Set an Inventory Replenishment Policy

You must first set a replenishment policy for your inventory.  After you do so, inventory that needs to be replenished shows up in the Replenishment List.

To set the inventory replenishment policy, complete the following steps:

1. Go to Materials > Settings.

The Materials Settings screen opens.

2. Click the Yes radio button for the "Decrement inventory when parts are used in a Work Order" option.
3. Choose one of the following Costing Methods:
   • FIFO (First In First Out)—The first items of a particular material received into inventory are the first ones used and invoiced.
   • LIFO (Last In First Out)—The last items of a particular material received into inventory are the first ones used and invoiced.

   FIFO/LIFO Example

   Three different shipments of an item are received into inventory over a period of time.  Due to inflation and pricing differences from different suppliers, the item has a different cost in each shipment.

   

4. Choose one of the following Pricing Methods:
   • Cost—This is the actual price that was paid for the item
   • Most Recent Purchase Price—This is the current cost for the item, regardless of how much it cost when it was actually purchased
   • Catalog Price—This is the price the item is listed at in the catalog, regardless of the actual cost the company paid or would pay for it
5. Chose one of the following in the "Creating replenishment lists from" field:
   • Depleted Inventory
   • Product Browser
6. Choose an Inventory Replenishment Policy:

   Min-Max—Allows you to specify minimum and maximum inventory levels for materials.  When inventory falls to or below the minimum level, it appears in the Replenishment List.  You then place a new order to bring the inventory up to the specified maximum level.

   Order Point—Allows you to specify an inventory level at which materials should be re-ordered.  When inventory falls below the re-order level, it appears in the Replenishment List.  You then place a new order to bring the inventory above the re-order level.

7. Click OK.