How the replenishment re-order point is calculated

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