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Replenishment Planner

Replenishment planning uses forecasts and safety stock to determine when and how much to order, ensuring optimal inventory levels while minimizing costs.

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Planner (Forecasting + Replenishment)

Start here:
  1. Planning Recommendations - Review system-generated replenishment recommendations
  2. Forecast Integration - Understand how forecasts drive replenishment
  3. Safety Stock - Configure and monitor safety stock levels
  4. Replenishment Execution - Execute replenishment recommendations
Daily workflow:
  • Review replenishment recommendations
  • Verify forecast alignment
  • Check safety stock levels
  • Execute replenishment orders
  • Monitor replenishment performance

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Operations (Warehouse/Inventory)

Start here:
  1. Replenishment Status - Monitor replenishment order status
  2. Receiving - Receive replenishment shipments
  3. Inventory Levels - Verify inventory after replenishment
Daily workflow:
  • Monitor replenishment order status
  • Receive replenishment shipments
  • Verify inventory levels
  • Report replenishment issues

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Finance (COGS, Holding Cost, Cost-to-Serve)

Start here:
  1. Replenishment Costs - Analyze replenishment order costs
  2. Holding Costs - Monitor inventory holding costs
  3. Replenishment Efficiency - Review replenishment efficiency metrics
Daily workflow:
  • Review replenishment order costs
  • Monitor holding costs
  • Analyze replenishment efficiency
  • Generate cost reports

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How Replenishment Planning Works

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Forecast-Driven Replenishment

Replenishment recommendations are based on:
  1. Forecasted Demand: Expected demand from published forecasts
  2. Current Inventory: Current on-hand inventory levels
  3. Safety Stock: Safety stock levels configured in policies
  4. Lead Time: Expected supplier lead time
  5. Reorder Point: When to trigger replenishment

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Replenishment Calculation

Recommended Order Quantity = 
  Forecasted Demand (over lead time) 
  + Safety Stock 
  - Current Inventory 
  - On-Order Quantity

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Safety Stock

Safety stock protects against:
  • Demand Variability: Unexpected demand spikes
  • Supply Variability: Supplier delays
  • Forecast Errors: Forecast inaccuracy
Safety Stock Calculation:
  • Based on demand variability
  • Based on lead time variability
  • Based on service level targets
  • Configurable per product/channel

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Step-by-Step: Using Replenishment Planning

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1. Review Planning Recommendations

  1. Navigate to Plan → Planning Recommendations
  2. View recommendations by:
    • Product: Recommendations per product
    • Location: Recommendations per location
    • Channel: Recommendations per channel
    • Priority: High, medium, low priority

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2. Understand Recommendation Details

For each recommendation, review:
  • Forecast: Forecasted demand over lead time
  • Current Inventory: Current on-hand quantity
  • Safety Stock: Configured safety stock level
  • On-Order: Quantity already on order
  • Recommended Quantity: Recommended order quantity
  • Reorder Point: When to trigger order
  • Lead Time: Expected supplier lead time

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3. Verify Forecast Alignment

Verify recommendation aligns with forecasts:
  • Check forecast scenario used
  • Review forecast accuracy
  • Verify events are applied
  • Confirm forecast is published

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4. Check Safety Stock Levels

Review safety stock configuration:
  • Verify safety stock levels are appropriate
  • Check safety stock calculations
  • Review service level targets
  • Adjust if needed

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5. Execute Replenishment

  1. Select recommendations to execute
  2. Review details
  3. Click Execute or Create Purchase Order
  4. System will:
    • Create purchase order (if applicable)
    • Update on-order quantities
    • Update planning status

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6. Monitor Replenishment

Track replenishment:
  • Monitor purchase order status
  • Track receiving status
  • Verify inventory updates
  • Review replenishment performance

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Understanding Safety Stock

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Safety Stock Configuration

Safety stock can be configured:
  • Per Product: Product-specific safety stock
  • Per Channel: Channel-specific safety stock
  • Per Location: Location-specific safety stock
  • Global: Organization-wide defaults

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Safety Stock Calculation Methods

Fixed Safety Stock:
  • Manual configuration
  • Simple and predictable
  • May not account for variability
Statistical Safety Stock:
  • Based on demand variability
  • Based on lead time variability
  • Based on service level targets
  • More accurate but complex

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Service Level Targets

Service level targets define:
  • Target Fill Rate: Percentage of demand fulfilled
  • Target Stockout Probability: Maximum stockout probability
  • Target Service Level: Overall service level target
Impact on Safety Stock:
  • Higher service level = higher safety stock
  • Lower service level = lower safety stock
  • Balance service level with holding costs

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Forecast Integration

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Using Forecasts for Replenishment

Forecasts drive replenishment in several ways:
  1. Forecasted Demand: Expected demand over lead time
  2. Forecast Accuracy: Confidence in forecast affects safety stock
  3. Forecast Events: Events affect demand expectations
  4. Forecast Trends: Trends inform replenishment timing

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Forecast Scenarios

Different forecast scenarios can be used:
  • Base Scenario: Standard forecast
  • Promotion Scenario: Forecast with promotions
  • Seasonal Scenario: Forecast with seasonality
  • What-If Scenarios: Explore different assumptions

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Forecast Accuracy Impact

Forecast accuracy affects replenishment:
  • High Accuracy: Lower safety stock needed
  • Low Accuracy: Higher safety stock needed
  • Bias: Adjusts replenishment quantities
  • Trends: Informs replenishment timing

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What Success Looks Like

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Planner Success

  • ✅ Replenishment recommendations align with forecasts
  • ✅ Safety stock levels appropriate
  • ✅ Replenishment orders executed promptly
  • ✅ Stockouts prevented
  • ✅ Holding costs optimized

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Operations Success

  • ✅ Replenishment orders received on time
  • ✅ Inventory levels maintained
  • ✅ No stockouts from replenishment delays
  • ✅ Replenishment process efficient

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Finance Success

  • ✅ Replenishment costs tracked
  • ✅ Holding costs optimized
  • ✅ Service levels maintained cost-effectively
  • ✅ Replenishment efficiency measured

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Common Pitfalls

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1. Not Using Forecasts

Problem: Replenishing based on current inventory without considering forecasts. Solution: Always use forecasts for replenishment:
  • Review forecasted demand
  • Consider forecast accuracy
  • Apply forecast events
  • Use published forecasts
How to avoid: Make forecast review part of replenishment workflow.

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2. Ignoring Safety Stock

Problem: Not configuring or monitoring safety stock levels. Solution: Properly configure safety stock:
  • Set appropriate safety stock levels
  • Consider demand variability
  • Account for lead time variability
  • Review and adjust regularly
How to avoid: Make safety stock configuration part of setup.

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3. Not Considering Lead Time

Problem: Replenishing without considering supplier lead time. Solution: Always consider lead time:
  • Use accurate lead time estimates
  • Account for lead time variability
  • Plan for lead time in calculations
  • Monitor lead time performance
How to avoid: Include lead time in replenishment calculations.

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4. Not Monitoring Replenishment Performance

Problem: Executing replenishment but not tracking performance. Solution: Monitor replenishment performance:
  • Track order fulfillment rates
  • Monitor stockout prevention
  • Review holding cost impact
  • Measure service level achievement
How to avoid: Set up replenishment performance monitoring.

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Troubleshooting

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Replenishment Recommendations Not Showing

Symptoms: Expected replenishment recommendations don’t appear. Possible causes:
  1. Forecasts not generated or published
  2. Safety stock not configured
  3. Replenishment policies not configured
  4. Inventory above reorder point
  5. On-order quantity sufficient
Steps to resolve:
  1. Verify forecasts are generated and published
  2. Check safety stock configuration
  3. Review replenishment policy configuration
  4. Verify inventory levels vs reorder points
  5. Check on-order quantities

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Replenishment Quantities Too High/Low

Symptoms: Recommended replenishment quantities seem incorrect. Possible causes:
  1. Forecast inaccuracy
  2. Safety stock misconfigured
  3. Lead time incorrect
  4. On-order quantity not accounted for
Steps to resolve:
  1. Review forecast accuracy
  2. Check safety stock configuration
  3. Verify lead time estimates
  4. Check on-order quantities
  5. Adjust replenishment parameters

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Safety Stock Not Working

Symptoms: Safety stock configured but not being used in recommendations. Possible causes:
  1. Safety stock not properly configured
  2. Replenishment policies not using safety stock
  3. Safety stock calculation issue
  4. Configuration not saved
Steps to resolve:
  1. Verify safety stock configuration
  2. Check replenishment policy settings
  3. Review safety stock calculations
  4. Verify configuration is saved
  5. Test with sample products

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Replenishment Orders Not Creating

Symptoms: Recommendations approved but purchase orders not created. Possible causes:
  1. Execution process failed
  2. Purchase order creation issue
  3. Supplier not configured
  4. Permissions issue
Steps to resolve:
  1. Check execution status
  2. Review error messages
  3. Verify supplier configuration
  4. Check user permissions
  5. Retry execution
  6. Contact support if issue persists

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Permissions & Roles

Viewing replenishment recommendations requires standard user permissions. Executing replenishment requires inventory management or purchasing permissions. Configuring safety stock requires tenant admin permissions. Contact your organization administrator for details.