Reordering Rules - Part 1: Setup and Rule Basics

Setup and Rule Basics

This part explains what reordering rules are, how products must be prepared, how rules are created, and how route and trigger options affect replenishment.

Reordering rules are used to keep forecasted stock levels above a required minimum quantity without exceeding a specified maximum quantity. This is done by defining the minimum quantity that stock should not fall below and the maximum quantity that should be maintained after replenishment.

Reordering rules can be configured for each product based on the replenishment route used for that product. If a product uses the Buy route, the system prepares the purchasing requirement when the rule is triggered. If a product uses the Manufacture route, the system prepares the manufacturing requirement instead.

Note: In this system, reordering rules are restricted to Buy and Manufacture routes only. Internal warehouse movement should be handled from the replenishment screen using the Create Transfer action.

To set up reordering rules for the first time, refer to:

Reordering rules setup

To configure automatic and manual reordering rules, complete the following:

  1. Product type configuration
  2. Create new reordering rules

Product type configuration

A product must be configured correctly before it can use reordering rules. Begin by navigating to Inventory → Common Forms → Products, then select an existing product or create a new one by clicking New.

On the product form, set the product as a stockable product. This is required because the system uses stock quantities, forecasted quantities, incoming quantities, and outgoing quantities to decide when replenishment is needed.

Next, open the inventory-related section of the product and select the required replenishment route. The route tells the system whether the product should normally be replenished through purchase or manufacturing.

If the product is replenished using the Buy route, ensure that the product is allowed to be purchased and that vendor details are maintained. This helps the system prepare the correct purchase requirement when replenishment is triggered.

If the product is replenished using the Manufacture route, ensure that the required manufacturing setup is available for the product before using the rule.

Important: Although products may use different stock routes, reordering rules in this system accept only Buy and Manufacture. If an internal or inter-warehouse route is selected on a reordering rule, the system blocks the save and displays a validation message.

Create new reordering rules

[Insert image: Reordering rule form]

To create a new reordering rule, navigate to Inventory → Configuration → Reordering Rules, then click New and fill out the following details:

  • Product: The product that requires replenishment.
  • Warehouse / Location: The warehouse or location where the product stock should be maintained.
  • Min Quantity: The minimum quantity that should be available. When forecasted stock falls below this quantity, replenishment is required.
  • Max Quantity: The quantity that should be available after replenishment.
  • Multiple Quantity: The quantity multiple used for replenishment. For example, if the multiple quantity is 5 and only 3 units are needed, the system suggests 5 units.

Tip: Reordering rules can also be created or updated in bulk from the replenishment screen by using the Update Rule button.

Example: A product has a minimum quantity of 10, a maximum quantity of 30, and a multiple quantity of 5. If the forecasted quantity falls to 8, the system suggests replenishment to bring the stock level back toward the maximum quantity. Because the multiple quantity is 5, the suggested quantity is rounded to the nearest allowed multiple.

Note: To understand how On Hand, Forecast, and To Order quantities are calculated, see the Just-in-time logic section.

For advanced usage of reordering rules, users may work with the following fields:

Note: Some fields may not be visible by default. Use the column adjustment option on the list view and select the required field from the drop-down list.

Trigger

A reordering rule's trigger can be set to Auto or Manual. Both options use the same stock planning logic, but they differ in how the replenishment action is launched.

  • Auto: The system prepares the replenishment action automatically when forecasted stock falls below the minimum quantity.
  • Manual: The product appears on the replenishment screen so that users can review the requirement before processing it.

To show the Trigger field, open the replenishment screen or reordering rules screen, use the column adjustment option, and enable the Trigger column.

Auto

Automatic reordering rules are used when the system should prepare replenishment without manual review. When the forecasted quantity falls below the minimum quantity, the system uses the selected route to prepare the required replenishment.

Use automatic rules for products with stable demand, confirmed replenishment routes, and approved minimum and maximum quantities.

Example: The product Office Lamp has an automatic reordering rule with a minimum quantity of 5.00 and a maximum quantity of 20.00. If the current forecasted quantity is 55.00, the rule is not triggered because stock is still above the minimum. If future demand reduces the forecasted quantity below 5.00, the system prepares replenishment using the selected route.

Manual

Manual reordering rules are used when the inventory or warehouse team wants to review replenishment needs before taking action. Products that need attention appear on the replenishment screen with stock, forecast, and quantity-to-order information.

The replenishment screen can be opened from Inventory → Periodic → Replenishment. It helps users review the requirement before confirming the replenishment action.

Example: A manual rule is configured for a fast-moving product. When forecasted stock falls below the minimum quantity, the product appears on the replenishment screen instead of immediately creating a purchase or manufacturing requirement. The planner can review the suggested quantity, filter by warehouse or brand, and then decide whether to order, update the rule, or create an internal transfer.

Preferred route

A product may have more than one replenishment route available. The preferred route on the reordering rule tells the system which route should be used for that specific rule.

To select the preferred route, open the reordering rule or replenishment line, click inside the route field, and select the required route.

Important: This system allows only Buy and Manufacture routes on reordering rules. Internal stock movement should be processed from the replenishment screen using Create Transfer.

Advanced uses

Pairing the preferred route with additional fields allows users to control how replenishment is prepared.

Vendor, Bill of Materials, and Procurement Group

  • Vendor: When the preferred route is Buy, selecting a vendor helps prepare the purchase requirement with the correct supplier.
  • Bill of Materials: When the preferred route is Manufacture, selecting the appropriate Bill of Materials helps prepare the manufacturing requirement correctly.
  • Procurement Group: This can be used to group related replenishment actions for a specific demand, such as a sales order or project.

Note: If no specific grouping is used, demands for the same product may be combined into fewer replenishment actions, depending on the route and planning conditions.

Example: Five products are required for the same sales order and all are purchased from the same supplier. The planner can use the same procurement group and vendor for those replenishment lines so the related purchasing requirement is grouped for that demand. After the requirement is processed, future replenishment can continue through the normal rule setup.

Next Topics :

 Replenishment Actions
Planning & Access