Reorder Level

The Reorder Level represents the minimum stock level for the vehicle (equivalent to the MIN in a Min/Max-based system).  Whenever the vehicle drops at least 1 unit below the Reorder Level, auto-replenishment will automatically place an order with the central warehouse for shipment to the vehicle warehouse. (If the Reorder Level is set at 1, the technician will run out of that part before an order is placed. Therefore, it is recommended that you always set the Reorder Level to 2 or higher.)

A minimum amount of an item which a company holds in stock, such that, 
when stock falls to this amount, the item must be reordered

Example:

Warehouse	Part	Reorder Level	Reorder Quantity
FTSV092	12345678	2	3
Whenever the on-hand quantity of part 12345678 in vehicle FTSV092 drops below 2, a replenishment order will be created for parts to be shipped from the department’s central warehouse to this vehicle warehouse.

Reorder Quantity

The Reorder Quantity represents “how many more than the minimum are normally allowed” for this vehicle warehouse.

• If you want to keep exactly a certain number on the vehicle, then the Reorder Quantity will be 0.
     For example, if you want to always keep 2 units of part XYZ on the vehicle, the reorder level is 2 and the reorder quantity is 0.

  
  

• If you want to allow for some fluctuation in the on-hand quantity, then Reorder Quantity will be the difference between the minimum and maximum quantity to keep stocked.
     For example, if you want to always keep between 6 and 10 units of part XYZ on the vehicle, the reorder level is 6 and the reorder quantity is 4.

  
  

MAX stock level = Reorder Level + Reorder Quantity

Example:

Warehouse	Part	Reorder Level	Reorder Quantity
FTSV092	12345678	2	3
The maximum number to keep on hand [Reorder Level + Reorder Quantity] is 5.  For part 12345678, the vehicle is to keep on-hand a quantity of between 2 and 5 at all times.  When placing an auto-replenishment order, the system will request the number needed to return the vehicle to a total of 5 for part 12345678. If the vehicle reaches an on-hand quantity of 1, auto-replenishment will place an order for 4 more of this part.