What is Reorder level?
A reorder level is the quantity at which an item should be reordered, set so that stock arrives before the shelf empties. It accounts for how fast the item sells and how long the supplier takes.
A reorder level is the quantity at which an item should be reordered, set so that stock arrives before the shelf empties. It accounts for how fast the item sells and how long the supplier takes.
In Bangladesh
Lead times vary a lot between a local distributor and an import, so a single reorder level across all items produces both stockouts and overstock. Setting it per item is the point of the exercise.
An example
An item selling 10 a week from a supplier who takes two weeks to deliver needs a reorder level of at least 20, plus a buffer. Set at 5, the shelf is empty for a week every time.
In SORS ERP
Auto replenishment rules in SORS ERP watch stock against the level you set per item and warehouse, and backorders record demand that could not be met so it is not simply lost.
Also called
- In Bangla
- পুনঃক্রয় স্তর
- Also
- Reorder point
- Also
- minimum stock
Questions
Answered plainly, including where the answer is no.
How do I set the level for a new item?
Start from an estimate of weekly sales multiplied by the supplier lead time in weeks, add a buffer, and revisit after a month of real sales. The point is to adjust it from data, not to get it right first time.
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