Inventory replenishment process analyzes supply and demand to help manufacturing and distribution organizations improve order and line item, fill rates and optimize their overall inventory management performance. The inventory replenishment process considers a variety of criteria such as on-hand inventory, customer demand, and supplier lead times to calculate requirements and generate online requisitions, purchase orders, and inventory transfer requests.
Replenishment includes
- MRP AND DRP compare available inventory with current and future demand to predict expected shortages over time.
- For manufacturing organizations, it includes bills of materials, routings, and production capacity to generate a tentative production schedule.
- Supports review of purchase requisitions to generate purchase orders and inventory transfers
- Compares available inventory with current and future demand to predict expected inventory shortages over time
- Replenishment rules include minimum-maximum reorder point, safety stock levels, line item fill rate, and service level
- Supports approved suppliers, contract terms, blanket orders, and contracted purchase amounts
- Accounts for vendor lead times and order requirements
- Demand consists of customer orders and forecast which can reflect seasonal business trends
