Reorder Points Tuned to Reality, Not a Fixed Number
Reorder points recalculate as demand and supplier lead time actually change, and every proposal is a draft a planner reviews before a purchase order goes out.
What reorder optimization does
A static reorder point set once and never revisited drifts out of date as demand and supplier performance change. Reorder optimization recalculates the reorder point per SKU from current demand forecast and observed supplier lead time, and proposes purchase quantities on your perpetual inventory ledger.
- Reorder points recalculated per SKU as demand and lead time shift
- Proposed purchase quantity and timing, grounded in the demand forecast
- Safety stock sized to actual observed lead-time variability, not a flat buffer
- Draft-first: every proposal requires a planner's approval before ordering
Core capabilities
| Capability | What it does | What it replaces |
|---|---|---|
| Dynamic reorder points | Recalculates per SKU from current demand and lead time | A fixed reorder point set once |
| Safety stock sizing | Sizes buffer to observed lead-time variability | A flat percentage buffer for every SKU |
| Purchase proposals | Drafts recommended quantity and timing per SKU | A buyer manually reviewing every SKU weekly |
| Draft-first approval | Requires planner sign-off before any order is placed | Automated ordering with no review |
How it works
From signal to approved order
- 1
Track lead time
Actual receipt timing per supplier and SKU is tracked to keep lead-time assumptions current.
- 2
Recalculate the reorder point
Each SKU's reorder point updates as demand forecast and lead time change.
- 3
Propose the order
When on-hand position crosses the reorder point, a purchase quantity and timing is proposed.
- 4
Approve or adjust
A planner reviews the proposal, adjusts if needed, and approves before it becomes a purchase order.
A proposal, not a purchase
Reorder optimization proposes; it does not commit spend. AgentFence policy requires human approval before a proposed reorder becomes an actual purchase order, and the reasoning behind each proposal - demand forecast, lead time, safety stock - is preserved for review.
Frequently asked questions
How is a dynamic reorder point different from a fixed one?
A fixed reorder point is set once and stays constant until someone manually revisits it. A dynamic reorder point recalculates as the underlying demand forecast and supplier lead time change, so it stays accurate without manual maintenance.
Does reorder optimization place purchase orders automatically?
No. It drafts a proposed quantity and timing for a planner to review; a purchase order is only created once a person approves the proposal. This is the same draft-first principle used across Fintra's inventory intelligence capability.
How is safety stock calculated?
Safety stock is sized to the observed variability in supplier lead time and demand for each SKU, rather than applying the same flat percentage buffer to every item - a fast-moving SKU with an unreliable supplier gets a different buffer than a stable, reliable one.
Can I override a reorder proposal?
Yes. Every proposal is fully editable - you can change the quantity, timing, or dismiss it entirely - and your decision, along with the original proposal, is preserved for future reference.
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