Reorder level refers to the quantity of a stock item in hand. On reaching the reorder level, you have to place orders for your supplies. The importance of reorder level arises from the need to have sufficient stocks to meet customer orders and, at the same time, prevent unnecessary accumulation of stocks.
Therefore, the following points have to be considered while deciding the reorder levels:
● The lead-time for suppliers to deliver the stock.
● The delivery time specified by the customer.
● The stock-in-hand to satisfy existing orders.
In simple mode, Tally.ERP 9 accepts the quantities that you want to specify. In advanced mode, it considers the previous consumption patterns to suggest reorder levels. However, you can define your own reorder levels. You can also specify the minimum quantity of the item to be ordered, either in simple or in 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 Inventory Info. only if Enable purchase order processing? is enabled in F11: Inventory Features.
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