Defining Replenishment Options
To define stock-in probabilities, use the Stock-in Probabilities (STOCKOUT_PROB) component. To establish replenishment options, use the Setup Replenishment (REPLN_SETUP) component. To establish replenishment attributes for items in a particular business unit, use the Setup Item Replenishment (REPLEN_ATTRIBUTE) component.
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Page Name |
Definition Name |
Usage |
|---|---|---|
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REPLEN_SETUP_INV |
Select replenishment options for a business unit. |
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REPLEN_ATTRIB_INV |
Define and modify replenishment attributes for a business unit-item combination. The Calculate Replenishment Parameters process can calculate some of these attributes, using the item's demand history. The Create Replenishment Requests process then uses the attributes to determine whether the item needs to be replenished and what the requested quantity should be. |
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STOCKOUT_PROB_INV |
Enter additional stock-in probabilities (statistical values used in the calculation of safety stock). |
Use the Setup Replenishment page (REPLEN_SETUP_INV) to select replenishment options for a business unit.
Navigation:
This example illustrates the fields and controls on the Setup Replenishment page. You can find definitions for the fields and controls later on this page.
Replenishment Options
Field or Control |
Description |
|---|---|
Reorder Point Replenishment |
Select to generate replenishment requests when stocking levels for items in the business unit are equal to or below the reorder point quantities calculated by the Calculate Replenishment Parameters process or entered on the Setup Item Replenishment page. |
Fixed Bin Replenishment |
Select to generate internal restocking requests for fixed picking storage locations with quantities below the optimal levels defined on the Fixed Picking Locations page. |
Reorder Point Order Quantities
Indicate how the Create Replenishment Requests process should determine the order quantity for reorder point replenishment requests. The order quantity is the quantity that is requested when the calculated available quantity is equal to or below the item's designated reorder point.
Field or Control |
Description |
|---|---|
EOQ (economic order quantity) |
Select to create replenishment requests using the economic order quantity defined on the Setup Item Replenishment page. |
Min/Max (minimum/maximum) |
Select to calculate the order quantity required to meet the maximum stocking level on the Setup Item Replenishment page. The reorder quantity calculation for the Min/Max field is: (Maximum Quantity − (Quantity Available + On-order Quantity)). |
Static Reorder Qty (static reorder quantity) |
Select to create replenishment requests using the reorder quantity defined on the Setup Item Replenishment page. |
Demand Quantity |
Select to order the demand quantity. Note: To use the demand quantity method, you must select the Include Demand check box on the Setup Item Replenishment page. |
Include Requisition Quantities |
Select to include the quantity that appears on open PeopleSoft Purchasing requisitions in on-order quantity calculations. |
Include WIP Quantity (include work-in-process quantity) |
Select to add the quantity in WIP storage locations to the quantity available when determining whether an item has reached its reorder point. |
Reorder Point Range Checking
Field or Control |
Description |
|---|---|
Reorder Point Range Checking |
Enables you to minimize ordering costs and increase the order size from a single supplier. When an item requires replenishment, the Create Replenishment Requests process evaluates the stock levels of other items supplied by the same primary supplier. It then creates a replenishment request for each item with current available and on-order balances within the defined Range Checking Percentage. You must establish item-supplier relationships in the appropriate PeopleSoft Purchasing tables before you can use this option. |
Range Checking Percentage |
Multiplier used to set the reorder point tolerance value. For example, a value of 20 percent sets the tolerance value, so that the reorder point is multiplied by a factor of 1.20. |
EOQ Parameters
Field or Control |
Description |
|---|---|
Avg Order Prep Cost (Base Cur) (average order preparation cost in the base currency) |
The inventory business unit's overhead cost per order, in the business unit's base currency. |
Carry Rate |
The interest rate used to calculate inventory storage costs. |
General Parameters
Field or Control |
Description |
|---|---|
Desired Stock-In Probability |
The percentage of the time that you want to have stock on hand for an item. The system uses this percentage when calculating safety stock for the Calculate Replenishment Parameters process. |
Replenish Calc Period (Days) (replenishment calculation period in days) |
The number of days to use in calculating the item's average replenishment lead time. This value becomes the default on the Setup Item Replenishment page and can also be selected on the Stock-In Probabilities page to calculate the Z value for the additional stock-in probabilities calculation. |
Replenishment Request Cancel Method
Indicate whether the system should delete manually canceled replenishment requests or retain them with a status of Cancel. If PeopleSoft Purchasing is not installed, the system deletes the requests.
Use the Setup Item Replenishment page (REPLEN_ATTRIB_INV) to define and modify replenishment attributes for a business unit-item combination.
The Calculate Replenishment Parameters process can calculate some of these attributes, using the item's demand history. The Create Replenishment Requests process then uses the attributes to determine whether the item needs to be replenished and what the requested quantity should be.
Navigation:
See Define Business Unit Item - Inventory: Replenishment Page.
Use the Stock-In Probabilities page (STOCKOUT_PROB_INV) to enter additional stock-in probabilities (statistical values used in the calculation of safety stock).
Navigation:
Use these values in the Desired Stock-In Probability fields on the Setup Item Replenishment page and the Setup Replenishment page.
Field or Control |
Description |
|---|---|
Desired Stock-In Probability |
The percentage of the time that you want to have stock on hand for an item. |
Z Value |
A statistical value derived from the standard normal distribution curve that reflects the standard deviation from the mean. Use a standard normal distribution chart for the Z values to calculate additional stock-in probability values. |