This process is distinct from the Automatic
Transfer process, which generates transfers when the stock
location differs from the ship-from location for a sales order delivery
line item.The Automatic Stock Replenishment for Locations feature generates transfers automatically (on demand or via the EOD/Generate Daily Reports routine) for merchandise from selected "warehouse" locations to selected store or warehouse locations when stock falls below a user-defined level. Automatic Stock Replenishment is a key parameter in the Just-In-Time Inventory feature.
This process is distinct from the Automatic
Transfer process, which generates transfers when the stock
location differs from the ship-from location for a sales order delivery
line item.
The Automatic Stock Replenishment feature performs two basic steps:
Determine which locations require inventory transfers in order to maintain user-defined stock levels, and
Locate and transfer inventory from user-defined warehouse locations to the depleted locations without reducing inventory at the warehouse locations below user-defined stock levels.
The Automatic Stock Replenishment feature references the following fields:
Inventory Control Settings - For Stores: Replenishment Active and For Warehouses: Replenishment Active fields on the Replenishment page. This field activates the Automatic Stock Replenishment feature on your system. Be sure to set up your individual locations for this feature (see below) before you enable this field.
Inventory Control Settings - Available is Less Than Minimum Stock field. This field tells the EOD process which quantity to reference - either the Maximum or the Minimum field in the Warehouse Inventory Settings - when determining whether a store/warehouse location needs inventory replenishment.
Warehouse Inventory Settings - Maximum or Minimum field. If you enter a maximum, minimum, and safety quantity for a selected location, you activate the Automatic Stock Replenishment feature for that location. Note that you must specify these quantities PRIOR to activating Automatic Stock Replenishment, and you must specify BOTH maximum and minimum quantities - regardless of your selection at the Available is Less Than Minimum Stock field.
When determining whether a location needs inventory replenishment, EOD references your selection at the Available is Less Than Minimum Stock field, then references the quantity at that field (that is, the Maximum or Minimum field). For each location, if the quantity available is less than the quantity specified at that field, EOD attempts to transfer merchandise to the location.
Inventory Control Settings - Stock Level field on the Replenishment page. Use this field to specify the quantity indicator you want to use when calculating the quantity available for replenishment at the primary and secondary replenishment locations (see below) for a location. You can specify either the minimum quantity or the safety quantity. See the equation below.
Inventory Control Settings - Primary and Secondary fields on the Replenishment page. For store/warehouse locations, use these fields to indicate the warehouse locations from which to replenish the store/warehouse location. Note that you can set the primary and secondary warehouse locations in several other files (see the list below).
If EOD determines a store/warehouse location requires replenishment, EOD searches the warehouse location specified at the Primary field. If sufficient inventory exists, the system transfers enough merchandise to meet the Maximum quantity specified for the product. If sufficient inventory does not exist at the primary location, the process repeats for the secondary location. If the system cannot find sufficient inventory at either location, no transfer occurs. For each location, the quantity available for replenishment calculates as the following:
Qty On-Hand – QTY reserved - Minimum (or Safety) Stock Qty
In other words, when stock levels of a product fall below the Minimum/Maximum level set in the Warehouse Inventory file, a transfer of the Maximum quantity less the available quantity occurs during the Day-Ending process, provided the transfer does not cause the source warehouse to fall below its designated level. Note that alternatively, you can generate replenishment transfers manually using the Replenish Assigned Stock Levels process.
Only stock or bulk products are eligible for this process (that is, the products cannot be special-ordered, non-inventory, or kit masters.)
Automatic Stock Replenishment excludes products with no warehouse inventory records or activity until warehouse activity occurs for those products (for example, a PO receiving or a sales order), thus eliminating transfers if no demand exists for the product.
The Location Type field in the Warehouse/Store Location Settings indicates the location type (that is, warehouse or store).
You can set the primary and secondary replenishment locations in several files. The system searches for a replenishment warehouse using the following hierarchy, using the first locations it finds:
After the system generates auto stock replenishment transfers, they display on the transfer scheduling and inquiry screens and also appear in the Report Transfers By Location (Open Transfers by Location) report.
Replenishment transfers complete in the same manner as traditional transfers, that is, via pick list, pack list, and transfer completion.
When calculating the date of an auto stock transfer, the system references the Auto Schedule Days field on the Inventory tab in the Point of Sale Control Settings.
After calculating the auto stock transfer date, the system checks the "Automatically Replenish On" days in the Warehouse/Store Location Settings to ensure the date falls on a day of the week selected for auto stock transfer.