## Technote (FAQ)

## Question

Is it expected that an item should be selected for reorder if the reorder point is less then the current balance?

## Cause

When the reorder point is 0 and the available balance is greater than 0 and less than 1 (such as .5), then the item will get selected for reorder.

## Answer

The order quantity, expressed in issue units, is calculated from this formula:

Order Quantity = [(Reorder Point + 1) - Quantity on Order - Available Balance]

The Maximo reorder algorithm applied to the following scenarios will establish these reorder quantities:

If the Available balance is .5,

Order Quantity = [(0 + 1) - 0 - .5] = 0.5, so a PR will get generated;

If the Available balance is 1,

Order Quantity = [(0 + 1) - 0 - 1] = 0, so a PR will not get generated;

If the Available balance is 0,

Order Quantity = [(0 + 1) - 0 - 0] = 1, so a PR will get generated;

In response to multiple client scenarios, a new business rule and functionality has been implemented in 7.1.1.5. In this new version, a PR will NOT generate in the scenario where the available balance is 0 and less than 1.

In the case where the available balance is greater than the reorder point, the reorder routine will NOT execute for the item. The 'Reorder Point +1' rule only will be applied to serve as the basis for setting the order quantity. Once reorder is initiated, the process will reorder to achieve a balance equivalent to 'Reorder Point + 1' at a minimum.