Inventory Rebalancing Options for Replenishment Plans

Use the Inventory Rebalancing tab on the Plan Options page to specify the clusters, inventory rebalancing rules, and supply and demand types for calculating excess inventory and inventory shortages for your replenishment plan.

Select the Rebalance inventory check box on the Plan Options page to enable the Inventory Rebalancing tab.

Note: The Rebalance inventory check box is grayed out if you select the Enable for incremental planning check box. The Rebalance inventory check box is also grayed out if you select the Enable for policy comparison check box in the Scope: Advanced Options dialog box that you can open from the Scope tab on the Plan Options page.

Clusters

You can add, sequence, and remove the clusters that must be included in your replenishment plan for inventory rebalancing.

The available clusters are those that you have created on the Manage Planning Clusters page in the Replenishment Planning work area.

Inventory rebalancing is performed for each included cluster according to its sequence number. The items in each location are processed so long as the item-location combinations are also in the selected segments of the segment group that's attached to the replenishment plan.

Note these points while adding or removing clusters:

• Every cluster must have a unique sequence number.

• The sequence number for a cluster must be a whole number that's one or greater than one.

Inventory Rebalancing Rules

Note these points about the inventory rebalancing rules for your replenishment plan:

• Reduce partial recommendations: Select this check box if you want the inventory rebalancing functionality to try to meet inventory shortages at locations using planned orders from other locations that have enough excess inventory to completely meet the shortfall. By selecting this check box, you can reduce the number of planned orders generated through inventory rebalancing.

• Move excess to sweep location: Select this check box to move the excess inventory after inventory rebalancing in a cluster to a designated sweep location that may or may not be within the cluster.

• Include safety stock in shortage calculation: Select this check box to include the safety stock for an item-location combination in the calculation of its inventory shortage.

Supplies and Demands for Calculation of Excess Inventory and Inventory Shortages

You must specify the supply and demand types for inclusion in the calculation of the excess inventory and inventory shortage for an item-location combination.

The selected supply and demand types are used in the calculation of the Projected Inventory measure for the item-location combination.

You must select at least one supply type and one demand type for inventory rebalancing.