10 (the Safe Level)
Nothing
No default quantity is suggested.
The Quantity to Order remains zero unless Use Backorders in Calculations is enabled, in which case the backorder quantity is suggested instead.
Round to Reorder Multiple
Default: Enabled
Controls whether suggested order quantities are rounded to the next reorder multiple.
When Enabled
If a stock item has a Reorder Multiple defined, Khaos Control rounds the quantity up to the next valid multiple.
Example
| Calculated Requirement | Reorder Multiple | Suggested Quantity |
|---|---|---|
| 11 | 20 | 20 |
When Disabled
The system uses the exact calculated quantity, regardless of any Reorder Multiple settings.
Use Backorders in Calculations
Controls whether outstanding backorders are included when calculating suggested purchase quantities.
When Enabled
Backordered stock is taken into account using the following calculation:
Quantity to Order = Back Orders − On Order − Available
This helps ensure enough stock is purchased to satisfy existing customer demand.
When Disabled
Backorders are ignored when calculating replenishment requirements.
The calculation becomes:
Quantity to Order = On Order − Available
Rollup Minimum Order Quantity (MOQ)
Default: Enabled
Controls how Minimum Order Quantities are checked.
When Enabled
The Minimum Order Quantity is evaluated against the combined quantity of the stock item across the purchase order.
When Disabled
The Minimum Order Quantity is checked against each individual line.
Example
A supplier has a Minimum Order Quantity of 20.
Two purchase order lines are added:
- Line 1 = 5 units
- Line 2 = 15 units
Result:
| Setting | Outcome |
|---|---|
| Enabled | Passes MOQ check (total = 20) |
| Disabled | Fails MOQ check (each line below 20) |
Include Waiting QC in Reordering Calculations
Controls whether stock currently awaiting Quality Control (QC) is considered available stock.
When Enabled
- QC quantities are displayed in the Reordering screen.
- The quantity awaiting QC reduces the suggested quantity to order.
When Disabled
- Stock awaiting QC is ignored.
- The quantity to order is calculated without considering those items.
Stock Reordering Date Filter
Determines which date filter is used within the Advanced Reordering report.
The selected option controls how historical data is filtered when generating reordering recommendations.
Reordering (Standard) Sales Period
Defines the time period, in days, used for sales analysis within Standard Reordering.
The value controls the data shown in the Period Sales Qty columns.
Note: These columns are hidden by default and must be enabled through grid configuration before they are visible.
Safe Level Settings
These settings are used when updating Safe Levels through the Safe Level Reassessment process.
For more information, see: How To: Update Stock Safe Levels based on Past Sales
Max Number of Months Sales to Assess
Default: 12
Determines how many months of historical sales data are analysed when calculating a new Safe Level.
The system:
- Reviews sales for the specified number of months.
- Calculates an average monthly sales quantity.
- Uses that figure to determine a revised Safe Level.
If the stock item was created more recently than the specified period, the system uses the available sales history instead.
All Sales Orders / Issued Sales Orders
Controls which sales transactions are included in the Safe Level calculation.
Issued Sales Orders (Default)
Only completed sales are included.
This reflects actual customer demand.
All Sales Orders
Both completed and outstanding sales orders are included.
This reflects actual and potential demand.
Include Return Credits and Exchanges
Default: Ticked
Controls whether returns and exchanges are included in sales calculations.
When Enabled
The system includes:
- Return Credits
- Exchanges
when calculating quantities sold.
When Disabled
Returns and exchanges are excluded from the calculation.
Include Back Order Figure
Default: Ticked
Controls whether outstanding backorders are included when reassessing Safe Levels.
When Enabled
Backordered demand is included using:
(Quantity Sold + Back Ordered − Excluded Back Ordered) ÷ Months Count
When Disabled
Only completed sales are considered:
Quantity Sold ÷ Months Count
Including backorders can help produce more accurate Safe Levels where demand regularly exceeds available stock.
Include Items with a Safe Level of 0
Default: Disabled
Controls whether items that currently have no Safe Level are included in Safe Level reassessment calculations.
When Enabled
Items with a Safe Level of 0 are included.
This can be useful for:
- New products
- Recently introduced stock lines
- Items that have never had a Safe Level assigned
If sales exist, Khaos Control can automatically calculate and apply a new Safe Level.
When Disabled
Items with a Safe Level of 0 are ignored during reassessment.
Calculate Build Child Items from Parent Item Sales
Default: Disabled
Controls how Safe Levels are calculated for build relationships.
When Enabled
Khaos Control:
- Analyses sales of build parent items.
- Calculates how many child components were consumed.
- Updates Safe Levels for both parent and child items.
This can produce more accurate purchasing recommendations for component stock.
When Disabled
Only the build parent item is included in the calculation.
Child component Safe Levels are not updated based on parent sales.
Excluding Anomalous Orders from Reordering
Khaos Control includes functionality that allows unusual sales and purchase orders to be excluded from reordering calculations.
Examples might include:
- One-off bulk purchases
- Exceptional customer orders
- Non-standard stock movements
- Test transactions
When enabled:
- Orders can be marked as excluded directly within the Sales Order or Purchase Order.
- An Excluded Items section becomes available within the Reordering screen.
- Users can filter and review excluded transactions separately.
Important: This functionality is not enabled by default.
To enable anomalous order exclusion, please contact the Khaos Development Team.
Default Configuration
New Khaos Control systems are typically supplied using the default values described throughout this article. Review these settings carefully before making changes to ensure they support your purchasing and stock management processes.