Order Formula Codes (OFC) Summary

Related information:

OFC Part Type Qualification for Ordering Ordering Quantity Economic Order Quantity (EOQ) Formula Reorder Point Formula
M All parts; it automatically calculates and tracks parts ordering ‘lead time’, resulting in better alignment of ordering to the parts you sell, increased turns and a better fill rate. Inventory + On Order + On Back Order < Reorder Point for OFC M.

Uses the Minimum and Maximum values generated by parts using OFC M

The order quantity = Maximum - Inventory - On Order - On Back Order.

 N/A

M

 
1 Seasonal increasing or decreasing demand of 10 or more sales Inventory + On Order + On Back Order < Reorder Point If greater than EOQ or the quantity is below the Reorder Point. Adjust up to the next package quantity and set quantity.

Ö(Last 12 mths sales x .50/.12 x Net Price)

# 1
2 New parts with no or little sales history Inventory + On Order + On Back Order < Reorder Point If greater than EOQ or the quantity is below the Reorder Point. Adjust up to the next package quantity and set quantity. Ö(3 x larger of last mth, 2 mths ago or 3 mths x Ordering Cost /.12 x Net Price) # 2
5 Non-stocking part (sales accumulation only) N/A N/A N/A N/A
6 Manually controlled. User sets the ROP and Order Quantity Inventory + On Order + On Back Order < Reorder Point If greater than EOQ or the quantity is below the Reorder Point. Adjust up to the next package quantity and set quantity. Set manually by group file maintenance, or in the Parts Profile - Ordering Information tab Set manually by group file maintenance, or in the Parts Profile - Ordering Information tab
7 Slow moving, 5 sales or less. Attempts to maintain 1 part on hand at all times. Inventory + On Order + On Back Order < Reorder Point Quantity reaches a reorder point of 1(or less). Adjust up to the next package quantity and set quantity. Not Computed Set at 1
8 Slow moving, 10 sales or less. Attempts to maintain 2 or 3 parts on hand at all times. Inventory + On Order + On Back Order < Reorder Point Quantity reaches a reorder point of 2 (or less), but will always order a quantity of 2 to replenish stock. Not Computed Set at 2
9 Regular Stock Order:
Seasonal increasing/decreasing demand of 10 or more sales		 Inventory + On Order + On Back Order < the Reorder Point If the Lead Time is not 24 weeks, use the expected sales during the Lead Time specified for the part. Expected sales during Lead Time - On Hand - On Order - Back Order (always order enough to reach the reorder point). Not Computed # 3
9 Quarterly Stock Order
Fast moving, 100 sales or more		 Stock Order Type is a quarterly order (First Quarter, Second Quarter, etc.) If the Lead Time is 24 weeks, sales 12 months ago and low cost + sales 11 months ago + sales 10 months ago plus greater than (Reorder Point or 9 months ago + 8 months ago + 7 months ago) - (Inventory + On Order + On Back Order). Order the quantity if the result is positive. Not Computed # 3
9 Regular Stock Order
Fast moving, 100 sales or more and low cost		 Stock Order Type is Stock Order when Inventory + On Order + On Back Order < Reorder Point, except at quarterly order time If the Lead Time is 24 weeks,twice the Reorder Point - (On Hand + On Order + Back Order). Not Computed # 3
D Slow moving, 10 sales or less. Attempts to maintain 2 parts on hand at all times. Inventory + On Order + On Back Order < Reorder Point Quantity reaches a reorder point of 2.
Adjust up to the next package quantity and set quantity.

Not Computed

 

 Set at 2

Revision: 2025.02