Stock Glossary

[smyeong]

How would u understand these words?

Can somebody explain to me what actually are meant by Reorder QTY , Safety Level and backorder ? I need to make clear of these words before i use them in my stock control access.

Thanks.

 

[Mile-O]

Having never done a stock management database I'd take an educated guess at:

• Reorder Quantity - The number to reorder to replenish stock;
• Safety Level - The quantity to which the stock can drop before being reordered;
• BackOrder - An item that is out of stock that have been ordered (I think!)

 

[neileg]

Mile is about right.

Reorder is as he says. However this is often qualified as a minimum reorder quantity. The actual reorder quantity may be higer due to other predictable demand.
Safety level is an American term that we call reorder level in the UK.
Backorder is a more loose term. It means that there is an order that cannot be satisfied within the normal timeframe. This can apply to demands on the stores function or may relate to orders placed on suppliers by the stores function.

 

[smyeong]

More understanding on the terms

Mile is about right.

Reorder is as he says. However this is often qualified as a minimum reorder quantity. The actual reorder quantity may be higer due to other predictable demand.
Safety level is an American term that we call reorder level in the UK.
Backorder is a more loose term. It means that there is an order that cannot be satisfied within the normal timeframe. This can apply to demands on the stores function or may relate to orders placed on suppliers by the stores function.

Thanks for those replied above. In my scenario, can i make the reorder qty and safety level different meaning based on below :

ItemA
Stock balance : 10
Safety Level : 5
ItemA ordered : 20
reorder qty = absolute (10 - 20) + 5 = 15
onhand qty = stock balance - item ordered = 10 - 20 = - 10

Can u say onhand qty also = reorder qty before plus safety level IF order more than current stock balance ?

 

[Parker]

Thanks for those replied above. In my scenario, can i make the reorder qty and safety level different meaning based on below :

ItemA
Stock balance : 10
Safety Level : 5
ItemA ordered : 20
reorder qty = absolute (10 - 20) + 5 = 15
onhand qty = stock balance - item ordered = 10 - 20 = - 10

Can u say onhand qty also = reorder qty before plus safety level IF order more than current stock balance ?

You could but I don't understand why.

Reorder Quantity = The number to reorder to replenish stock

Safety Level = Here in the UK this can mean two things. I have seen it used to indicate the minimum level of stock on hand before placing a reorder. But in the military it is often used as a second level of saftey. i.e. Reorder level = 10 ; Saftey level = 3; when used in this way it means, literally, that there must allways be three of these on hand for emerg. use and usually yoou need special permission to issue once this level is reached.

BackOrder = both Mile and neileg are correct but, for pratical purposes it means that the supplier can't fill the order right now but will, usually, expect to forward it at some time in the future. This is important to note because if you decide you can't wait and reorder that item elsewhere you normally would have to cancel the Backorder; so yop need to check cancelation policies otherwise you could end up with a double order. Often, if asked, as supplier will indicate a lead time on back orders.