Applying Replenishment Methods

Objective

After completing this lesson, you will be able to apply replenishment methods.

Replenishment

Many warehouses use a dedicated warehouse area as a primary picking area. This can be configured as a storage type with fixed bin strategy, but most replenishment techniques also work for storage types with other strategy settings.

Products stored in the picking area reduce over time and need to be replenished. Factors that influence the replenishment quantity include predefined stock levels and demand forecasts, for example.

The image explains key warehouse tasks: putaway after receiving goods, replenishment to restock picking areas, and picking to fulfill outbound orders.

Replenishment Techniques

SAP EWM provides predefined techniques for the replenishment of storage bins. You can use any or all of these techniques in the warehouse to replenish storage bins. Before the replenishment control is used, certain data fields in the warehouse product must be updated (depending on the replenishment technique). The data fields are as follows:

Minimum Quantity
Maximum Quantity
Minimum Replenishment Quantity (optional)

The replenishment control fields can be specified at the storage type level in the warehouse product master or at the storage bin level. The data for the replenishment control fields can be entered manually or they can be determined using the slotting process.

After the replenishment control data has been entered or determined, replenishment processing can begin. The replenishment technique is assigned to a storage type in Customizing. Some of the replenishment control types require additional settings in Customizing.

Planned Replenishment

You can start planned replenishment interactively or start it in the background.

The system calculates replenishment in accordance with the defined minimum quantity and maximum quantity. Replenishment control is triggered when the stock is less than the minimum quantity.

The system rounds down the replenishment quantity (the quantity of the warehouse task or warehouse request), to a multiple of the minimum replenishment quantity.

Planned replenishment ensures inventory is refilled only when stock drops below the minimum, restoring up to the maximum level using calculated order quantities.

Automatic Replenishment

The system starts automatic replenishment in the background when a warehouse task is confirmed.

The system calculates replenishment in accordance with the maximum and minimum quantity. Replenishment control is triggered when the stock is less than the minimum quantity.

The system rounds down the replenishment quantity to a multiple of the minimum replenishment quantity.

Diagram explaining automatic stock replenishment: When stock drops below minimum, replenishment is triggered to refill up to the maximum, rounded down to minimum multiples.

Order-Related Replenishment

You can start order-related replenishment interactively or start it in the background. The goal in order-related replenishment is to ensure that the selected outbound delivery orders can be fulfilled.

The system calculates the replenishment quantity in accordance with the quantity required on open warehouse requests. Replenishment control is triggered when the stock is less than the required quantity.

The system rounds up the replenishment quantity to a multiple of the minimum replenishment quantity. The maximum quantity can be exceeded with replenishment.

Order-related replenishment starts when stock is low, calculates needed quantity, may exceed max levels, and rounds orders up to minimum multiples; supports online or batch processing.

Direct Replenishment

Direct replenishment is started during a bin denial, that is, when an exception code refers to the internal process code, "Replenishment".

Direct replenishment is only possible in fixed storage bin scenarios. The system calculates the replenishment in accordance with the maximum and minimum quantity. It assumes that the quantity at the storage bin is zero.

The system rounds down the replenishment quantity to a multiple of the minimum replenishment quantity.

Direct replenishment can be performed by the warehouse picker (picker-directed replenishment). In that case, a warehouse task for the replenishment displays as the next item to be processed in the picker's warehouse order. As a prerequisite, the system must have found stock in the permitted storage types. Picker-directed replenishment is only possible in radio frequency scenarios.

Direct replenishment is triggered by pick denial due to low stock, prompting the picker to refill fixed bins based on minimum and maximum quantities in the system.

Next lesson