Recommended Order refers to the order quantity for a particular product that is recommended based on system-generated calculations. These calculations can be based on such factors as the quantity on hand, the quantity on order, anticipated future consumption, and historical usage quantities. The basic Recommended Order formula is [Need - Have]. The system calculates how much is needed, then subtracts the amount the location already has. The remaining quantity is the recommended order – the amount to order to cover what is needed.
The Recommended Order Setup screen allows authorized users to determine when and how Recommended Order quantities will be calculated for use as a reference when purchasing. The Recommended Order preferences set up at the corporate location in Enterprise Manager will be used by default unless they are updated for the location through this Net-Chef screen.
If a location is a supplier for other locations (e.g. a commissary), that location’s consumption data can be based on the historical figures from the locations it supplies. See "Aggregate Consumption" for more details.
Related Topics