Summary:
How quantity to order is calculated on the Purchasing Advice Report by Days of Supply
Solution:
Example: If running the report from 8/8/14 through 8/15/14 (1 week time period) and 17 (qty) were sold during that week. (There are 8 days counted in the time period from 8/8/2014 to 8/15/2014).
By this logic:
A quantity of 17 was sold, over a period of 8 days (not 7 days). This equates to 17 / 8 = 2.125 per day.
7 days of supply was selected, so the target quantity is 7 * 2.125 = 14.875.
There are currently 7 on hand, so 14.875 - 7 = 7.875 needs to be order, which rounds to 8.
Article ID: 376
Created: August 15, 2014
Last Updated: August 15, 2014
Online URL: https://counterpoint.knowledgebase.co/article.php?id=376