About automated replenishment

The following table describes the difference between having single and multiple warehouses.

If	Then
your company has a single warehouse,	it purchases inventory to replenish the stock.
your company has multiple warehouses (and the Multiple warehouses functionality in the Enable/disable functionalities (CS100000) window is enabled),	your company can purchase stock for some warehouses and replenish stock for others by transferring required quantities from these warehouses.

Some products at specific warehouses may be purchased only if there are customer orders requesting the products. In this case the items can be purchased to a wholesale warehouse and transferred to point-of sale warehouses.

By using forecast models, you can fine-tune such parameters as safety stock, reorder point, and maximum quantities based on sales statistics.

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.

Criteria for inclusion on item list

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, Manufacturing or Transfer. For more information, see About configuration of automated replenishment.
  

Generation of replenishment request

The following table describes the conditions that decide when replenishment requests are generated.

IF	AND	THEN
an item should be replenished by using the Fixed replenishment method,	the replenishment source is Transfer,	the system will generate a replenishment request for the transfer economic recommended quantity (transfer ERQ).
an item should be replenished by using the Fixed replenishment method,	the replenishment source is Purchase,	the system will generate a replenishment request for economic order quantity (EOQ) specified for the selected supplier, on the Supplier details tab of the Stock items (IN202500) window.
an 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: Target quantity = Max. quantity - Reorder point - Quantity on supply + Quantity on demand

Low season adjustments

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. The two tables below describe the Purchase and Transfer replacement source respectively.

Purchase replacement source

Stage	Description
1	The replenishment requests appear in the Create purchase orders (PO505000) window.
2	The user: can use the window to create one order for all items to be purchased from a specific supplier.
3	The system: performs any needed conversions to purchase units.

The replenishment quantities on the purchase order will be calculated differently depending on the replenishment method that has been selected for the item in question. The following table explains this.

For the Purchase replacement source:

If	Then
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).
the Fixed order quantity method has been selected,	the system uses the EOQ values specified for the chosen supplier.

Transfer replacement source

The Transfer option is only displayed if the Multiple warehouses functionality is enabled in the Enable/disable functionalities (CS100000) window.

Stage	Description
1	The replenishment requests appear in the Create transfer orders (SO509000).
2	The user: creates transfer orders to move the products from the replenishment warehouse to the warehouse when the item needs replenishment.

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. The table below explains the changes that may occur.

If	Then
the quantity required by replenishment settings is less than the minimum order quantity,	the system uses the minimum order quantity.
the quantity required by replenishment settings exceeds the maximum order quantity,	the system uses the maximum order quantity.
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.
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.