AGR's standard default order methodology is different from the BC Fixed Order Qty or Maximum Inventory method. The standard AGR methodology does not consider the reorder point stock level to determine whether there is a need to order. Instead, standard AGR methodology looks at
Total Demand
Safety Stock of the order period along with
Current stock level and
any outstanding orders yet to be delivered
to calculate whether to order an item to cover the demand for the period.
AGR's Min/Max order methodology works in the same way as the BC Maximum Inventory Reordering Policy. The Reorder point and Max Stock are used to define when an item needs to be ordered and how much to order. When the stock level on an item in a location drops to or below the Reorder point, the order quantity will be set to build the stock to the Max Stock level.
Select the default methodology for AGR in the Orders tab of Settings. The three order methodologies AGR supports are
Standard
This default methodology means that active demand in the system will be based on the statistical forecast, Baseline Plan and Promotion demand as well as BOM Demand if you use BOMS.
Min/Max
When the stock level on an item in a location drops to or below the Reorder point, the order quantity will be set to build the stock to the Max Stock level
Use min/max if exists
This option will use Standard if there is no Re-order Point and Max recorded against the item.
