Reorder Point and Reorder Quantity Calculation

MAXIMO reorders the quantity for an item whenever the current balance is less than or equal to the reorder point (ROP). The quantity to be ordered is calculated as follows:
Round the difference of ROP and Current balance to the nearest multiple of EOQ.



Example:

Assume Reorder Point = 30, Current Balance = 8, Economic Order Quantity =10.

Difference of ROP and current balance becomes 30 - 8 =22.

MAXIMO rounds the difference (22) up to 30, which is the nearest multiple of the order quantity (10). This is the quantity, MAXIMO suggests you for reordering. You can override it.

When the current balance is not less than the reorder point, and Ignore Reorder Point is checked, then EOQ becomes the suggested reorder quantity. 

Courtesy: An old compilation from Infy Team