Purchase Demands & Reordering

The Purchase Demands queue consolidates all stock replenishment requirements across the enterprise — unifying customer sales order backorders and automated reorder point deficits.

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Demand Generation & Reordering Logic

flowchart TD
    A[Sales Order Confirmed with Stock Gap] --> C[Purchase Demand Queue]
    B[Net Stock Falls Below Reorder Point] --> C
    C --> D[Consolidate by Preferred Supplier & MOQ]
    D --> E[Click Generate Purchase Orders]
    E --> F[Create Vendor-Grouped Draft POs]

1. Net Inventory Position & Shortage Triggers

The system evaluates stock replenishment using the enterprise net position formula:

Net Available Stock = Available On-Hand + On-Order (Open POs) - Allocated Reservations - Quarantine

• Shortage Condition: A replenishment demand is triggered whenever:

  Net Available Stock < Reorder Point (Safety Stock Level)

• Suggested Order Quantity:

  Suggested PO Quantity = max(Max Stock Level - Net Available Stock, Vendor Minimum Order Quantity)

  If the vendor specifies a Purchasing Pack Size (e.g. box of 25), the suggested quantity automatically rounds up to the nearest multiple.

2. Backorder Pegging & Cross-Docking

• When confirming a customer Sales Order with an inventory gap, selecting Generate Backorders creates a demand record with direct relational pointers to the sales_order_id and sales_order_line_id.
• When the resulting Purchase Order is received at the dock, warehouse operators receive an immediate Backorder Cross-Dock Prompt, allowing goods to be routed directly to the staging area for immediate customer dispatch.

3. Supplier Consolidation Algorithm

• Demands across multiple products are automatically aggregated by Preferred Supplier.
• Sourcing data (Supplier SKU, purchasing currency, standard lead time, and contracted unit price) is pulled automatically from supplier catalogs to build complete draft Purchase Orders with a single click.

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Step-by-Step Workflows

1. Generating Purchase Orders from Demands

1. Go to Purchasing → Demand (/purchase-orders/demands).
2. Review the consolidated shortage list. Filter by warehouse facility or preferred supplier.
3. Select the check-boxes for the lines you wish to purchase.
4. Click Generate Purchase Orders.
5. The system creates draft Purchase Orders grouped by vendor, automatically populating vendor costs and quantities.
6. Open the generated draft Purchase Orders (/purchase-orders) to review and send to suppliers.

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Field Reference

Field	Description
Product	Replenishment item requiring stock.
Required Quantity	Calculated units needed to satisfy backorders or reach max stock.
Source Sales Order	Linked customer order number for direct backorder pegging.
Preferred Supplier	Default vendor configured on the product record.
Expected Unit Cost	Contracted unit purchase price in supplier currency.