Automatic Replenishment

Automatic Replenishment

 Automatic Replenishment

Automatic Replenishment Window

HandiFox can automatically compile purchase orders to replenish your stock. To use this feature, go to Purchases → Automatic Replenishment and select the Site where you want to replenish inventory.

There are multiple ways to automatically replenish inventory: Quantity sold for the period, Average sales rate for the period, Reorder Point & Desired quantity on hand and, Quantity on hand forecasting per sales rate.

Quantity sold for the period

This option is suitable when you reorder products regularly, for example once a week, and want to replenish them according to your sales volumes for the next week.
For example, you have 10 pens on Monday, during the week you sold 7 pens, and on Saturday you want to replenish pens so that you have enough till next Saturday. 

The system calculates how many items should be ordered the following way:
  1. It calculates how many items were sold since the selected date then adds the quantity on open sales orders.
  2. The system reduces the resulting quantity by the quantity on open purchase orders and current QOH value
 Quantities on open Purchase Orders are taken into account by default to avoid multiple duplicate purchase orders (see options for replenishment below).
 Quantities on open Sales Orders are taken into account by default so you may fulfill them (see options for replenishment below).

 Please do not forget to close open Sales and Purchase Orders if they are not relevant anymore.

If the calculated replenishment quantity is 0 or less, then the product is not reordered and it will not be shown on the list (see options for replenishment below).

Let’s take our previous example with pens. Last Monday you had 10 pens, during the week you sold 7 pens. Also, you have open Sales Orders for 5 pens, and you are expecting 4 pens from your vendor. On Saturday your current QOH is 3.
The quantity to replenish is calculated: 7 + 5 – 4 – 3 = 5
In other words, we need to reserve 7 for future invoices and we need 5 more to fulfill the open sales order. So, we need 12 for the next week. We already have 3, and 4 will be received against PO. Thus, we need 5 more to order.


Average sales rate for the period

This option is used when you want to restock your products based on your daily sales rates so that the restocked products will last till a certain date.

The system calculates how many items should be ordered the following way:
  1. It calculates average daily sales for the product from the selected date.
  2. The resulted quantity is multiplied by the number of days from now till the selected date in future
  3. Adds the quantity on open sales orders.
  4. The system reduces the resulting quantity by the quantity on open purchase orders and current QOH value
If the calculated replenishment quantity is 0 or less, then the product is not reordered and it will not be shown on the list (see options for replenishment below).

 Quantity on open POs and open SOs can be excluded from calculations (see options for replenishment below).

Let's show our calculations on the example with pens. 
We are running out of pens (only 3 on hand) and want to restock them based on sales rates during the last month. The ordered quantity should be enough for 2 weeks. In 2 weeks, we are going to restock the pens again. Also, you have open Sales Orders for 5 pens, and you are expecting 4 pens from your vendor.
During the last month we sold 54 pens. Our average daily sales are 54/30 = 1.8 pen a day.
We need pens to last for 2 weeks: 14 days * 1.8 pen a day = 25.2 pens.
Add quantity on SO and subtract quantity on open PO and QOH: 25.2 pens + 5 (on SO) – 4 (on PO) – 3 (on Hand) = 23.2 pens should be ordered.


Reorder Point & Desired quantity on hand

A reorder point (ROP) is a specific level at which your products need to be replenished. In other words, it tells you when to place an order, so you won’t run out of stock.
Desired QOH is the level till which the products should be restocked.

This option of replenishment is useful when you reorder products only when they are low, and you want to restock to a certain level.


See Reorder Points and Desired QOH Levels for more details.

Quantity on hand forecasting 

It predicts how many weeks the current quantity of items will last. The selection includes items whose quantity has dropped to 0 or to the Reorder point.

The system takes the average weekly sales for the specified period and calculates how many weeks the product will last according to the current QOH and weekly sales. 

For example, if you sold 54 pens within the last 30 days, the reorder point for the pens is 5, and the current QOH is 3. Then we the forecasting will tell you, that the pens will last for 1.6 days ~ 0 weeks. The resulted number of days are always rounded down to weeks. In other words, 6 days will be rounded to 0 weeks.

Additional options

  1. Show all items – it will display all items, including those that should not be reordered now according to calculations, so that you can review the whole item list.
  2. Show alternative vendors (display each item several times, once for each alternative vendor) – it is helpful if you have several vendors for each item and regularly order items from alternative vendors. For each item you will see all its vendors with their costs on one page without having to click on the Vendor dropdown.
  3. Include the Quantity on PO in calculations and Include the Quantity on SO in calculations. These checkboxes allow to exclude Quantity on PO and Quantity on SO from calculations whether the item should be reordered and how much should be reordered.








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