Business Central reordering policy: which to use

In Business Central, most items should use Lot-for-Lot, which Microsoft recommends when you aren't sure and says suits about 80 percent of items. Use Fixed Reorder Qty. or Maximum Qty. for cheap, steady, fast-moving items with a reorder point, and Order for expensive, irregular, drop-ship or special-order items.

This guide follows Microsoft Learn documentation for Dynamics 365 Business Central online as published on 2026-10-01. Older and on-premises versions can differ, and partners often customize item pages.

What does the Reordering Policy field actually decide?

The Reordering Policy field on the item card (or stockkeeping unit card) decides whether Business Central plans the item at all, and how big each suggested order is. If the field is blank, the item is left out of planning and has to be ordered by hand, for example from the Order Planning page.

There are four policies. Two of them, Fixed Reorder Qty. and Maximum Qty., are inventory policies: they keep stock above a reorder point. The other two, Order and Lot-for-Lot, react to demand: sales orders, forecasts, blanket orders and component needs. That split matters more than any single field, because it decides which other planning fields Business Central even looks at.

How does each reordering policy calculate the order quantity?

Each policy answers "how much" differently. The verdict: pick the policy by how the item sells and what it costs to hold, then fill in only the fields that policy uses.

Policy	Order quantity	Fields it uses	Typical item
Fixed Reorder Qty.	At least the Reorder Quantity each time projected inventory reaches the reorder point	Reorder Point, Reorder Quantity, Safety Stock Quantity, Time Bucket, order modifiers	Low-value, high-volume C items
Maximum Qty.	The gap between projected inventory and Maximum Inventory, so it changes each time	Reorder Point, Maximum Inventory, Safety Stock Quantity, order modifiers	C items with high carrying cost or limited shelf space
Order	Exactly what each demand needs, linked one to one	No planning parameters are considered	A items, make-to-order, drop shipments, special orders
Lot-for-Lot	The total demand due in the period, optionally grouped	Lot Accumulation Period, Rescheduling Period, Dampener Period, Safety Stock Quantity, Include Inventory, order modifiers	B items and anything you are unsure about

Order modifiers are applied in this sequence: Business Central caps the quantity at the Maximum Order Quantity, raises it to the Minimum Order Quantity, then rounds up to the Order Multiple. Emergency lines that cover negative projected inventory ignore all three and order the exact shortage.

When should you use Lot-for-Lot?

Use Lot-for-Lot when you are not sure. Microsoft's own best-practice page recommends it for B items, for components used in several bills of materials, and as the policy to pick when undecided, and says roughly 80 percent of items can use it, even with no other planning parameters filled in.

Lot-for-Lot only orders against actual or expected demand, including forecasts and blanket orders. The Lot Accumulation Period groups demand into one order: from the first demand date, everything due within that period lands on a single purchase. A long period gives fewer, bigger orders and more stock; a short one gives many small orders and less stock. Microsoft also recommends always selecting Include Inventory with this policy, so stock on hand is counted before anything new is suggested.

Because the system bundles demand per period, Lot-for-Lot also tends to combine purchases from the same vendor, which helps when you negotiate on volume.

When should you use Fixed Reorder Qty. or Maximum Qty.?

Use a reorder-point policy for cheap items that sell steadily and that you never want to run out of. Fixed Reorder Qty. orders the same amount every time; Maximum Qty. tops stock back up to a ceiling, so the amount varies.

Both policies watch projected inventory. When it reaches the reorder point, Business Central suggests a forward-scheduled order. Before it does, it checks whether supply already on order will arrive within the item's lead time; if that supply brings inventory back to the reorder point, no new order is suggested. Microsoft's example sets the reorder point at 100 when average demand is 100 units over a seven-day lead time.

Three Microsoft warnings apply to both:

Don't add a forecast. The reorder point already represents expected demand. If you want to plan from a forecast, use Lot-for-Lot instead.
Set Reserve to Never. Reserving stock for a distant order can leave inventory that looks fine against the reorder point but isn't actually available.
Leave Time Bucket blank unless you deliberately want a periodic check. A one-week bucket means stock can sit below the reorder point for up to a week before an order is suggested. Microsoft specifically advises against a time bucket with Maximum Qty.

Pick Maximum Qty. over Fixed Reorder Qty. when storage space or carrying cost caps how much you can hold, and pair it with an order modifier such as an Order Multiple that matches the vendor's case pack. Business Central also warns you with an overflow message when incoming supply would push stock above Maximum Inventory, and suggests cutting or cancelling the order.

The step-by-step setup of these fields is in our guide to setting reorder points in Business Central.

When should you use the Order policy?

Use Order for high-value items where holding stock is unacceptable, demand is infrequent, or each order needs different attributes. Microsoft lists A items, make-to-order items, drop shipments and special orders.

Order creates an order-to-order link between the demand and its supply, so a purchase made for one sales order is never used for another. No planning parameters are considered, so safety stock and reorder points are ignored. Microsoft advises against this policy if you don't accept automatic reservation, and suggests Lot-for-Lot instead when the item's attributes don't vary.

How do you use ABC classification to pick a policy?

Microsoft suggests grouping items by value and volume, then matching policy to group. A items are roughly 10-20 percent of stock volume but 50-70 percent of value; C items are 60-70 percent of volume but only 10-30 percent of value.

Export item sales value and quantity for the last twelve months, for example with Edit in Excel or an inventory report.
Rank items by sales value and mark the top slice as A, the middle as B and the long tail as C.
Set A items to Order (or Lot-for-Lot if they sell regularly), B items to Lot-for-Lot, and C items to Fixed Reorder Qty. or Maximum Qty. with a reorder point.
Run Calculate Plan in the requisition worksheet on a filtered set and check the suggestions before you change every item.

Re-rank at least once a year. A C item that becomes a top seller under a fixed reorder quantity is a common source of stockouts.

Where does ReorderOwl fit with reordering policies?

Reordering policies are rules you maintain by hand, item by item. ReorderOwl works from your sales history instead: it reads sales history, stock on hand, open purchase orders, vendors and lead times from Business Central, forecasts each item, and tells you what to order and how much in ChatGPT, with an Excel workbook that explains every line. It drafts purchase orders that are saved in Business Central only after you confirm, and nothing goes to a vendor until someone on your team sends it.

The Business Central connection is built and tested against Business Central test systems, and we connect it to yours with you during setup. Read more on the ReorderOwl for Business Central page, or see how it compares in Business Central planning vs ReorderOwl.

Frequently asked questions

What happens if the Reordering Policy field is blank?

The item is not included in supply planning, so Calculate Plan never suggests it. You have to order it manually, for example from the Order Planning page.

Which reordering policy should I use if I'm not sure?

Lot-for-Lot. Microsoft recommends it as the default when unsure and says about 80 percent of items can use it, even without other planning parameters.

Can I use a forecast with Fixed Reorder Qty.?

Microsoft advises against it, because the reorder point already represents expected demand during the lead time. Use Lot-for-Lot if you want planning to follow a forecast.

What is the difference between Fixed Reorder Qty. and Maximum Qty.?

Both trigger at the reorder point. Fixed Reorder Qty. orders at least the same Reorder Quantity each time; Maximum Qty. orders whatever brings projected inventory back up to Maximum Inventory, so the amount changes.

Can different locations use different reordering policies?

Yes. Create a stockkeeping unit for the item at each location and set the planning fields there. The same best practices apply to SKU cards as to item cards.

Sources

Setup best practices - Reordering policies, Microsoft Learn, accessed 2026-10-01
Design details - Handling reordering policies, Microsoft Learn, accessed 2026-10-01
Design details - Planning parameters, Microsoft Learn, accessed 2026-10-01
Setup best practices - Planning parameters, Microsoft Learn, accessed 2026-10-01