When AGR calculates orders, there is an option to include or exclude demand during a stockout period.
If you experience frequent stockouts, where newly arrived stock is consumed almost instantly and you struggle to replenish fast enough. Chances are, demand builds up and the lost sale setting could help you order more to account for the "backlog".
Overview
The calculation can range anywhere from 0% - 100%.
By default, the setting is set to 0%.
0% lost sale means no sale is considered lost, assuming demand will be anticipated and fulfilled when stock returns.
100% lost sale means all demand during the stockout is considered lost.
You can also set a percentage between 0% and 100% to assume only a portion of missed demand is lost.
Where can you find it?
On a global level, cogwheel icon > Settings > Orders
Apply it to an item group, or any meta level through Bulk Update.
Item level settings are available through the Item Card > Details > Order Logic Settings.
Lost sale impact on order calculations
See the following two order calculations for item number: P-149428-46
The item is currently stocked out with a lead time of 10 days.
Lost sale 0% - Order Line
The first order line has a Lost sale setting of 0% - Meaning no sale is lost, and all demand from today until the end of the order period.
Lost sale 100% - Order line
The second line has a lost sale setting of 100% meaning, all sale during the stockout is lost.
When we compare the item card charts, with a 0% and a 100% setting, it helps to include the negative stock, by clicking the icon below, to see the build up of estimated stock:
Lost sale 0% - Item card chart
There is no build up of negative estimated stock.
Lost sale 100% - Item card chart
The estimated stock continues in a period of stockout and is expected to be consumed from the estimated future deliveries stock on the day the order would arrive.
If Estimated Future Deliveries look way too high, it might be because the Estimated stock is accounting for backlog demand, or negative numbers.
If this does not fit your business, consider increasing the Exclude Lost Sale percentage or set it to 100%.