Inventory parts, inventory and ordering

Inventory Question with Quantity

Inventory Question with Quantity

Postby Sauvageaus » Thu Apr 02, 2015 6:18 am

We don't inventory many things, but we do inventory Bulbs, Filters, Wiper Blades, and small stuff like that.

I entered into the Inventory a 194 Bulb and it has when we want to restock and stock on hand. The problem is when we make one order from the vendor there are 10 bulbs in the 1 box. So if i put the restock to 0 and stock on hand 1 one, then use that part # on a invoice it will show I have 0 on hand and want a restock, when I actually would have 9 194 Bulbs remaining. Then I thought maybe I could put restock to .1 and on hand to 1.0 , then when I add it to an Invoice I could put .1 and it would work fine, but then I realized that .1 affects the price of the bulb. So, just wondering how people do this when items come as a pack/box with more than 1 in there.

Hope I explained this well enough.
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Re: Inventory Question with Quantity

Postby ricmorin » Thu Apr 02, 2015 6:49 am

With inventory parts and restocking, I always take into consideration the package quantities of reorder. There are two ways to handle this.

My first question regarding your specific situation is this: how are you billed for these bulbs? Ten dollars for one box of ten or 1 dollar each for 10 bulbs?

.1 only affects the price of the bulb if you enter the individual price rather than the box price. If you do indeed pay one price and your invoice says 1 box of 10, then .1 is the correct sell quantity.

We add a note into the parts description field that indicates these 'less than 1' sell quantities. See example below....

inventory1.png
 


The green circle is where we indicate the sell quantity. In this example the parts comes in 1 box of 50. Each disc is .02. The red square is our reorder, so to have the program ask for 1 during reorder, just make the difference between these two numbers equal to 1.

My cost in this example is what I pay for the entire box, so selling these each at .02 works fine.
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Re: Inventory Question with Quantity

Postby Sauvageaus » Thu Apr 02, 2015 8:21 am

If I put the stock at 1 and restock at .1 then when they restock i'll have 1 bulb left and then another box so I'll have 11 bulbs but on hand will show 1.1 or 1?
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Re: Inventory Question with Quantity

Postby ricmorin » Thu Apr 02, 2015 9:54 am

If you want a minimum level of one bulb(.1), and will be buying a box of 10(1), then set reorder point to .1 and stocking level to 1.1. When you create the PO for this part, it will show 1 (one box of 10).

Makes sense?
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Re: Inventory Question with Quantity

Postby Sauvageaus » Thu Apr 02, 2015 9:55 am

If I leave it at 1.0 Stocking Point and restocking point at .1 then when I restock it sends .9 to the vendor, but they will send 1 box which would be 1.0 so when it updates for on hand it will be 1.0 but really I'd have 1.1, so when I get down to .1 I will have .2 and then when I restock again it will be 1.2 which will only show 1.0 etc.
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Re: Inventory Question with Quantity

Postby Sauvageaus » Thu Apr 02, 2015 10:06 am

ricmorin wrote:If you want a minimum level of one bulb(.1), and will be buying a box of 10(1), then set reorder point to .1 and stocking level to 1.1. When you create the PO for this part, it will show 1 (one box of 10).

Makes sense?


Sorry, just read this after posting what i did, yeah that makes a lot of sense.

so if I want to have 2 bulbs on at all times i should do .2 reorder and stocking level 1.2 and have on had right now at 1.2 (even though i have only 10 bulbs (1 box) on hand right now) it should even out once i get down to 2 bulbs left and order 1 box 10 bulbs the on hand will be 1.2.
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Re: Inventory Question with Quantity

Postby ricmorin » Thu Apr 02, 2015 10:08 am

Sort of...

If you only have 10 bulbs right now, adjust your on hand value to 1. Otherwise all else is good.
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Re: Inventory Question with Quantity

Postby ricmorin » Thu Apr 09, 2015 5:48 am

Just a clarification on the image above. If you are selling in fractions and it's a box of 10, your individual unit should be .1, not .01 as indicated in your description field. Sorry I missed that earlier.

Everything else ok so far?
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Re: Inventory Question with Quantity

Postby Sauvageaus » Wed Apr 22, 2015 8:29 am

ricmorin wrote:Just a clarification on the image above. If you are selling in fractions and it's a box of 10, your individual unit should be .1, not .01 as indicated in your description field. Sorry I missed that earlier.

Everything else ok so far?


Yeah, got everything fixed and added the inventory for Oil Filters too, each box has 12 in it so had restock at 0 and stock level 12, but if i want to restock at 1, I could have it restock at 1 and stock level 13?
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Re: Inventory Question with Quantity

Postby ricmorin » Wed Apr 22, 2015 9:11 am

Sauvageaus wrote:
ricmorin wrote:Just a clarification on the image above. If you are selling in fractions and it's a box of 10, your individual unit should be .1, not .01 as indicated in your description field. Sorry I missed that earlier.

Everything else ok so far?


Yeah, got everything fixed and added the inventory for Oil Filters too, each box has 12 in it so had restock at 0 and stock level 12, but if i want to restock at 1, I could have it restock at 1 and stock level 13?

Yes. That is fine.
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Re: Inventory Question with Quantity

Postby Sauvageaus » Fri Jun 12, 2015 12:42 pm

Trying to find the best way to keep track of the inventory. As the picture shows I have stocking at 1.4 and the restock at .2. When I get to .2 and Reorder the Oil Filters (1 Order = 1 Box of 12 Filters) It shows up in the order as 1.2 to the Vendor. Before I had it where it was Restock 2 and Stocking Level 14, but when I would order it then it would show in the order I need 12 orders which would be 12 boxes of 12. So is the way I have it the best option for now?
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Re: Inventory Question with Quantity

Postby ricmorin » Fri Jun 12, 2015 1:17 pm

Ok. Let's review.

One 'unit' is a box of 12 filters. Each filter is .083 (1 divided 12), not 0.1 each.

The problem with this bulk quantity is does not divide evenly. You would either enter .08 or .09 for each, but every time you used one your inventory goes off.

What I do in this case is sell each filter as 1 unit. Then I have a note and manually adjust my order during restock. I'll explain.

In your example it appears you want a minimum of 2 filters, then you need to order a box of 12. Reorder point will be 2. Stocking level will be 14. When you create a PO from Restock Inventory, you will be prompted to buy 12. Here's where you'll need to intervene.........

Electronic Vendor: Assuming that the vendor shows 1 unit as a pack of 12, I manually change the quantity on the PO to one and place the order. Then I go back to the PO and change the quantity back to 12, modifying the cost by dividing by 12 and inputting that figure into the PO as well. Receive as usual.

Phone Vendor: If you are just calling this in, just ask for one case and leave the PO alone. Divide the cost on your invoice by 12 and make sure this matches the number on your PO. Adjust if necessary and receive.

Selling less than whole units only works if it divides evenly.
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Re: Inventory Question with Quantity

Postby Sauvageaus » Mon Jun 15, 2015 7:42 am

ricmorin wrote:Ok. Let's review.

One 'unit' is a box of 12 filters. Each filter is .083 (1 divided 12), not 0.1 each.

The problem with this bulk quantity is does not divide evenly. You would either enter .08 or .09 for each, but every time you used one your inventory goes off.

What I do in this case is sell each filter as 1 unit. Then I have a note and manually adjust my order during restock. I'll explain.

In your example it appears you want a minimum of 2 filters, then you need to order a box of 12. Reorder point will be 2. Stocking level will be 14. When you create a PO from Restock Inventory, you will be prompted to buy 12. Here's where you'll need to intervene.........

Electronic Vendor: Assuming that the vendor shows 1 unit as a pack of 12, I manually change the quantity on the PO to one and place the order. Then I go back to the PO and change the quantity back to 12, modifying the cost by dividing by 12 and inputting that figure into the PO as well. Receive as usual.

Phone Vendor: If you are just calling this in, just ask for one case and leave the PO alone. Divide the cost on your invoice by 12 and make sure this matches the number on your PO. Adjust if necessary and receive.

Selling less than whole units only works if it divides evenly.


I did talk with main guy I order with the vendor and he said if he saw 12 boxes he'd know just to change it to 1 order, they know we don't need 12 boxes of filters on one order.

Yeah I'd say its easier to have the 2 and 12 then .2 and 1.4 or dealing with the .08/.09 that would be a mess.
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