Using the PAR feature will allow you to easily access recent sales data for each product to help determine how much inventory needs to be reordered based on the current on-hand levels. By analyzing the total sales over a 90 day period, the system automatically assigns a PAR ( Periodic Automatic Replenishment) value to each product. This enables you to forecast the amount of inventory required to maintain sales of your most popular products over a specified period of time. By utilizing this feature you will be able to make better data-driven purchasing decisions.
How PAR-Reorder works
1. The Reorder page can be accessed by clicking “Inventory” then “Reorder”.
2. When first loading the Reorder page, a help screen will display at the top of the screen. This describes the formulas used to generate the values underneath the “PAR” and “Quantity Needed” columns. This can be closed out by clicking the “X” icon on the top right corner.
3. That information will always be available for review by clicking the “?” icon on the top right corner of the screen.
4. Toward the middle of the screen are the “Replenish” settings.
a. You can choose how many day’s worths of inventory you want to re-order for. You can view up to a max of 30 days.
b. You can also filter by certain “Categories” or “Suppliers”. NOTE: These drop- down lists also search fields.
c. Safety margin “Percentages” can be set here. You can select percentages in increments of 5, up to 100%.
5. Below “Replenish” settings are the report detail columns.
a. The “Supplier”, “Category”, & “Product” columns all function the same way as in other areas of the system. You can click on it to sort by ascending or descending.
b. “On Hand” refers to the current amount of inventory you have in your system. You can also sort this by ascending or descending.
c. When calculating “Average Sales” per day, the system only counts days that inventory was in stock. If a product was out of stock on a given day, it will not bring down the average daily sales numbers.
i. If there aren’t any/enough sales for the system to make a confident prediction, a “?” symbol will show. Hovering your cursor over this symbol will reveal more information as to why a prediction wasn’t made.
d. “Days Remaining” will divide the current on-hand amount by the average daily sales.
e. “PAR” values are calculated as follows: (Avg sales velocity + safety margin) x number of days worth of inventory customers want to re-order for.
f. The “Qty Needed” value is calculated as follows: PAR value - qty. on Hand.