Definition: The minimum amount you should order based on past sales performance.

Note: eliminates negative values. A lot of filters go into the equation to make up the value.

Note: this calculation uses a date range to determine average daily units which is unrelated to the choice of days the stock is needed for. 

Equation: In Stock Average Units per Day* (number of days stock is needed for + Buffer days*) -* quantity on hand

Example: This equation is a BIG one! So let's break it down number by number by using the snip below!

The red values are going to be filtered values the retailer will pick at the top of the dashboard; for this example, they would like 4 weeks of stock (28 days) and would like 3 buffer days. Do you remember PEMDAS? It's the order in which long equations are executed. We will start this equation with what's in the parenthesis, P! For our examples, it will be 28+ 3 which equals 31. Then we move to the multiplication, M (we skipped E because there are no exponents). We will take In Stock Average Units per Day, 3.7 in this example, and multiply that by what we got in the first step, 31 and get 114.7. we've come to the final step of taking the amount we already have on hand from what we are suggesting you order. So take 114.7 subtract 66 = 48.7 and the calculation rounds that up to 50.