Stock refers to the basic information on items contained within a store (or group of stores in the same company). Think of stock as a subset of parts—every item in stock must be a part, but not every part must be in stock. Stock is a list of items held; a parts list is your list of items available for purchase from outside sources or items that you generally do not stock.
Define the store stocking the part, and then enter automatic reorder information for the part. Requisition items according to the following formula:
Actual quantity in stock + quantity
on order + quantity requisitioned
quantity reserved < reorder level
The quantity reserved includes part reservations, allocations, and outstanding store transfers.
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Consider how the stock item is reordered. The inventory unit of measure may be 'each' but the purchasing unit of measure may be based on item, case, or gross. If the maximum level is 20 and your minimum level is 10, but you reorder the item by the case (with 24 items per case), you need to adjust levels. Consider the vendor lead time. Some stock items may be reordered every 60 days and others may be reordered every 30 days. You may want to order a higher quantity of items for those 60-day periods. Also, some items take longer to procure and you may have to increase reorder amounts to have enough on hand. |
You can set the stock method to min/max, reorder level, or on-demand. The INVMETH installation parameter determines the default stock replenishment method for new stock records; however, you can modify the stock method for a stock record as necessary.
If you are using LIFO/FIFO as your pricing method for stock, Datastream 7i records the unit price of each receipt transaction for stock so that each subsequent inventory transaction is recorded at the appropriate unit price.
LIFO/FIFO is a time-based inventory pricing method. LIFO pricing mandates that you will consume the most recently purchased materials before using the materials that were purchased first. FIFO inventory pricing mandates that you will consume the materials purchased first before using the most recently purchased materials.
Refer to the following topics for information on defining and managing stock information.
Setting the Stock Replenishment Method for Stock Parts
Defining Stock Information from a Part Record