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I've read the short documentation with regards to the reorder and restock fields, however, I am still a bit confused.
Would someone kindly clarify this is simpler terms (for a beginner).
Thanks in advance!
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You can think of reorder point as the minimum quantity that you want to have in stock before the system reorders the item, and think of the restock level as the maximum quantity that you want to carry in stock of that item. This is a useful feature for items you reorder regularly, that you wish to always have some safety stock of (the reorder point).
The most common approach to setting a reorder point is to make it equal to the amount you would sell over the course of your vendor's standard lead time. In other words, if your vendor takes 10 days to get you your items (delivered at your store), your reorder point should be at least 10 days worth of sales. At day 11, you would be out of stock. Pad it as needed.
When the item's on hand quantity falls below the reorder point, it will be added to a 340 PO Planner worksheet when you select this as the method for populating items and quantities on a store PO.
Hope this helps.
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