To prevent stockouts, you can track item's reorder level. When stock level goes below reorder level, purchase manager is notified and instructed to initiate purchase process for the item.
In ERPNext, you can update item's Reorder Level and Reorder Qty in the Item master. If same item has different reorder level, you can also update warehouse-wise reorder level and reorder qty.
With reorder level, you can also define what should be the next action. Either new purchase or transfer from another warehouse. Based on setting in Item master, purpose will be updated in the Material Request as well.
If auto creation of Material Request is failed, User with Purchase Manager role will be informed about error message. One of the most encountered error message is:
One of the reason of error could be Fiscal Year as well. Click [here](/docs/user/manual/en/accounts/articles/fiscal-year-error.html) to learn more about it.