We have a stock item with a max quantity of 12, a reorder point of 6 and a safety stock of 2. How does the safety stock come into play. What does it mean to replenishment?
safety stock
Userlevel 7
+16
Hi
The replenishment functionality in Acumatica ERP gives you the ability to maintain the needed level of stock at warehouses by purchasing the appropriate quantity of stock items from vendors or by transferring that quantity from other warehouses to the needed warehouses.
Here is what each of those mean:
| Safety Stock | The safety stock (in base units) of the stock item to be used to calculate the quantity required for replenishment; these extra quantities of the item are kept at a warehouse to prevent possible stock-outs. |
| Reorder Point | The stock level that, when reached, prompts the system to initiate stock replenishment for the stock item. The value is used in Min./Max. method as the minimum quantity. This quantity should be set equal to the anticipated demand during the lead time plus the safety stock. |
| Max. Qty. | The maximum stock level for the replenishment. When the quantity of the item falls below the Reorder Point value, the system generates a replenishment request with the quantity required to replenish the stock up to the Max. Quantity value. |
Userlevel 6
Please give further clarification. In this example, will the Acumatica replenishment system recommend ordering 8 or 10 units:
Max Quantity: 12
Minimum Quantity: 4
Safety Stock: 2
When the inventory quantity decreases to 4 units, does the Acumatica replenishment system recommend ordering 8 units or 10 units? In otherwords, does “safety stock” affect the amount the replenishment system recommends or is it a number just for reference?
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