Setting replenishment parameters – A summary of the activity

This activity allows you to compute and set the replenishment parameters for the various parts available in the inventory. You can set the replenishment parameters by computing the “Reorder Qty Parameters” and “Service Level Details” for the part.

The reorder quantity parameter is generally computed for a time period, based on the consumption value of the part in the inventory. Hence, only parts that are classified under “ABC” classification will be considered.

Service level parameter is generally computed based on the relative importance of the part in the inventory. Hence, only parts that are classified under “VED” classification will be considered. The best inventory investment and ease in operation can be achieved with the aid of various part classification methodologies performed through the “Stock Analysis” business component.

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