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Purchase Ordering Methods

Purchase Ordering Methods

Owned by Julie Hanlon
Last updated: Nov 20, 2023Version comment

Sales Forecast

  • Accumulates the Budget Units for each month from the Reorder Month for every future month required to cover the Delivery Days (assuming there are 30 days in a month).

  • Less units already on purchase order

  • Plus Minimum SOH

  • Less SOH

  • Rounds up to the next multiple of Order Units

Replenish to Minimum

  • Minimum SOH for the Reorder Month(looking at a single month as many months ahead as required)

  • Plus Backorders

  • Less units already on purchase order

  • Less SOH

  • Rounds up to the next multiple of Order Units

Weighted and YTD Average

  • Averages sales history from today for as many of the immediate past months as stated.

  • Accumulates the average based on the number of future months coverage required for.

  • Rounds up to the next multiple of Order Units 

Availability of each method

The Purchase Order Generation form by warehouse for all suppliers offers:

  1. Replenish to Minimum

  2. Sales Forecast

The Purchase Order form by warehouse by single supplier offers:

  1. Replenish to Minimum

  2. Weighted and YTD Average