"Purchase suggestions" refer to recommendations or suggestions generated by software to cover the need for materials or products within a company. These suggestions are typically based on various factors such as current inventory levels, forecasted demand, supplier lead times, and other relevant variables.
Typical functions of software in the area of "purchase suggestions" could include:
Inventory analysis: Reviewing current inventory levels and inventory movements to determine the need for reordering.
Demand forecasting: Using historical data, trends, and forecasts to estimate future demand and suggest appropriate orders.
Minimum stock and reorder point: Taking into account minimum stock levels and reorder points to ensure that orders are triggered in a timely manner to avoid stockouts.
Supplier performance: Incorporating supplier performance data such as lead times, delivery reliability, and quality to support the selection of the best suppliers for orders.
Optimization of order quantity: Calculating the optimal order quantity based on various factors such as order costs, holding costs, and demand variability.