🎯 Understanding the Order Up To Level
The Order Up To level represents the ideal target stock level for a product at the moment of purchasing. It answers the question: "If I place an order today, what total stock level do I need to reach to satisfy demand until my next order arrives?"
This value acts as the "ceiling" for your inventory planning. Optiply calculates the purchase advice by attempting to fill your current stock up to this specific level.
The Calculation Formula
The Order Up To level is a calculated field derived from two main components:
Order Up To = Forecast (Demand over Cycle) + Safety Stock
Forecast (Demand over Cycle): The expected sales volume during the specific time period (cycle) that needs to be covered.
Safety Stock: The buffer stock added to account for demand fluctuations and supply chain risks (calculated based on your desired Service Level).
What is the "Cycle"?
The definition states that this gives you enough stock for one cycle. In Optiply, this cycle represents the total time period you are purchasing for, which is the sum of:
Lead Time: The time it takes for the supplier to deliver the goods.
Reorder Period (Interval): The time between your current order and your next scheduled order placement.
Relationship to Purchase Advice
It is important to distinguish between the Order Up To level and the Purchase Advice.
Order Up To: The target total amount.
Purchase Advice: The amount you actually need to buy to reach that target.
Purchase Advice = Order Up To - Current Free Stock
Can I Change the Order Up To Level?
No, this value cannot be changed manually.
Because the Order Up To level is the result of a mathematical calculation based on your settings, you cannot edit the number directly. However, you can influence it by adjusting the inputs used in the calculation:
Increase it by: Increasing the Service Level (which increases Safety Stock) or manually increasing the Forecast.
Decrease it by: Decreasing the Service Level or manually decreasing the Forecast.
❓ Frequently Asked Questions (FAQs)
Why is the Order Up To level higher than my Forecast?
The Order Up To level includes the Safety Stock buffer. Therefore, it will always be higher than the raw demand forecast to ensure you have protection against unexpected sales spikes or delivery delays.
Does the Order Up To level include the Minimum Order Quantity (MOQ)?
No. The Order Up To level is the inventory requirement. Supplier constraints like MOQ are applied after this calculation to determine the final Purchase Advice.
If I have enough stock, will the Order Up To level change?
The Order Up To level generally remains stable based on the forecast and risk settings. However, your Purchase Advice will change (likely to 0) because your Current Stock is already close to or above the Order Up To level.
How often is this number updated?
Optiply recalculates the Order Up To level nightly based on the latest forecast data and any changes to your safety stock settings or lead times.
The Order Up To level represents the ideal target stock level for a product at the moment of purchasing. It answers the question: "If I place an order today, what total stock level do I need to reach to satisfy demand until my next order arrives?"
This value acts as the "ceiling" for your inventory planning. Optiply calculates the purchase advice by attempting to fill your current stock up to this specific level.