About automated replenishment

In the Prepare replenishment (IN508000) window, you can view the list of items that require replenishment.
To more effectively process the requests, you can select a warehouse and a planned purchase date, and view the list of applicable items requiring replenishment in this warehouse at a specified date. You can further narrow the list by a specific supplier, or you can view only the items assigned to you as a product manager or to your work group.

You can select particular items and process them by clicking Process, or you can process all the listed items by clicking Process all in the window toolbar of the Prepare replenishment (IN508000) window.

To create the list of items that require replenishment, the system uses the settings specified on the Replenishment info tab of the Item warehouse details (IN204500) window for each item at each warehouse where the item can be stocked.

An item is listed in the Prepare replenishment (IN508000) window if the following general conditions are fulfilled:

• The processing date you have selected is within the time interval when the replenishment settings are effective (defined by Launch date and Termination date).
• The quantity on hand is below the reorder point for this item at this warehouse.
• The item has one of the following sources:
  • Purchase
    The item stock should be replenished through a purchase. The system will generate a replenishment request for purchasing.
    By default, the preferred supplier specified on the Supplier details tab of the Stock items (IN202500) window will be used on the order, but you can select another supplier.
  • Manufacturing
    The item should be manufactured in the required quantities to replenish the stock.
  • Transfer
    The quantity required for item replenishment should be transferred from a replenishment warehouse.
    The system will generate a replenishment request for transfer.

If an item should be replenished by using the Fixed replenishment method, the system will generate a replenishment request for the transfer economic recommended quantity (transfer ERQ) (if the replenishment source is Transfer) or for economic order quantity (EOQ) specified for the selected supplier on the Supplier details tab of the Stock items (IN202500) window (if the source is Purchase).

If the item should be replenished by using the Min./max.replenishment method, the system will generate a replenishment request for the target quantity, which is calculated as follows:

The replenishment quantities on the list appear adjusted for low seasons defined by your system's set of seasonality settings. By using seasonality settings, you can adjust the quantities for replenishment that are initiated during low seasons, each of which is defined by its starting and ending date. For a purchase date within a low season, the replenishment quantity is calculated with a decreasing factor, which is a factor that appropriately decreases replenishment quantities.

Processing the items listed in the Prepare replenishment (IN508000) window, prompts the system to create appropriate replenishment requests, which are internal Visma.net ERP documents used as the basis for creating purchase and transfer orders. Replenishment requests have reference numbers, which are determined by the numbering sequence specified in the Inventory preferences (IN101000) window.

The system handles replenishment requests differently based on the item replenishment source:

• Purchase
  Replenishment requests for items with this replenishment source appear in the Create purchase orders (PO505000) window, which you can use to create one order for all items to be purchased from a specific supplier. The system will perform any needed conversions to purchase units.

  If the Min./max.method has been chosen for the item, the system computes the replenishment quantity as the difference between the maximum quantity and the reorder point, minus the quantity on supply (the quantity of items on unreleased purchase orders, purchase receipts, and quantities in transit), and plus the quantity on demand (on customer released and unreleased orders). If the Fixed order quantity method has been selected, the system uses the EOQ values specified for the chosen supplier.

• Transfer Create transfer orders (SO509000) window. You create transfer orders to move the products from the replenishment warehouse to the warehouse whew the item is needs replenishment.
  
  This column is only displayed if the Multiple warehouses functionality in the Enable/disable functionalities (CS100000) window is enabled.

The quantities specified on the purchase order may differ from those specified on the replenishment requests.
The final replenishment quantity for an item on a purchase order is calculated based on the settings provided for the supplier that will fulfill replenishment, and the following changes may occur:

• If the quantity required by replenishment settings is less than the minimum order quantity, the system uses the minimum order quantity.
• If the quantity required by replenishment settings exceeds the maximum order quantity, the system uses the maximum order quantity.
  (The maximum order quantity is not used in the current version.)
• If the requested quantity is not divisible by the lot size, the result is rounded up to the next integer, and that number of lots is ordered.
• If the order frequency is specified, the system estimates the time interval between the previous purchase order and the planned purchase date of the current replenishment.