Understanding Inventory Replenishment Processing

Replenishment processing enables you to maintain the inventory stocking levels, also known as on-hand quantity balances. Use one of two replenishment methods:

• Ad hoc replenishment.

  Create replenishment requests in response to specific demands for stock that you cannot fulfill. You can automate ad hoc replenishment by selecting the Create Ad Hoc Requisitions option for all items in a business unit on the Setup Fulfillment page or for a specific item on the Setup Item Fulfillment page or the Define Business Unit Item-Inventory: Replenishment page. When this option is active, the Reserve Materials process (IN_FUL_RSV), Shortage Workbench, and Shipping/Issues component create ad hoc replenishment requests whenever insufficient available on-hand quantity results in the creation of a backorder. Ad hoc replenishment requests are created only for the first backorder line generated. Ad hoc replenishment cannot be used for work orders from PeopleSoft Maintenance Management.

• Reorder point replenishment.

  Specify stocking levels for each item in a business unit and then generate replenishment requests when the available on-hand quantity is less than or equal to the reorder point specified. You can have the Calculate Replenishment Parameters process (IN_RPL_PRM) calculate reorder points for each business unit-item combination or enter these values manually on the Setup Item Replenishment page. The Create Replenishment Requests process (IN_REPLEN_AE) compares the available on-hand quantity (plus any on-order quantity) with the replenishment point set for each item and generates a replenishment request for any item with quantity equal to or below the reorder point.

PeopleSoft Inventory records both ad hoc and reorder point replenishment requests in the replenishment request table (REPLEN_RQST_INV). If the installation includes PeopleSoft Purchasing, the Requisition Loader process (PO_REQLOAD) moves the requests into the purchasing tables. You can view, cancel, or print these requests from the Manage Replenishment Requests page.

If you use fixed picking locations, you can also take advantage of these options:

• Fixed bin replenishment.

  Fixed bin replenishment, which works in conjunction with ad hoc or reorder point replenishment, generates an internal request to restock the fixed picking locations from the main warehouse or stockroom, using the optimal quantities defined on the Fixed Picking Locations page. When the on-hand quantities in these storage locations fall below the optimal quantity, the Create Replenishment Requests process (IN_REPLEN_AE) generates a restocking request. You can print a list of restocking requests using the Fixed Bin Replenishment Report page. You can also use the Fixed Bin Replenishment workflow to streamline transfers when you run the Replenishment multiprocess job (REPLN_AE).

• Fixed Pick workflow.

  If you select the Use Fixed Pick Workflow option on the Setup Item Fulfillment page or the Setup Fulfillment-Order Release page, the Picking Plan report initiates the Fixed Pick workflow whenever there is insufficient quantity available in the sequence of fixed picking locations to fulfill an order. This occurs when there is no quantity available to allocate or, in environments that allow shipment of partial quantities, when the full quantity is not available and there is sufficient quantity outside of the fixed picking locations to fulfill the order. If the quantity does not exist in the business unit, the picking plan prints an error message.

  The Fixed Pick workflow creates a worklist entry to notify you that you must transfer stock to the fixed picking locations before picking can continue. When you open the worklist entry, the workflow transfers you to the EZ Transfers page, where you can select storage locations from which to transfer stock. The worklist entry recommends transferring enough stock to fill the highest priority fixed picking location to its optimal quantity; however, it also displays the order line quantity that triggers the workflow and indicates whether any partial quantity has been allocated to the order line, so you have the option to transfer only the minimum quantity required to fulfill the order.