Recommended Order Formula

The Recommended Order quantity for a product is equal to [Need - Have]. The Formula section of the screen lets each location determine how Need and Have quantities will be defined in order to calculate the Recommended Order for each product in purchasing transactions. "Need" is equal to the sum of all quantities checked off in the Need column; "Have" is equal to the sum of all quantities checked off in the Have column.

Note: These settings do NOT apply to the Recommended Production calculation; this is always calculated as Recommended Production = (Projected Consumption + Min Par) – Available.

Consumptionrefers to the quantity that the location expects to consume between the time the order is placed and the time the next order will be received.
Min Par and Max Par are set for each product in the Location Products screen in Enterprise Manager or Net-Chef.
Customer Order refers to quantities on picklisted customer orders and outgoing commissary orders (not yet invoiced).
Issues from Central Storage is the total quantity issued on reconciled customer orders, from the voyages selected in the Master Order screen. {Notes}: Only applicable to Cruise Lines. When this is checked, the "Consumption" box should NOT be; the purpose is to indicate that Consumption is based ONLY on this.
On Hand is the quantity currently on hand at the location. This can include just central storages, just customer storages, or both, based on the "On Hand Includes" Purchasing prefrence.
Available = [ On-Hand quantity – Customer Order quantity ]
Incoming is the total quantity on vendor orders and incoming commissary orders that have been submitted but not yet reconciled. It only includes orders with expected delivery dates before that of the order being created.
Need = Min Par for Selected Category Products – When checked, the user can click the click the [...] button to open a window in which to select one or more Category/Subcategory/Microcategory combinations for products within which the "Need" portion of the Recommended Order formula will only consider Min Par. This would typically be used for products that are infrequently inventoried but are reordered when the volume runs low, such as cleaning products or office supplies.
Default Minimum Days on Hand is the default value that will be applied to all Location Products. This will be added to Consumption Days when calculating Recommended Order.

Note: The Recommended Order quantity will never be negative. If the [Need - Have] calculation results in a negative number, the Recommended Order quantity will be a red zero (0).