Process Overview

The inventory reorder process forecasts future inventory requirements based on historical sales. Once an expected requirement is established, Greentree Desktop takes the current inventory holding and subtracts expected sales and adds expected deliveries.

The period that the inventory requirements are being predicted for starts at the planned delivery time for the current purchase order (if one exists) to the expected delivery time for the next order. These dates are determined from the order cycle-time and the lead time associated with the delivery method.

If the predicted holding falls below a nominated minimum quantity (which includes backorders), then Greentree Desktop suggests an order quantity to restore inventory levels back to the minimum quantity, and to cover expected sales to the end of the prediction period.