Replenishment Planning

Replenishment Planning is a critical solution that helps organizations determine the right balance between customer service levels and inventory. It enables businesses to respond quickly to changing customer needs, whether in manufacturing, distribution, or purchasing.

In the retail context, replenishment planning is crucial for optimizing business performance by aligning the supply chain with the overall business strategy. It involves predicting future needs and ensuring a balance between supply and demand through effective communication between the warehouse, head office, and stores.

Replenishment is vital for ensuring that products are available when customers need them. It helps businesses maintain a competitive edge and meet customer expectations. Proper replenishment ensures that the right products are in stock at right time and at the right place, leading to better customer satisfaction and efficient supply chain operations.

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Replenishment Planning

Planvisage Replenishment Planner provides tools to calculate and manage inventory for all points in complex distribution network

Powerful engine that allows to calculate order frequency, order quantities and supply paths based on lead time, calendars, sourcing rules and other variables
Manage inventory shortages using balanced allocation logic, which ensures stock locations share any projected service issues.
Color-coded alerts for service violation, such as a stock out. Tools to analyze and provide best resolution.
Establish order parameters such as Minimum Order Quantity and Lead Time for each product in each location
Reduce or build inventory and vary customer service levels throughout the year with Time-phased Safety Stock
Supports Distribution Planning, Kits, Bill of Material and Bill of Distribution with Unlimited number of Levels
Numerous Replenishment Rules like Lot-for-Lot, Minimum Order Quantity, Order Multiples, Period Order Quantity, Product Rank
Automatic calculation of Safety Stock and Safety Time based on Demand Variability, Supply Variability and Customer Service Level
Generation of orders based on Minimum and Maximum Cover

Replenishment Order Generation

For an effective supply chain replenishment operation, Planvisage has the capability to suggest action plans. Some of the action messages include –

Expedite Firm Planned Orders
De-expedite Firm Planned Orders
Cancel Firm Planned Orders
Expedite Purchase Orders
De-expedite Purchase Orders
Cancel Purchase Orders
Expedite Production Orders
De-expedite Production Orders
Cancel Production Orders
Expedite In Transit Orders
De-expedite In Transit Orders
Cancel In Transit Orders
Release Planned Order
Negative projected Inventory
Projected Inventory below Safety Stock

Action Message

Deployment determines which distribution demands of DC’s can be covered by the present supply. Deployment run creates deployment stock transfers.

For a particular item at location, the tool will calculate the quantity available for deployment based on the demand and receipts available for that location and the rules for Push/Pull and Fair Share

The Fair Share rules are applied when Supply < Demand. Available rules are:

Fair Share A: % division by demand
Fair Share B: % division by target stock
Fair Share C: % division by quota arrangement
Fair Share D: % division by priority

Push Rules are applied if Supply > Demand. Available rules are:

Pull Rule: Only demand within the pull deployment horizon is met through deployment
Pull Push: All supply is distributed immediately to meet demand within pull horizon
Push Rule: All supply is distributed immediately meet demand in the system

Revised Planned Orders are generated based on the stock availability in the upstream location.