Reorder Point

Mantissa supports two types of reorder point: Base Reorder Point and Advanced Reorder Point. You can request reorder point via a POST request to the invocation endpoint, specifying in the invocationType parameter the type of reorder point you want to generate (reorder-point or adv-reorder-point). See more at Invoke Mantissa.

In Mantissa, when asking for reorder point computation you will receive always the estimated reorder point for each item in your inventory at level item. It is not possible to ask for reorder point at a different aggregation level.

warning

Reorder point computation is based on historical data for both sales orders and purchase orders. It is possible to compute reorder point only if the identifiers of the items sold (in the sales orders) are the same as the ones purchased (purchase orders).

Available reorder point types:

• Base Reorder Point (reorder point): computed based on historical data and base safety stock calculation;
• Advanced Reorder Point (adv-reorder point): exploits demand predictions, lead time predictions, and advanced safety stock calculation.

Base ROP

The base version of reorder point is computed as:

$$ROP_{base} = \overline{d} \cdot \overline{l} + SS_{base}$$

where $\overline{d}$ is the mean of the historical daily demand, $\overline{l}$ is the mean of the historical lead time in days, and $SS_{base}$ is the base safety stock computed as explained in the Base Safety Stock section.

Advanced ROP

The advanced version of reorder point is computed as:

$$ROP_{adv} = \tilde{d_{\tilde{l}}} + SS_{adv}$$

where $\tilde{d_{\tilde{l}}}$ is the predicted demand for the predicted lead time, and $SS_{adv}$ is the advanced safety stock computed as explained in the Advanced Safety Stock section.

Requesting a Reorder Point

To request a reorder point computation, you need to have a collection with historical data for sales orders and purchase orders on Mantissa. You can create a collection and upload your data following instructions in the Collection section.

Once you have uploaded your sales orders and purchase orders data, you can request a reorder point computation by sending a POST request to the invocation endpoint, with reorder-point or adv-reorder-point as invocationType. See more at Invoke Mantissa.

Reorder point invocations do not require any additional arguments.

Interpreting the Reorder Point Results

The results of a reorder point request will provide you with the estimated reorder point for each item in your inventory.

Here is provided an example for a Reorder Point.

Suppose you have three items in your inventory: item1, item2, and item3.

Example

The output, in json format, will be:

[
  {
    "ItemCode": "item1",
    "ReorderPoint": 100
  },
  {
    "ItemCode": "item2",
    "ReorderPoint": 80
  },
  {
    "ItemCode": "item3",
    "ReorderPoint": 50
  }
]