Itemwise Recommended Reorder Level
Overview
Itemwise Recommended Reorder Level
Module: Stock | Report Type: Script Report | Reference: Item
1. What Business Information This Report Provides
The Itemwise Recommended Reorder Level report helps businesses understand how much stock should ideally be maintained for each item based on actual usage patterns and lead times.
It highlights the recommended minimum stock level for every item so that purchasing and inventory teams can avoid both stock shortages and overstocking.
In simple terms, the report answers: - How much of each item should we keep in stock to run smoothly? - Which items need closer attention to avoid running out?
2. When and Why to Use This Report
When to Use
- During purchase planning cycles
- Before placing bulk or recurring purchase orders
- While reviewing slow-moving vs fast-moving items
- During inventory audits or stock optimization reviews
Why to Use
- To prevent stockouts that disrupt sales or operations
- To reduce excess inventory and holding costs
- To align purchasing decisions with actual consumption trends
- To support data-driven inventory planning, instead of guesswork
3. Key Columns and Their Business Meaning
While exact column names may vary slightly, the report typically includes:
Item
- The product or material being analyzed.
- Helps identify which items need attention.
Average Consumption
- Shows the average quantity of the item used over a defined period.
- Indicates how fast the item moves in day-to-day operations.
Lead Time (Days)
- The number of days it usually takes to receive the item after ordering.
- Critical for planning purchases early enough to avoid shortages.
Recommended Reorder Level
- The minimum stock quantity that should be maintained.
- Calculated using consumption patterns and lead time.
- This is the key decision-making figure in the report.
Current Stock (if available)
- The quantity currently available in stores.
- Helps compare actual stock versus recommended levels.
4. Available Filters and Their Business Purpose
Company
- Allows review of inventory requirements for a specific business entity.
- Useful for multi-company setups.
Item or Item Group
- Focus on a specific product or category (e.g., raw materials, finished goods).
- Helps category managers and buyers prioritize their areas.
Warehouse
- Analyze stock needs for a specific location.
- Important for businesses with multiple warehouses or branches.
Date Range / Consumption Period
- Defines the time frame used to calculate average consumption.
- Helps adjust planning based on recent trends or seasonal demand.
5. How to Interpret the Results for Business Decisions
Current Stock < Recommended Reorder Level
- Item is at risk of running out.
- Action: Plan purchase or replenishment immediately.
Current Stock ≈ Recommended Reorder Level
- Stock is at an optimal minimum.
- Action: Monitor closely and prepare to reorder soon.
Current Stock >> Recommended Reorder Level
- Overstock situation.
- Action: Pause purchases, promote sales, or redistribute stock.
High Recommended Reorder Level
- Indicates fast-moving or critical items.
- Action: Prioritize these items in procurement planning.
6. Common Use Cases and Business Scenarios
Procurement Planning
Purchasing teams use the report to decide what to buy, how much to buy, and when—ensuring uninterrupted operations.
Inventory Cost Control
Finance and operations teams use it to reduce excess capital tied up in inventory.
Warehouse Management
Warehouse managers use the report to maintain healthy stock levels across locations.
Seasonal Demand Preparation
Businesses analyze recent consumption to adjust reorder levels before peak seasons.
Management Review
Leadership uses the report as a stock health indicator to ensure inventory policies align with business growth and demand.
Summary
The Itemwise Recommended Reorder Level report is a powerful decision-support tool that transforms inventory data into clear, actionable guidance. By using this report regularly, businesses can maintain optimal stock levels, reduce risk, and improve overall operational efficiency within Dafater.
Report Information
- Module: Stock
- Related DocType: Item
- Report Type: Script Report
- Standard: Yes