iXERP Stock Reorder Level or Critical Stock Level feature, save companies a lot of hassle about the inventory stock level and the communication between the warehouses and purchase or procurement department, plus it increases sales by converting lost sales opportunities to actual sales.

What is Stock Reorder Level or Critical Stock Level?

The Stock Reorder Level or Reorder Point, also known as Critical Stock Level is a term used by businesses to identify every product’s minimum quantity that should be in stock per every warehouse. If the warehouse reaches this point or that level of product on-hand stock, so we should communicate this with the purchase or procurement department to start to order new quantities from this item or produce new quantities in case of we manufacture this product. This also applied to raw materials and final products.

How iXERP handle Stock Re-order Level?

iXERP is equipped with a fully-featured inventory module to manage stocks and warehouses for several product types like raw materials and manufactured final products.

iXERP manage stock in several warehouses and define the quantities per warehouse if we choose to use the reorder level feature then we should set up a reorder level per item per warehouse, as the requirement of the product’s quantity in the branch warehouse usually lower than the required in the main warehouse.

If you choose to use the Stock Reorder Level in iXERP, then iXERP will notify you when the stock reaches the quantity you set in the reorder level per the warehouse.

When iXERP Stock Reorder Level is set, it reduces the requirement of communication between internal departments and will alarm the responsible department to start the order for certain product’s quantities.

It also increases sales by eliminating lost sales opportunities, salespeople will no longer embarrass themselves or the company by selling a product that does not exist in the stock.

How to Calculate Stock Reorder Point

Stock Reorder Level can be calculated by the below equation, simply companies should estimate the product quantity they sell from this warehouse per day and the time required to stock-in the same quantity again (This may be the supplier delivery time), then add your safety margin.
Reorder Level = (Average Unit Sales Per Day x Delivery Lead Time) + Stock Safety Margin

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