Min / Max Levels and Ratios

I have a product set up with minimum and maximum levels and it has a ratio.  But when I use the Auto Order option, this product is not appearing.

Solution

The problem might be that there is a ratio AND the difference between your min and max is less than the ratio.

IE    min 150 max 600, but ratio is 572.

If your current stock holding is down to 119

     – then the auto order might try and order 1

     – but that would add 572 to the 119 giving  691

     – it knows that is over the max, so it’s not going to order it!!

I have just done a test and I am more confident that is the reason.

My item – min 50, max 200 and I had only 47 in stock. The ratio was 175.

Using the auto order did not create a line. (I assume that with 47 + 175 giving 222, and that is > 200

I changed the max to be 225 and now the auto order does order one of the item.

If you are at your MINIMUM exactly and you add the ratio to that – then your MAXIMUM must be at least that value or higher – otherwise that combination of Min and max is not good enough.

We do not recommend the use of EOQ with Min / Max levels and Ratios.