IN - Dynamic Replenish

Hi again!

In my last blog I've shown you how Static Replenishment process works.

Today, let's talk about calculating the Reorder Quantity in a dynamic way.

As I always do, let's see it with a quick example.

1) First of all we have to create a new Replenishment Class.

2) In order to set a dynamic Replenishment Calculation we must set the Item attributes.
For instance,  let's take the ST8000 item in the US008 business unit.

If we check the inventory status of this item, we'll see there are 1284 units available and 204 units reserved. So, we really have 1080 units available.

3) Let's go to Root > Inventory > Replenish Inventory > Setup Item Replenishment
It is in this step where the set-up information must be different from the Static Replenishment.

We should set some additional values:
Reorder Quantity Option: Min/Max
Replenish Class: DYNA (the one we had created)
Replenish Calc Period: 30 days. (meaning how often we will execute the replenishment process.)
Replenish Lead (Days): 5 days (it could be understood as a deadline)
Reorder Point: 4000.
Safety Stock: 50 (the minimum quantity we want to have in stock)

4) Having this configuration set up let's run the calculation process, chossing BU = US008 and replenish class = DYNA. The request option must be "Maximum Stock Qty" since that's the option we chose in the ST8000 item.

 Root > Inventory > Replenish Inventory > Calc Replenishment Parameters

In this case the "Calc Replenishment Parameters" will work by the following way:

a) Looks for the item Total Demand in the last "Replenish Calc Period" days

b) Calculates the Average Demand -> "Total Demand" / "Replenish Calc Period" days
In this case it will be 4020/30 = 134
c) Calculates the maximum quantity as "Average Daily Demand" *  ("Replenish Calc Period" + "Replenish Lead"  ) + Safety Stock.
So, in this case it will be : 134 * (30 + 5 ) + 50 = 4740.
Let's check it.

When we then run the "Create Replenishment Process" we will take this quantity into consideration.

5) Let's run de Create  Replenishment Process chossing BU = US008 and replenish class = DYNA.

 Root > Inventory > Replenish Inventory > Create Replenishment Request

6) We now go to the "Manage Replenishment Request" page and we could see recently created  Replenishment ID.
As we could see in the following screen the item is shown with 3907 units to be bought.

So, How is this number calculated? Here you have a basic explanation:

a) Searchs how many items were bought. ( 0 in this case)

b) Searchs how many  items were properly moved to inventory ( 0 in this case)

c) Searchs how many items were not  moved to inventory yet ( 0 in this case)

d) Searchs how many items were used to create new productions.
For instance, the ST8000 item is used when producing the PRD00126 item.

In this case we have 247 units that are used when producing

As a summary we early saw there were 1080 units available and we only have 247 in production process.
So, we actually have 833 units available for this item.
We need 4740 as a maximum quantity, so we need to buy 3907 units of this item, which matches the result of the Create Replenishment Process.

Once we have the Replenish ID, the PO process continues as explained in the Static Replenishment..

I hope this blog could be so useful to you as it is to me.

Regards.
Facundo Salerno.

IN - Static Replenish

Hi All,

I'm afraid of boring you with so many technical things, so let's have a functional tutorial today.

Working in BNB I have learnt about Inventory Process.

One of the main process I have seen is the Replenishment Process.

There are different ways of items replenishment. Here you will find a quick explanation about the static one.

1) First of all we have to create a new Replenishment Class.

2) In order to set a static Replenishment we must set the Item attributes.
For instance,  let's take the USA-01 item in the US0003 business unit.

If we check the inventory status of this item, we'll see there are 3000 units available.

Let's go to Root > Inventory > Replenish Inventory > Setup Item Replenishment

We should set some additional values:
Reorder Quantity Option: Static Reorder QTY
Replenish Class: STAT (the one we had created)
Reorder Point: 3001. (meaning when we have less than 3001 units of the item it will be included in the replenishment process)
Reorder Quantity: 4000 (how many units of the item should be ordered). This quantity can't be lower than the Reorder Point.
Why? Think you have 0 items in your inventory and  you set the reorder quantity to 1000.
Once the Replenishment Process is executed, you buy the 1000 units, but this item is still below the reorder point that is 3001. So the system won't let you be at this situation.

3) Now we must set the business unit replenish options: Let's go to  Root > Inventory > Replenish Inventory > Setup Replenishment

4) Having this configuration set up let's run the replenishment process, chossing BU = US003 and replenish class = STAT.

 Root > Inventory > Replenish Inventory > Create Replenishment Request

5) Let's check process status in the Process Monitor Page

6) We now go to the "Manage Replenishment Request" page and we could see recently created  Replenishment ID.
As we could see in the following screen the item is shown with 4000 units to be bought.
If we need to change the quantity we'll be able to do it in this page.

7) We are now able to execute the Requisition Loader, choosing the Replenish ID we have previously created.

8)  If we check the process monitor, we could see the ID of the requisition that was created

9) And, as the final step, we check the requisition was properly created.

I hope this blog could be so useful to you as it is to me.

Regards.
Facundo Salerno.