Let’s dive back into the Part module for the second time. You might even call this part 2. Last time, we discussed how to create new parts and now we’re going to cover how to create part reorder levels.
Reorder points are certain quantities of inventory that, when reached, trigger the process of obtaining more parts to reach a certain level. So when the total number of parts in stock gets down to the reorder point, you’ll know it’s time to reorder more of them.
Let’s make sure we’re clear about the difference between reorder levels and reorder points.
Reorder Levels are made up of two things:
Reorder Point: The minimum number of items in stock that marks the point at which they must be reordered to avoid running out.
Order Up to Level: The maximum or preferred number of items that can be contained in stock. The reorder quantity shouldn’t be higher than this number.
You can run a Reorder Report from the Report module to produce a list of all the items in your inventory that have reached their reorder point. It will also show you how many to reorder to return to the proper level.
You can use reorder levels to automatically generate purchase orders for the necessary number of parts to get them back to the desired quantity through the Auto PO wizard. If you’re a manufacturer, you can also use reorder points to automatically generate manufacture orders for the desired quantity using the Auto MO wizard.