This setting determines the way in which the order quantity for the quantity suggestion for the reorder is calculated.
You can choose between:
Reorder level - net stock - ordered quantity or
(Reorder level - net stock - ordered quantity) \+ (Average consumption * (Replacement time + Stock turnover (in days))
Parameters used for suggesting a reorder quantity:
Reorder level = the quantity at which a reorder should be placed. You can select a static or dynamic reorder level.
Net stock = the quantity of stock that can be sold.
Ordered quantity = the quantity that you already ordered from your supplier, but that is still to be delivered.
Average consumption = the average quantity consumed or or sold per day. The sales period that you select defines the period of time that will be used to calculate the average consumption per day.
Replacement time = the time needed by a supplier to deliver the ordered variations. The number of days required by the supplier to deliver a variation needs to be entered in the Supplier tab of a variation.
Stock turnover (in days) = The stock turnover (in days) saved. The stock turnover (in days) represents the number of days that you want your stock to last. The stock turnover (in days) is saved for each variation per warehouse in the Warehouse tab of the variation.