The formula to calculate for the quantity of each item that shows on the Items to Order page if the Replenishment Method = Reorder Point:
(Preferred stock level + quantity needed ) less (quantity available + quantity on order )
Where:
A. Quantity Needed = The Quantity on Sales orders* and Transfer Orders.
*Quantity on Sales Orders are the ones in back order (Quantity Back Ordered) and not committed on the sales order.
B. Quantity Available = Quantity On Hand – Quantity Committed
C. Quantity on Order = Quantity on Purchase orders
D. Preferred Stock Level – This is found on the Inventory tab > Inventory Management portion on an item record.
The preferred stock level is the optimum quantity to maintain in stock of an item.