Suggested Quantity Calculation

The Calculator gives you an in-depth analysis of the two major formulas for a SKU. One part of that analysis is your suggested reorder quantity for that SKU. For more about the EM calculation, visit this article.

 

Suggested Quantities

RestockPro is constantly importing and crunching your numbers to give you an accurate picture of how much to reorder and when. The calculation accounts for many, many details related to your current inventory, your supplier lead time, case packs, minimum order quantity, out of stock and more. While the calculation is straightforward, RestockPro saves you countless hours by keeping it constantly updated across all of your SKUs.

The calculation begins with your total current inventory. This includes your total Amazon fulfillable inventory (QOH), plus inbound and estimated in process. Estimated in Process is your reserved minus the pending quantity already preparing to be shipped out to a customer. Note that you may specify certain inbound statuses to be ignored on the My Store page.

The system determines how long the current inventory will last (Coverage Available) based on the forecasted demand. Demand is gauged based on past sales velocity, adjusted for out of stock (OOS) if you have enabled that option in your store settings.

Coverage Available: how much inventory you currently have at Amazon, in your local warehouses, and on order from your suppliers.

If you have enabled the OOS adjustment, you will see an alert icon (!) beside any time periods with stock outages. Hover your mouse over it see the OOS %. The system shows you unadjusted velocity in parentheses beside the velocity and the adjusted velocity as part of the formula on the right.

Next, the Calculator calculates how many units of that SKU you need to restock at Amazon. It takes your target maximum days stock and subtracts the number of days you already have at Amazon. This multiplied by the demand is the “Coverage Required”, or the additional quantity needed at Amazon. Next any orders that have already been placed are deducted.

Coverage Required: the maximum inventory you want to keep at Amazon plus how much extra you'll need to order to cover your lead times.

The difference between your Coverage Required and Coverage Available is your Restock Needed - how much you should reorder from your suppliers. From there we apply your rounding rules based on whether or not the product must be purchased by the case, the case pack quantity, and your supplier's minimum order quantities. That final number - which we'll display in both units and cases where appropriate - is the Suggested Reorder Quantity.

 

restock-calculations-update

 

Restock Model will still determine which lead times we use in your calculations, but does not determine which local and on order quantities to include.

Previously, products that were set up to use a Direct restock model would simply ignore your local quantities or quantities that were on order from a supplier as part of a local or cross dock purchase order. This was a confusing user experience since it ignored the fact that you might not always ship directly to Amazon despite that being your normal replenishment method.

RestockPro factors in all of your local and on order quantities, regardless of restock model, to help you better manage your supply chain.