Replenishment Register

Purchase Order Processing - Replenishment Register

Function

Use this task to create a register designed to help the purchasing department buy more efficiently, improve margins, decrease paper, and reduce inventory levels. For more detailed information on the Replenishment Register refer to Appendix A - Replenishment.

=> To access this task...

Select Replenishment Register from the Purchase Order Processing main menu.

Replenishment Register

About the Fields

Recommended purchase quantities are based on minimum purchase amount, maximum stocking levels, line point, EOQ, average usage, and safety stock. According to the parameters established in the Replenishment Selection task, the system analyzes current inventory data and user-defined buying parameters (who is authorized to buy each inventory item, from what vendor the item should be purchased, and how often purchasing reviews should be made). Use these fields to determine what part of that information to be displayed.

Print Warehouse Detail checkbox...

Mark the box to view usage and quantity detail by warehouse for each listed item.
Unmark the box to print information summarized for each item.

Print Suggested Items Only checkbox...

Mark the box to print only suggested buy quantity items.
Unmark the box to print all analyzed items.

When finished making entries to the fields...

Click to run the Replenishment Register process
Click to clear the selections and begin again.

Sample Replenishment Register

See Output Options.

Replenishment Analysis Definitions

The following definitions explains how AddonSoftware determines replenishment selection.

Reorder Point

Average use during lead time (calculated) plus safety stock (from Inventory Item Maintenance.

Line Point

Reorder point plus average use during review cycle time (calculated).

Current Quantity

Quantity available (from Inventory Item Maintenance) plus quantity on order (from open purchase orders and open work orders).

Maximum Quantity

Maximum desired quantity on hand (user-defined in Inventory Item Maintenance).

Suggested Order

Maximum quantity minus quantity on hand minus quantity on order, rounded up to nearest EOQ.

if maximum quantity = 0, suggested order = EOQ
if maximum quantity = 0 and EOQ = 0, suggested order = Line Point
if maximum quantity = 0 and EOQ = 0 and line point = 0, suggested order = Reorder Point

Replenishment Review Considerations

Items belonging to a selected vendor/buyer code combination appear on the Replenishment Report if the current quantity of any item in the selected vendor/buyer code is less than or equal to the reorder point.

If target amounts are set for a vendor/buyer code combination and the targets are fulfilled by suggested orders for items whose current quantity is less than or equal to the reorder point, only those items appear on the report with a suggested order amount.

If target amounts are set for a vendor/buyer code combination and the targets are not fulfilled by the items described above, items whose current quantity is less than or equal to the line point also appear on the report with a suggested order amount.

If no target amounts are set for a vendor/buyer, and Review Cycle Days = 0 for the vendor/buyer, only items with a current quantity of less than or equal to the reorder point appear on the report with a suggested order.

If no items belonging to a vendor/buyer code were suggested for replenishment, the Next Review Date for that vendor/buyer does not change.

Replenishment Adjustment Codes

One or more adjustment codes may appear in the first field of a Suggested Order line. These codes are used to alert the buyer to any unusual inventory situation and to explain the calculation of the suggested order amount.

'**' Indicates Warehouses are Combined
'O' Indicates On Hand Greater than Maximum
'U' Indicates Unusual Monthly Usage
'M' Suggested Buy Based on Maximum
'E' Suggested Buy Rounded to EOQ Amount
'L' Suggested Buy Based on Line Point
'R' Suggested Buy Based on Reorder Point
'Y' Suggested Buy Limited to One Year's Usage
'2' Suggested Buy Increased 1/2 Month's Usage

Selection Criteria

Lists the Selection Criteria for the particular register. If you make several selections via the Replenishment Selection Options task you'll see several lines of criteria listed - one row per selection made. (Note: the Seq column is an ID for each selection made.)

Updating

After closing the preview window, the system issues the following update request:

Click [Yes] to update the cycle dates. The Next Review Date becomes the terminal date plus the Review Cycle Days entered in the Replenishment Parameters option of the Accounts Payable Vendor Maintenance task.
Click [No] to ignore and return to the Purchase Order Processing Menu without updating the review cycle dates.

If [Yes] is selected at the previous prompt the system issues another:

Enter [Yes] to create purchase requisitions for “suggested buy” items.
Click [No] to update the review date without creating requisitions.

If [Yes] is selected at the previous prompt the system issues another:

Update processes completed

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