Reorder Level signifies the quantity of a Stock Item in hand, after reaching which you must place orders for your supplies. The importance of Reorder Level arises from the need to have sufficient stocks to service customer orders and, at the same time, not to unnecessarily accumulate stock.
Therefore, the points to be considered while deciding the reorder levels are as follows.
The lead-time for suppliers to deliver the stock.
The delivery time specified by the customer.
The stock-in-hand to satisfy orders in the meantime.
In simple mode, Tally.ERP 9 accepts the quantities that you specify. In advanced mode, it considers the past consumption patterns to suggest reorder levels. You can however, choose to define your own reorder levels. You may also specify the minimum quantity of the item to be ordered, either in simple or advanced mode.
The purpose of specifying reorder levels is to obtain a report that indicates the quantity of a Stock Item that you must order.
Note: The option Reorder Levels is displayed in the Inventory Info. menu only if Allow Purchase Order Processing is enabled in F11: Inventory Features
More:
Specifying Simple Reorder Level and Minimum Quantity
Specifying Advanced Reorder Levels and Minimum Quantities
Altering Reorder Levels and Minimum Quantities
Reorder Status and Quantities to Order
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