Rate of Usage
Rate of Usage (ROU) is an algorithm that calculates weighted average usage based on item movement. Rate of Usage is then used in a formula to calculate the daily “projected usage” for the item. This figure can also be used to dynamically update item reorder points and restock levels to assist ordering (i.e. to generate an order for quantities projected to be sold in a given timeframe).
The ROU Scale is a user defined setting that allows you to scale this daily figure to display for a set number of days. This scale can be different for each Fred Office Plus user and is configurable via the Tools menu Item Rate of Usage > Settings tab.
When would I use it?
• Dynamically set restock levels and reorder points.
• Suggest an order based on the ROU figure.
• Suggest an order based on the reorder points/ restock levels.
Rate of Usage