… even when the available quantity is less than reorder level!

Available quantity is defined by stock-in-hand less all issue commitments, such as

• allocated to customer order,
• on delivery order,
• released to manufacturing order,
• kitted to manufacturing order and
• picked on transfer order-out.

This is used for committing any further issues.

However for reordeing items, we also need to consider all expected receipts, such as

• on purchase order,
• goods in,
• on transfer order-in and
• on manufacturing order.

Otherwise, we'd continue to reorder, even when, say a large quantity is already sitting in our warehouse, waiting inspection. Once we add these expected receipts, we get Expected Supply. Only when the Expected Supply falls below, the item shows up in the Reorder Status.