Reorder Policies

Overview

Reorder Policies automate inventory planning by defining minimum and maximum stock levels per part and warehouse. The system generates reorder suggestions when available stock falls below the reorder point.

Policy Structure

Each reorder policy defines:

Field	Type	Description
`part_id`	UUID	Part to manage
`warehouse_id`	UUID	Warehouse location
`min_qty`	number	Minimum stock level (required)
`max_qty`	number	Maximum stock level (optional)
`reorder_point`	number	Trigger level (optional, defaults to min_qty)
`safety_stock`	number	Buffer quantity (optional)
`lead_time_days`	number	Procurement lead time (optional)
`preferred_vendor_id`	UUID	Preferred supplier (optional)

Policies are unique per (part_id, warehouse_id) combination. Creating a duplicate updates the existing policy.

Accessing Reorder Policies

Navigate to Inventory > Políticas de reposición (/inventory/reorder) to manage policies.

Requires inventory:read to view. Creating/editing requires inventory:full_access.

Creating a Policy

Open Policy Dialog

Click Nueva política in the policies page.

Select Part

Choose the part to manage:

Filter by category for easier selection
Search by part code or name

Select Warehouse

Choose the warehouse location for this policy.

Each part can have different policies per warehouse. For example, critical parts may have higher minimums at main facility vs. remote sites.

Set Minimum Quantity

Enter the minimum stock level:

min_qty = Minimum acceptable stock before reorder

Consider:

Average daily/weekly usage
Lead time to replenish
Part criticality
Storage constraints

Set Maximum Quantity (Optional)

Enter the maximum stock level:

max_qty = Target stock after reorder

Leave blank if no upper limit needed.

Configure Reorder Point (Optional)

Set a different trigger than min_qty:

reorder_point = Trigger for reorder suggestion

Typically:

reorder_point = min_qty + (lead_time_usage)

If not set, system uses min_qty as trigger.

Add Safety Stock (Optional)

Buffer for demand variability:

safety_stock = Extra quantity to cover uncertainty

Consider:

Demand variability
Lead time reliability
Criticality
Cost of stockout

Enter Lead Time (Optional)

Days to receive after ordering:

lead_time_days = Procurement + delivery time

Select Preferred Vendor (Optional)

Choose default supplier for this part/warehouse.

Save Policy

Click Guardar to create or update the policy.

Policy Types

Min Only
Min/Max
Reorder Point
Safety Stock

Minimum Quantity PolicySimplest policy:

min_qty = 10
max_qty = null
reorder_point = null (uses min)

Behavior:

Alert when available < 10
Suggest reorder to bring to min
No upper limit guidance

Best for: Low-value, non-critical parts

Min/Max PolicyClassic reorder:

min_qty = 10
max_qty = 50
reorder_point = null (uses min)

Behavior:

Alert when available < 10
Suggest ordering to max (50)
Order quantity = max - available

Best for: Standard consumables with predictable usage

Reorder Point PolicyEarlier trigger:

min_qty = 5
max_qty = 40
reorder_point = 15

Behavior:

Alert when available < 15
Order before reaching minimum
Accounts for lead time

Best for: Parts with long lead times

Safety Stock PolicyBuffer for variability:

min_qty = 10
max_qty = 50
reorder_point = 20
safety_stock = 5

Behavior:

Reorder at 20
Target max of 50
Maintain 5 as cushion
Never go below safety stock

Best for: Critical parts with variable demand

Reorder Quantity Calculation

When a suggestion is generated:

// If max_qty is defined:
order_qty = max_qty - available_qty

// If only min_qty:
order_qty = min_qty - available_qty

// With safety stock:
order_qty = max_qty - available_qty + safety_stock

Example:

Policy:
  min_qty = 10
  max_qty = 50
  reorder_point = 20
  safety_stock = 5

Current Stock:
  on_hand = 15
  reserved = 3
  available = 12

Trigger: available (12) < reorder_point (20) ✓

Suggested Order:
  order_qty = max_qty - available + safety_stock
  order_qty = 50 - 12 + 5
  order_qty = 43 units

Reorder Suggestions

View automated suggestions at Inventory > Políticas de reposición → Sugerencias button, which navigates to /inventory/reorder_suggestions.

Suggestion View (v_reorder_suggestions)

Shows parts that need reordering:

Column	Description
Part	Part code and name
Warehouse	Storage location
Available	Current available quantity
Reorder Point	Trigger level
Min/Max	Min and max quantities
Suggested Qty	Recommended order amount
Vendor	Preferred supplier
Lead Time	Days to receive

Filtering:

By warehouse
By part category
By criticality
By vendor

Suggestions are calculated in real-time based on current available stock (on_hand - reserved).

Service Functions

Policy operations:

import {
  listReorderPolicies,
  upsertReorderPolicy,
  updateReorderPolicy,
  deleteReorderPolicy
} from '@/services/inventory/reorderPoliciesService';

// List policies for warehouse
const policies = await listReorderPolicies(warehouseId);

// Create or update policy (upsert by part+warehouse)
const policy = await upsertReorderPolicy({
  part_id: partId,
  warehouse_id: warehouseId,
  min_qty: 10,
  max_qty: 50,
  reorder_point: 20,
  safety_stock: 5,
  lead_time_days: 7,
  preferred_vendor_id: vendorId
});

// Update existing policy
await updateReorderPolicy(policyId, {
  min_qty: 15,
  reorder_point: 25
});

// Delete policy
await deleteReorderPolicy(policyId);

Policy Planning Workflow

Analyze Historical Usage

Review past consumption:

Average daily/weekly usage
Usage variability (standard deviation)
Seasonal patterns
Trend analysis

Determine Lead Time

Research procurement time:

Vendor lead time
Approval process
Shipping time
Receiving/inspection time

total_lead_time = order_to_delivery_days

Calculate Safety Stock

Buffer for uncertainty:

safety_stock = Z × σ × √L

Where:
Z = Service level factor (1.65 for 95%, 2.33 for 99%)
σ = Standard deviation of daily demand
L = Lead time in days

Example:

Daily usage: 5 ± 2 units (σ = 2)
Lead time: 10 days
Service level: 95% (Z = 1.65)

safety_stock = 1.65 × 2 × √10
safety_stock = 1.65 × 2 × 3.16
safety_stock ≈ 10 units

Set Reorder Point

When to trigger order:

reorder_point = (avg_daily_usage × lead_time_days) + safety_stock

Example:

Average daily usage: 5 units
Lead time: 10 days
Safety stock: 10 units

reorder_point = (5 × 10) + 10
reorder_point = 60 units

Set Minimum Quantity

Absolute minimum acceptable:

min_qty = safety_stock (or slightly above)

Set Maximum Quantity

Consider:

Economic order quantity (EOQ)
Storage capacity
Shelf life
Capital constraints

max_qty = reorder_point + order_qty

Create Policy

Enter all calculated values into the system.

Monitor and Adjust

Review periodically:

Quarterly for standard parts
Monthly for critical parts
After major usage changes
After lead time changes

Economic Order Quantity (EOQ)

Optimal order quantity to minimize total cost:

EOQ = √((2 × D × S) / H)

Where:
D = Annual demand
S = Order cost per order
H = Holding cost per unit per year

Example:

Annual demand: 1,200 units
Order cost: $50 per order
Holding cost: $2 per unit per year

EOQ = √((2 × 1200 × 50) / 2)
EOQ = √(120,000 / 2)
EOQ = √60,000
EOQ = 245 units

Orders per year: 1200 / 245 ≈ 5 orders

Use EOQ to inform max_qty setting.

ABC Analysis

Prioritize policies by part value/importance:

A Items (Critical)
B Items (Moderate)
C Items (Low Priority)

High Value / High Importance~20% of parts, ~80% of valuePolicy:

Tight control
Lower safety stock (cost)
Frequent review
Accurate forecasting
Preferred vendors

Example:

Critical pump impeller:
min_qty = 2
max_qty = 5
reorder_point = 3
safety_stock = 1
lead_time_days = 14

Moderate Value / Importance~30% of parts, ~15% of valuePolicy:

Standard control
Normal safety stock
Quarterly review
Good forecasting

Example:

Standard bearing:
min_qty = 10
max_qty = 40
reorder_point = 20
safety_stock = 5
lead_time_days = 7

Low Value / Low Importance~50% of parts, ~5% of valuePolicy:

Loose control
Higher safety stock (cheap)
Annual review
Simple min/max

Example:

Consumable fasteners:
min_qty = 100
max_qty = 500
reorder_point = null (use min)
safety_stock = 50
lead_time_days = 3

Best Practices

Start Simple

Begin with min/max only:

Easier to understand
Less data required
Refine over time
Add complexity as needed

Use Historical Data

Base decisions on actual usage:

Review past 6-12 months
Account for seasonality
Identify trends
Validate with stakeholders

Regular Reviews

Schedule policy audits:

A items: Monthly
B items: Quarterly
C items: Annually
After major changes

Document Rationale

Record policy reasoning:

Calculation methods
Assumptions made
Data sources
Review dates

Integration with Procurement

Reorder suggestions drive procurement workflow:

Generate Suggestions

System calculates nightly or on-demand based on available stock.

Review Suggestions

Procurement team reviews list:

Verify quantities
Check budget
Confirm lead times
Consolidate orders

Create Purchase Orders

Generate POs:

Use preferred vendors
Combine parts from same supplier
Negotiate pricing
Submit orders

Track Orders

Monitor incoming:

Expected delivery dates
Track shipments
Prepare receiving

Receive Stock

Process RECEIPT documents:

Reference PO number
Verify quantities
Enter unit costs
Update stock

Stock Management

View current stock levels that trigger policies

Documents

Create receipts from purchase orders

Parts

Set part criticality and attributes

Warehouses

Manage locations for policies

Getting Started

Core Features

Inventory Management

Asset Management

Reporting & Analytics

Administration

Overview

Policy Structure

Accessing Reorder Policies

Creating a Policy

Policy Types

Reorder Quantity Calculation

Reorder Suggestions

Suggestion View (v_reorder_suggestions)

Service Functions

Policy Planning Workflow

Economic Order Quantity (EOQ)

ABC Analysis

Best Practices

Start Simple

Use Historical Data

Regular Reviews

Document Rationale

Integration with Procurement

Stock Management

Documents

Parts

Warehouses

Build docs developers (and LLMs) love

Getting Started

Core Features

Inventory Management

Asset Management

Reporting & Analytics

Administration

Documentation Index

​Overview

​Policy Structure

​Accessing Reorder Policies

​Creating a Policy

​Policy Types

​Reorder Quantity Calculation

​Reorder Suggestions

​Suggestion View (v_reorder_suggestions)

​Service Functions

​Policy Planning Workflow

​Economic Order Quantity (EOQ)

​ABC Analysis

​Best Practices

Start Simple

Use Historical Data

Regular Reviews

Document Rationale

​Integration with Procurement

​Related Topics

Stock Management

Documents

Parts

Warehouses

Build docs developers (and LLMs) love

Overview

Policy Structure

Accessing Reorder Policies

Creating a Policy

Policy Types

Reorder Quantity Calculation

Reorder Suggestions

Suggestion View (v_reorder_suggestions)

Service Functions

Policy Planning Workflow

Economic Order Quantity (EOQ)

ABC Analysis

Best Practices

Integration with Procurement

Related Topics