How to set the Reorder Rules for Items

To set the Reorder Rules for the items in AltheaSuite, follow the steps given below;

Step 1: Login to your AltheaSuite account.

Step 2: From the main menu options, go to Purchases à Reorder Management.

Step 3: If you are managing multiple warehouses, you can set the different Reorder Rules for different warehouses. Select the warehouse from the left section of the screen.

Step 4: Select the item to set the Reorder Rule and click on Assign Reorder Rule to Selected Items. You can also select multiple items to assign reorder rule.

Step 5: To select all items, click on the checkbox in the header.

Step 6: In the Assign Reorder Rule window,

Reorder when the stock is less than: Enter the quantity when an item is considered to be low in stock and should therefore be reordered. The system will compare the current stock of the item from the warehouse with the quantity specified here for the Reorder.

Purchase to maintain safety stock: The Item quantity specified in this field will be required to calculate the PO Quantity so that the item stock is maintained.

For example, if you enter reorder when the stock is less than as 5 qty and quantity to maintain as 20 qty for the item and if the current stock for the item is less than 4 qty. Now when you check for the reorder items from the Stock Manager, you will see this item in the grid because the current stock of the item (4 qty) is less than the reorder quantity (5 qty). The system will now calculate the ‘Quantity to Reorder’ for the PO based on the Safety Stock.

Quantity to Reorder = (Minimum Safety Stock) – (Current Quantity)

In this case, the Quantity to Reorder will be (20) – (4) = 16 qty

When you create a purchase order based on reorder level, the system will automatically generate a purchase order for the item with 16 qty so that the stock of the item is maintained.

Always Purchase Fixed Quantity: The quantity specified in this field will be considered as the Purchase Order quantity when item stock falls below the reorder stock. In this case, the system will always generate PO with the fixed quantity that is specified.

For example, if you enter reorder when the stock is less than as 5 qty and quantity to maintain as 20 qty for the item and if the current stock for the item is less than 4 qty. The system will then generate the PO with 20 qty for the item.

Minimum Stock Require for Online Shop: The item quantity specified here will be considered for the E-Commerce website that is linked with the AltheaSuite. 

Step 7: Once the Reorder Rule for the item is saved, you will see the Reorder Rules in the grid.