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Introduction

Stock replenishment is available by running the “Update stock limits” job, in Purchases module. 

This task collects all the sales data and calculates the replenishment quantities in the central warehouse, in accordance with:
  1.  the sales that occurred in the previous financial year, or
  2. the budget data, estimating replenishment quantities for future sales.

The relevant to this job Soft1 fields are available in Stock Items > Units of Measure, Alternative Codes > Default Quantities, Stock Limits per W/h
  1. Minimum – Maximum limit: the minimum – maximum quantity you may order. 
  2. Reorder limit: when the stock of an item is about to fall below the relevant threshold, the need of placing a new order will arise. 
  3. Tendency Coef (%): Percentage related field. It will be automatically filled in, should you run a budget data based job. 
  4. Lead time: It is the time -calculated in days- that a supplier needs to deliver the goods, from the moment he receives an order, available as “Delivery Days” in Stock Items > Trade > Purchase prices per supplier. Only the days related to the specific supplier will be taken into account. The supplier should be declared in grid lines as well as in the Main Supplier field.

Info: Minimum, Maximum and Reorder limits stand for total quantities of every warehouse.

The Soft1 tasks/reports that participate in the task’s results are the following:
  • Purchase Orders of Items in Shortage job in Purchases
  • Shortages/Requirements Report in Stock Management  
  • Production for Items in Shortage job in Production

Sales Based Calculation 

By clicking on the Use of Sales field, the “Minimum limit” of the items that are selected in the [Item data] section will be calculated. The rest of the fields (Maximum limit, Reorder limit, Tendency coef) will be reset as soon as the job starts to run.


Example:

Suppose you are working on the current financial year (2018) and you select the First semester, then the Minimum limit would be calculated as follows:  Total Sales (Quant.) of the 1st Semester of the Previous year (2017) ÷ 6 (semester months)

In case you are working on the current financial year (2018) and you select the Second semester, the Minimum limit would be calculated as follows: Total Sales (Quant.) of the 2nd Semester of the Previous year (2017) ÷ 6 (semester months)

Given you are working on the current financial year (2018) and the Date From – To field is selected, then the Minimum limit would be calculated for the specific time period. Attention: the aforesaid period can only be a semester e.g. from 01.02.2017 to 31.07.2017.

Tip: You can find the “Total Sales qty” available in:
  • "Sales statistics" report - [Sales qty 1] column field
  • Stock Items > Related Jobs > Financial data > Period Data > Purchases/Sales - [Purchase qty] column field

Sales Budget based Calculation

By enabling the budget based stock limits update, all the limits (Minimum, Maximum, Reorder) along with the Tendency Coef of the items that are selected in the [Item data] section will be calculated, according to the following data:
  • the Lead time set for the Main Supplier in the stock item’s tab
  • the Minimum/Maximum Safety Time set in the [Safety time for Stock limits] section,
  • the data of the selected Budget.


Example:

Suppose you are working on the financial year 2018 (login date 10.04.2018) and you are running the task based on the following data

  • Lead time = 60 days 
  • Minimum Safety Time= 60 days
  • the Budget  will have the following data


Running the task according to the above-mentioned budget, will calculate the following limits:


Minimum LimitMaximum LimitReorder Limit
  • Adds up all the days for Lead & Minimum safety time = 60d+60d=120 days.
  • Suppose the login date is 10.04.2018 and given the fact that the starting point for our calculation is the first day of the upcoming month, then the 120 days shall be concluded on 28.08.2018
  • Only the budgeted quantities for May (31d), June (30d) & July (31d) will be taken into account. Total=150 items (Minimum limit).
  • If the remaining days (28d) do not cover the budgeted days of August (31d), then they are not included in the calculation.

  • Adds up all the days for Lead & Maximum safety time = 60d+90d=150 days.
  • Suppose the login date is 10.04.2018 and given the fact that the starting point for our calculation is the first day of the upcoming month, then the 150 days shall be concluded on 27.09.2018
  • Only the budgeted quantities for May (31d), June (30d), July (31d) & August (31d) will be taken into account. Total=200 items (Maximum limit).
  • If the remaining days (27d) do not cover the budgeted days of September (30d), then they are not included in the calculation.



  • Adds up all the days for Lead & Minimum safety time = 60d+60d=120 days.
  • Suppose the login date is 10.04.2018 and given the fact that the starting point for our calculation is the first day of the upcoming month, then the 120 days shall be concluded on 28.08.2018
  • Only the budgeted quantities for May (31d), June (30d) & July (31d) will be taken into account. Total=150 items (Reorder limit).
  • If the remaining days (28d) do not cover the budgeted days of August (31d), then they are not included in the calculation.


Note 1:

The quantity/ reorder (C), is calculated as follows:

Suppose A=[(current balance + expected) - reserved] is less than B=[budgeted quantity for the time period (lead time + reorder safety time)], then the reorder quantity equals C = Β - Α

Suppose A is greater than B, then there is no need to order at this point of time, i.e.  C = 0.

Note 2:

In order to get a more accurate reorder quantity result (F), we need to take into account each item’s tendency. Suppose the sum of sales quantities, for the time period considered for the tendency calculation, is greater (+) or less (-) than the sum of budgeted quantities, then the initial reorder quantity (C) shall be increased by the product of multiplying C by (+/-)% (the difference between real sales and budgeted quantities)

Tendency coef

Tendency coef is a percentage related field and shall be calculated as follows: [(real sales - budgeted sales) ÷ budgeted sales] * 100

Real sales calculation:
  • The time period considered for the tendency calculation is taken into account = 90d.
  • Suppose the login date is 10.04.2018 and given the fact that the starting point for our calculation is the last day of the previous month (31.3.2018), then the 90 days shall be concluded on 01.01.2018. The sales quantity is summed up for the specific time period e.g. 120 items (item’s movement)


Budgeted sales calculation:
  • The time period considered for the tendency calculation is taken into account = 90d.
  • Suppose the login date is 10.04.2018, then only the budgeted quantities for May (31d) & June (30d) will be taken into account. Total=100 items. If the remaining days (29d) do not cover the budgeted days of July (31d), they are not included in the calculation
  • As a result, tendency coef  = [(120 - 100) ÷ budgeted quantities] * 100 = 20