About configuration of automated replenishment

Before you start to configure automated replenishment in your system, thoroughly consider the warehouse functions in your system, including which warehouses will serve as replenishment sources for other warehouses and which will be replenished by direct purchasing or manufacturing.

To reduce time that would be spent typing replenishment settings for each item in each warehouse, you can configure default replenishment settings at multiple levels.

In general, you perform the following steps to configure automated replenishment:

1. Create appropriate replenishment classes.
2. Assign each warehouse to a replenishment class.
3. For each item class, specify replenishment settings for all replenishment classes, including the applicable seasonality settings.
4. For each stock item, review the replenishment settings that are default values from the item class, and make any needed adjustments.
5. For each stock item at each specific warehouse, review the replenishment settings that are default values from the item. Adjust these settings for each warehouse if needed.

The sections below provide information that will help you execute these steps.

Replenishment classes group warehouses by the replenishment sources used in your company, that is, how stock is replenished at the warehouse.

You create replenishment classes by using the Replenishment classes (IN208800) window and you assign a replenishment class to every warehouse.

For each class, specify its

• name,

• description, and

• replenishment source.

Replenishment source

As the replenishment source, you can select one of the following options:

Source	Description
None	No replenishment is required. This could be used, for example, for a warehouse that is closing its operations.
Purchase	The items for stock replenishment will be purchased from suppliers.
Manufacturing	The items for stock replenishment will be manufactured.
Transfer	The items will be transferred from a replenishment warehouse.
Purchase to order	The items for stock replenishment will be purchased only when customer orders have been received for them and in the quantities requested by the orders.

Virtual warehouse

For items that are usually sold by using drop ship orders and do not require replenishment, you can create a virtual warehouse and assign the replenishment class with the Drop shipment option as the replenishment source.

To make it easier to provide replenishment settings for each item that is specific to each warehouse where the item is stocked, you can set up default values at multiple levels. The sections below explain how to do this.

Fist level: Item-class replenishment settings

Specify replenishment settings to be used as default settings for items of the class, by using the the Replenishment settings tab on the Item classes (IN201000) window.

Items at separate warehouses

If you know that items of the class are stocked at multiple warehouses with different replenishment sources, configure how the items are typically replenished for each replenishment class.

Specify the following information for each item class:

• The method of demand calculation

• The seasonality

• The replenishment method

• The demand forecast model and parameters for the model (the period type, number of periods to analyse, and service level).

• The launch and termination dates of the period when the settings are effective for the class.

The method of demand calculation

When specifying the method of demand calculation for each item class, you can select one of the options described below.

IF	THEN
you select the Hard demand only option,	the demand will be calculated as Allocated sales order qty. + Sales order qty. on shipments + Qty. on sales back orders.
you select the Item class settings,	the demand will be calculated in accordance with the availability settings specified for this item. This setting is defined on the General information tab of the Item classes (IN201000) window.

Second level: Item replenishment settings

On the Replenishment settings tab of the Stock items (IN202500) window, you can view the replenishment settings of a particular item, which by default are provided by the item class. For the item, you can review replenishment settings for different replenishment classes that might be used if the item is stocked at multiple warehouses, and override the settings if needed.

The many replenishment settings for all items at all warehouses are filled in with default values.

In the Item warehouse details (IN204500) window (Replenishment info tab), you can review the replenishment parameters to be used for the particular item at the selected warehouse. These settings come from the item settings but can be overridden for a particular warehouse.

With Visma.net ERP, you can configure replenishment for a number of warehouses that is performed by transfers from one large warehouse, a distribution centre, for which centralised purchasing is performed, and perform it efficiently.

For items in the smaller warehouses that should be replenished by transfers from the distribution centre, specify Transfer as a replenishment source, while for the same items stocked in the distribution centre select Purchase as a replenishment source.

The table below describes the replenishment process for multiple warehouses.

Stage	Description
1	The user prepares replenishment for small warehouses by using the Prepare replenishment (IN508000) window.
2	The system generates transfer orders requesting replenishment. creates demand for replenishment in the distribution centre.
2	The system creates a single purchase order for all the requested quantities of each item no matter which the demand warehouses are.
3	The user creates a receipt for the merchandise from a supplier for this purchase order and releases it. If the item is replenished by using the Purchase to order source, for each warehouse where the item is stocked, the user can specify the same replenishment warehouse.
4	The system automatically generates transfer orders to split the received quantity between demand warehouses according to the quantities on original sales orders.