What's the difference between reorder trigger and optimal quantity?
Reorder trigger qty
This the minimum quantity you can set for a product. It is used on the Replenish inventory page to calculate the suggested reorder quantity and ensures a minimum quantity is maintained in inventory.
Optimal order qty
This is the optimal order quantity based on your supplier's packaging requirements. For example, if Product A is supplied in boxes of 10 units, the suggested reorder quantity will be in multiples of 10.
The suggested Quantity to purchase is calculated using the formula
Quantity to Purchase = Reserved - (Inventory On Hand + Incoming)
If the result is less than the Trigger min qty (if set), the system will use the Trigger min qty instead.
If an Optimal order qty is set, the final suggested quantity will be rounded up to the nearest multiple of the Optimal Order Qty.
📝Formula breakdown:
To calculate how much more you need to buy to meet current demand:
You start with how much is needed (reserved),
then subtract what you already have or will soon have (inventory in hand + incoming).
