Overview
Updates to inventory replenishment parameters are initiated regularly, according to the schedule defined in the enterprise's inventory replenishment policy. Due to this strategy it is not expected to react on one-off requests from the business units, but it requires regular monitoring of the actual stock level, the average consumption, and lead times.
At the beginning of the process, define a list of items in the warehouse for replenishment. Inventory replenishment strategy is usually applied for the procurement of stocked consumables. It is also necessary to regularly monitor situations whether the items are valid for procurement or not. This allows the company to avoid unnecessary purchases.
As part of the process, maintain a complete list of all applicable inventory replenishment strategies, which must be defined by the enterprise's inventory replenishment policy.
The inventory replenishment strategy is set up using available types:
- Мin – max. This type is used for materials for which there are no reliable consumption statistics, or the current statistics can't be used for future consumption forecasting. The minimum and maximum inventory levels are set manually. Minimum inventory – if the stock reached this level in the warehouse, the system will generate a demand for the material. Maximum inventory – the quantity of items in the warehouse immediately after the planned inventory replenishment. Then the system will automatically calculate the buy point, the date for placing a supply order.
- Fixed consumption forecasting. This type is used for materials for which a fixed daily rate of consumption is determined. The system will use such parameters, as: daily consumption, safety stock, the time of delivery, to calculate minimum, maximum stock level and buy point for each item. Safety stock, here, is the quantity of materials in stock below which inventory should never fall. Safety stock is a part of the minimum inventory.
- Rolling consumption forecasting. This type is used for materials, which consumption level on different days is insignificant, and consumption statistics are regular and reliable. The system will use statistics to calculate minimum, maximum stock level and buy point for each item.
As a result of the process, the inventory replenishment parameters are reviewed and updated.
Video guide
Maintain inventory replenishment parameters flowchart
Paths
Path | Warehouse and delivery → Demand fulfillment → Inventory replenishment parameters |
|---|---|
| In-app link EN code |
e1cib/command/DataProcessor.SetUpStockReplenishment.Command.SetUpStockReplenishment
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| In-app link RU code |
e1cib/command/Обработка.НастройкаПоддержанияЗапасов.Команда.НастройкаПоддержанияЗапасов
|
How to maintain items list for replenishment
1. Go to Warehouse and delivery, then click Inventory replenishment parameters under Demand fulfillment.
2. In the Inventory replenishment parameters workplace, select the Warehouse filter, select the Valid parameters view mode.
3. Click Add goods → Pick.
4. In the Items workplace, select the Filter by kinds and attributes check box, select the relevant item kind, select Items.
5. To differentiate inventory level control parameters for the exact item variant, select the item, then click Group → Set individual parameters for variants.
6. In the opened form, select the Item variant.
How to maintain list of inventory replenishment strategies
1. In the Inventory replenishment parameters workplace, select items, then click Group → Create, enter the settings group name.
2. Repeat these steps to create more inventory replenishment strategies.
3. To make changes in the group content, in the Inventory replenishment parameters workplace, select item, then click Group → Move to group, then select the group, or select item, then click Remove from group.
How to set up min-max replenishment
1. In the Inventory replenishment parameters workplace, select the group, click Fill → Inventory replenishment.
2. In the Inventory control settings menu, select the Мin – max, enter the value of Minimum inventory and Maximum inventory parameters manually.
3. Select the Demand calculation option → Supply from stock, or Supply regardless of inventory level control.
Note
You can fill methods and parameters for several items in one run:
1. Go to Warehouse and delivery and then click Inventory replenishment parameters under Demand fulfillment.
2. Select several items, click Fill → Inventory replenishment, and select one of the methods.
3. Select several items, click Fill → Min inventory... (or other), and enter the value for the parameter specific to the selected method.
How to set up fixed consumption forecasting replenishment
1. In the Inventory replenishment parameters workplace, select the group, click Fill → Inventory replenishment.
2. In the Inventory control settings menu, select the Average daily consumption method, enter the value of Consumption rate per day and Safety stock parameters manually.
Note
In case of Average daily consumption and Calculation by statistics method, the system will calculate min and max inventory values using the following formulas:
- Minimum inventory = Consumption rate per day * Number of days until next delivery + Safety stock.
- Maximum inventory = Consumption rate per day * Covered period (number of days from the nearest to the next delivery) + Safety stock.
3. Select the Demand calculation option → Supply from stock, or Supply regardless of inventory level control.
How to set up rolling consumption forecasting replenishment
1. In the Inventory replenishment parameters workplace, select the group, click Fill → Inventory replenishment.
2. In the Inventory control settings menu, select the Calculation by statistic, enter the value of Safety stock parameters manually.
3. Select the Demand calculation option → Supply from stock, or Supply regardless of inventory level control.
4. In the Inventory replenishment parameters workplace, click More actions → Set up consumption statistics calculation.
5. In the Customize settings of average daily consumption calculation form, select the Period and Number of periods.
6. Select the Seasonal fluctuation treatment options, if it is required.
Note
The following options could be selected:
- Do not record. Seasonal fluctuations are ignored.
- By seasonal indexes. The average daily consumption is calculated based on data for the specified period (in the Number of periods field).
- By the same period of last year. The average daily consumption is calculated based on the data for the period (similar to the current month of the last year). The system will adjust the average daily consumption according to the consumption dynamics of the corresponding product category. The system determines the goods consumption dynamics based on the data for the specified period and for the same period last year.