Understanding Generating Replenishment Orders

When you do consigned inventory or VMI business with your customers, you are also responsible for maintaining the desired inventory levels at your customer's location. The JD Edwards EnterpriseOne Outbound Inventory Management system enables you to maintain target inventory levels at your customer's location by triggering replenishment orders automatically when you report consumption. When you report outbound inventory consumption, the system enables you to create replenishment orders to maintain desirable outbound inventory levels at your customer's location.

You can use the processing options for the Report Outbound Inventory Consumption application (P42I03) to automatically trigger replenishment orders when you report consumption for consumed inventory. You can generate replenishment orders using either one-to-one or reorder point methods as defined in your outbound inventory agreement setup. You can set up the replenishment methods using the Outbound Inventory Agreement Detail application (P42I011).

See Defining Outbound Inventory Items and Quantities

When you set up your replenishment method as one-to-one, the system generates replenishment orders for the quantity for which the customer reports consumption. When you set up the replenishment method as reorder point, the system generates replenishment order only when the quantity available for consumption at the customer's location has reached the reorder point defined in the outbound inventory agreement.

When you set up replenishment frequency for the agreement, you can generate replenishment orders based on pre-configured dates and schedules.