Inventory Control template

  • Thread starter Thread starter Raymond
  • Start date Start date
R

Raymond

I am created an inventory by choosing a template in access called inventory
control. In the entering product forms, there are two fields in which I
don't understand what they are: "Lead Time" and "Reorder level". if Anyone
have experience using inventory control before, please tell me what these
fields are for?

Thanks
 
Reorder Level is the number of items you have in inventory when you need to
reorder more items. Lead Time is the amount of time that typically elapses
from the point you place an order to the point you receive the items you
ordered. Lead time is one of the variables that defines reorder level.
Without the other influences, say your inventory decreases on an average 15
items a calendar day. And say your lead time is 7 calendar days. During that
lead time, your inventory goes down 105 items. Assuming that you have a
minimum inventory established at 45 (3 days) (Called safety stock), your
reorder level is 45 + 105 = 150 items. So when you reach 150 items in
inventory, it's time to reorder more.
 
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