To calculate a suggested order, the system does the following:
Determines if the item's current quantity on hand is greater than or equal to its order point. The system uses the following calculation:
Quantity On Hand
+ Quantity On Order*
- Committed Quantity
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Current Quantity
* Includes future order quantities if they are "current" (based on how you set up Function MPC-Modify Purchase Order Constants).
Note: The system treats negative quantity on hand amounts as zero.
If the current quantity is greater than or equal to the order point, the system does not calculate a new order quantity (suggested order).
If the current quantity is less than the order point, the system calculates a new order quantity.
The system uses the following calculation:
Order Point
- Current Quantity
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New Order Quantity
The system rounds the new order quantity based on the order multiple or standard package.
Note: If the item has a maximum stock level, the system uses a different order point calculation. If the current quantity is below the order point, the system uses the following calculation:
Maximum Stock Level
- Current Quantity
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New Order Quantity