The Re-Order Level in any ERP plays a significant role in checking up the Inventory Levels and manages the inventory.
All this data statistics is handled using Location in Sage X3, this location is assigned to Sites. The Location has an option to assign the Reorder Level point for every location. Let’s understand it with an example:
- Reorder threshold: 30 STK (stocking unit)
- Maximum Qty: 120 STK
- Reorder PAC (packing unit) Box of 10
- Economic Qty: 5 Boxes
- For a location stock of 20 STK, the system will create a requirement of 2*5 boxes = 100 STK.
- The location stock will be 120 STK (= Maximum quantity)
- For a location stock of 25 STK, the system will create a requirement of 1*5 boxes = 50 STK.
- The stock in the location will be 75 STK (< Max qty).
Note: In order to manage the replenishment of shortages, it is impossible to define a threshold and a maximum quantity of 0. In this way, the replenishment will only be proposed in the case of a shortage at the location (this can be of use in the replacement of sub-contractors). It is the only case where the economic quantity can be greater than the maximum quantity.
Hope this helps in understanding Reorder fundamentals.
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