Measures Used for Calculating Replenishment Orders

This topic lists the measures that are used for calculating replenishment orders.

Measure

Description

Beginning Inventory Position

This measure indicates the projected inventory at the beginning of a plan bucket for an item-location combination and drives the creation of replenishment orders.

The calculation of the measure is determined by the selection in the Time Horizon for Demand list on the General subtab of the Supply tab of the Plan Options page for a replenishment plan:

  • If the selection is Item lead time, the measure is calculated as follows: Projected Available Balance + On Order - demand during item lead time.

    The current day's demand is already included in the calculation of the Projected Available Balance measure and is therefore excluded from the calculation of the demand during item lead time.

  • If the selection is None, the measure is calculated as follows: Projected Available Balance + On Order

Final Inventory Position

This measure indicates the projected inventory position at the end of the plan bucket for the item-location combination. This measure includes the replenishment orders that are required to bring the inventory to the maximum quantity or reorder point (ROP).

The measure is calculated as follows: Beginning Inventory Position + Planned Replenishments by Order Date

Planned Replenishments by Order Date

This measure indicates the planned replenishment quantity on the order date for the item-location combination.

Planned Replenishments by Due Date

This measure indicates the planned replenishment quantity on the due date for the item-location combination.

On Order

This measure indicates the quantity of projected replenishments that are to be received for the item-location combination.

For planned replenishment orders, the measure is populated from the day after the order date to the day before the due date. On the day a replenishment order is scheduled to be received (the due date), the Projected Available Balance measure is increased by the order quantity, and the On Order measure is reduced by the order quantity. For the existing buy and transfer orders that are collected, the On Order measure is populated from the order date.