How does the Reordering Policy Order suggest new orders?

Planning Parameters
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Presenter: Sune Lohse, Chief Strategy Officer

How does a reordering policy order suggest new orders in Business Central?

Let’s take a look at how the reordering policy order suggests new order and I’ll show this in a small drawing but first just to show you on the item card, the reordering policy is inserted on the planning tab.

This is what happens in the video

So here on the planning tab, you could select a reordering policy called order and it is planned with one demand, one supply and I’ll show you how that looks.

Let’s look at the inventory. So present day we have maybe an inventory or maybe we don’t often if it’s a reordering policy order, you wouldn’t have inventory level but you could have it and on the starting day in the planning engine, the planning will run for what, of course, planning in time ahead. So this is starting date and maybe we have three demands and each demand will trigger a supply and it won’t be put together because it’s reordering policy order and this means the inventory level will look like this because there’s a starting inventory, it could be some kind of safety stock.

Each time a demand is triggered that would be a planned order, backwards planned order. In this example, it’s a production order because it’s production item, but it could have been a purchase order or transfer order as well. So the orders lead time will be planned backwards and B, will be available the day before the due date on the trigger and demand.

So, of course, if it’s a production order with different order sizes, the lead time will be different and even though you have two demands on the same day, it would have created two different orders. So with reordering policy order, it creates one Supply/demand.