Manage Stock Replenishment – A summary of the activity

The “Manage Stock Replenishment” activity aims to simulate and compute replenishment levels for parts in a scientific way based on vital planning parameters. These planning parameters include: Service Level %, Per Order Cost, Carrying Cost in % Std. Cost, Annual Consumption, Std. Dev. Of Consumption, Lead Time (Days), DDLT and Mean Forecast Error Factor. You can then proceed to update part replenishment data in warehouses.

You can simulate/compute replenishment levels including Reorder Qty, Reorder Level, Safety Stock, Min Qty and Max Qty for parts. Simulation /What If analysis of replenishment levels can be done taking into account possible changes in demand and supply circumstances to arrive at the optimum replenishment levels for parts in warehouses. This could reduce stock piles and stock outs warehouses. Alternatively, you may let the system compute the replenishment levels based on the existing planning levels.

You can record, update, view, close or cancel replenishment levels for parts of your choice in this activity.Broadly, this activity primarily facilitates two significant tasks associated with replenishment of parts in warehouses.

• Computation of replenishment levels of parts in warehouses, using the replenishment option “Compute Replenishment”.

• Update of replenishment levels of multiple parts in multiple warehouses, using the replenishment option “Maintain WH Planning Parameter”.

Computation of replenishment levels of parts in warehouses: The replenishment computation happens in two ways: on the basis of either user-specified or existing planning parameter values. In the first case,  the user opts to specify the planning parameters for computation of replenishment while in the later the system generates replenishment using the existing replenishment parameter definition available in Part Administration and Storage Administration. The computed replenishment levels for parts can then be updated to warehouses. Further, these new replenishment levels may also be used to initiate the designated replenishment activities for parts, such as generation of material requests/stock transfers/purchase requests/purchase orders in warehouses.

Update of replenishment levels of multiple parts in multiple warehouses: You can choose to utilize this activity to bulk update replenishment levels of parts in various warehouses across the organization at one go. For example, you may update the replenishment details for the part “A100” that is stocked in all warehouses under a specific storage location by specifying the storage location alone in one-step action.  You may specify the new replenishment levels for parts in a specific warehouse or storage location that must be updated in warehouses.

Lifeline of a replenishment document

Action bar: An intuitive Action bar guides users in replenishment data processing illustrated in the next table. The action that the user must execute on a document is highlighted in the Action bar. For example, if the stock levels have already been computed for the document, the system highlights ‘Update’. For a closed document, the entire Action bar will appear dim, meaning no action is possible now.

Progression of Action bar for replenishment documents with Replenishment Action = “Compute Replenishment”

Progression of Action bar for replenishment documents with Replenishment Action = “Managing Warehouse Parameters”

Getting familiar with the pages

What you can do in this activity

• Compute replenishment levels based on existing planning parameter definition

• Define new values for planning parameters and then compute replenishment levels based on new planning parameter definition

• Set and update new replenishment levels for parts in warehouses

Prerequisites

• Define part main information in the Part Definition business component

• Define warehouse information in Storage Administration