Manual Reordering Rules and MBQ Configuration in Inventory Management
Efficient inventory management ensures the right products are always available without overstocking. Two important tools that support this are Manual Reordering Rules and MBQ (Minimum Base Quantity) Configuration.
Manual Reordering Rule
A Manual Reordering Rule alerts users when stock reaches a predefined minimum level. Unlike automated replenishment, it requires users to manually initiate reorders, allowing better control based on demand and business judgment.
Configuring MBQ in Products
To set up MBQ, open the Product Master in the Inventory module and select the product. Under the MBQ tab, configure details like Sales Classification, Company, and Scheduled Days. Then go to Settings → Technical → Scheduled Actions → MBQ Process and run the scheduler manually or automatically. After running it, verify the Min/Max Quantities in the product form.
MBQ Formulas
- Average Sold Quantity/Day = Total Sold ÷ MBQ Days
- Minimum Stock = Average Sold × Stock Holding Days
- Maximum Stock = Average Sold × Reorder Level Days
- Forecasted Stock = On Hand + Incoming − Outgoing
- To Order Quantity = Maximum Stock − Forecasted Stock
Creating Purchase Orders
Open the Replenishment screen in Inventory. MBQ-configured products appear here with calculated quantities. Review and edit if needed, When select products then click “Order to Max” to generate purchase orders automatically, or “Order Once” to create one manually for a single product.
Verifying Purchase Orders
In the Purchase module, go to the RFQ screen to view POs generated from MBQ. If products share the same vendor, a single PO is created; otherwise, separate POs are generated. The Source Document (e.g., OP/00002) identifies MBQ-generated orders. Verify vendor, quantity, and product details before confirming.
Manual Reordering and MBQ ensure timely replenishment with full user control. Together, they help maintain optimal stock levels, reduce shortages, and improve procurement efficiency.
