This is about how the re-order point is calculated in the Inventory Stock Item on the Replenishment tab. This is shown in Inventory > Processing > Replenishment > Calculate Replenishment Parameters and then applied to Inventory > Processing > Replenishment > Apply Replenishment Parameters.
It uses the following formula:
Average Daily Sales Demand * Average Vendor Lead Time.
In the example below the inventory item has the replenishment analysing the last 3 months of data, this is how MYOB Acumatica would calculate the following scenario of 3 sales orders delivered and 3 purchase orders receipted over the course of March, April, May when performing the replenishment on June 1.
| Total | Calculation to make the total | Part of the formula |
|---|---|---|
| 6.52 | 600 Qty of total sales / 92 Days (31 = May, 30 = April, 31 = March) | Average Daily Sales Demand |
| 17 | 51 total vendor day lead time (20 days in May, 17 Days in April, 14 Days in March) / 3 (total months) | Average Vendor Lead Time |
| 110.87 | Re-order Point |