Restock Rules

Restock Rules

Restock Rules are exactly what they sound like. They are the rules you configure in your store to tell RestockPro how to calculate your Restock Suggestions. There are several sections in this tab:

  • Target Quantity on Hand Days

  • Velocity Rule

  • Current Inventory Calculation


The Store Settings establish your default preferences, but may be overridden or updated individually for particular suppliers or products.

Restock Model and Settings


Set the Restock Model to indicate the typical way that you replenish products. Choose the Local model option only for products that you stockpile locally - ie, you build up your own local supply and use that to supply Amazon. With Local model, RestockPro will suggest both when stock needs to be shipped to FBA, and also when your local supply needs to be replenished. If Local does not describe your business, choose either direct or cross dock. Most sellers use the cross dock model where items are received, prepped, and sent into FBA. For both of these models, RestockPro suggests when to place an order with your Supplier.

Be sure to set the Local lead time here. This is the average number of days required to prep and send an order from your warehouse into Amazon and have it be received and available.


Target Quantity on Hand Days

RestockPro uses your stock preferences to populate your restock suggestions. This is where you tell the software how many days of stock coverage you want to keep at Amazon. Products that fall below the minimum number of days you set will be flagged in red, and the products that are between your minimum and maximum number of days will be flagged in yellow. You set the minimum and maximum by populating the fields in this section.

When you look at your restock suggestions, the red and yellow flags will appear next to products that you need to ship either from your local inventory or items you need to reorder from your supplier, and the suggested quantity to ship or reorder will be displayed. Restock suggestions is like your color-coded “to do” list for inventory ordering!


Case Pack Rule

Additionally, the Target Quantity on Hand section asks you to set a case pack rule. This is necessary for items you purchase in multiples. You can choose to round up, round down, or not round the number of items you need to reorder that come in case packs. For instance, if a product is set for case packs of 10, and the suggested order quantity is 17, the rule will specify whether the system rounds the suggested quantity up to 20, down to 10, or leaves it at 17. Of course, the suggestions are just suggestions, and you may always override!


Velocity Rule

The velocity rule section allows you to specify how future demand is calculated. RestockPro predicts future demand based on past sales. You set the time periods that will predict future sales. In this section, you’ll set:

  • Velocity Estimation Rule

  • Adjust Velocity for Out of Stock

By default, RestockPro does not include Pending Orders in its sales velocity calculations. These orders are volatile and may still be canceled. If you would like Pending Orders including, enable the checkbox for "Include pending orders in sales calculations".


Velocity Estimation Rule

In this section, you tell RestockPro your preferred past sales time period to be used in predicting your future demand. Sales velocity means per day sales. Most stores choose a simple 30 or 60 days, but you have a variety of options depending on your preference and the type of products you sell. Here, you choose an overall setting, but you can override this store setting for a particular supplier. You can choose to estimate demand based on sales in the following time periods:

  • Past __ days: (sales for the past 7, 30, 60, 90, or 180 days)

  • Weighted Average (allowing you to specify the importance of each time period by giving them each of percentage weighting)


Average Velocity Weightings


You can choose to place equal weighting on each time period, or you can place more weight on certain periods. No matter what distribution you choose, the total has to equal 100%.


Adjust Velocity for Out of Stock

You can set your demand to adjust for out of stock time periods, or keep it at the default (no). By choosing yes for this rule, RestockPro will increase the demand to account for the time the product was out of stock. The result is that the suggested restock quantity will be increased to reflect sales that presumably would have occurred if the item had been in stock.

Details: To adjust for out of stock periods, RestockPro first attempts to find a similar in-stock time period on which to base the sales velocity. If it cannot, it will adjust the velocity up to 15% to account for out of stock time periods. If the out of stock period is greater than 15%, the item will be marked with a red flag on Restock Suggestions. The indicator suggests you might want to consider whether the out of stock demonstrates a supply chain problem you should resolve. It may also suggest increasing the suggested reorder quantity if you feel the product has greater sales potential.