Stock out usage

Stock-out situations can occur when an unanticipated demand depletes your stock before you have a chance to replenish it. This may be due to an exceptional, nonrecurring sale or an unreliable usage history. The best proactive solution is to ensure that your sales staff is recording lost business accurately. Lost business transactions should be entered in Sales Order Entry when you are unable to satisfy a customer’s request for product. These lost business transactions can be set up to update usage; thereby, ensuring a more accurate reflection of customer demand.

If you have not instituted a policy of recording lost business, the stock out usage control options in Product Replenishment Setup-Usage can be used to prevent products from being frozen when they have been out of stock for 15 days or more, and override the usage with the previous month’s usage value.