Replenishment is a procedure for the demand-oriented merchandise supply of recipients (stores or external customers). When executing replenishment, the requirements are determined using the stock situation and then follow-on documents (purchase requisitions, purchase orders, sales orders, or outbound deliveries) are generated automatically for the merchandise supply. Store replenishment in SAP Retail is executed using the Rapid Replenishment function.
Replenishment for customers is executed within the framework of Vendor Managed Inventory (VMI), to carry out the requirements planning as a service. In that case, the retailer must have access to the customer's stock and sales data. Customer replenishment in SAP Retail is executed using the Customer Replenishment (VMI) function.
For store replenishment, you should use the detailed inventory management in Materials Management (MM), where each goods movement is recorded in an article document. This requires stocks to be managed on article basis. In this scenario, the full replenishment functionality is available - for example, both static (for instance, manual) and dynamic target stock determination (forecast using requirements planning function) can be used. This is referred to as the standard procedure.
If (parts of) a store's stocks are managed on merchandise-category basis (value-only inventory management), meaning the MM-Inventory Management stock quantity of the article itself always remains at zero, you can use Replenishment-Based Inventory Management as a basis for replenishment planning.
This is referred to as the simplified procedure. It has been designed for a simplified system environment, and is based solely on the sales quantities recorded at POS and can therefore be used without involving additional goods movements. The POS sales quantities reduce the Replenishment-Based Inventory Management, and to increase the same, you can activate corrections using document quantities in the replenishment article master data (Correct RS indicator). These are considered as expected goods receipts. It makes sense to set this indicator if the only information you have as the basis for replenishment is store sales information. Manual corrections to the Replenishment-Based Inventory Management can be made using the replenishment parameter overview. Forecast is not supported, that is, only static target stock determination is used.
For customer replenishment (VMI scenario), only the simplified procedure is available, as the full MM inventory management option is only available for sites, not for customer master records. The replenishment parameter settings for customers are defined in the Logistics: Store view of the article master.
The master data needed for the replenishment run is maintained in the logistics store view of the article master, and is displayed in the replenishment parameter overview.
Enter a replenishment requirements planning type (such as RP or RF). The replenishment requirements planning procedure was developed specifically for replenishment planning purposes in the store and for external customers. You can use the replenishment functions to create follow-on documents (purchase requisitions, purchase orders, sales orders and deliveries) automatically. RP is used with static (manual) target stock maintenance (standard and simplified procedure); RF requires a forecast run (standard procedure only), which calculates a dynamic target stock depending on the target range of coverage.
To maintain replenishment master data (target stock, reorder point, safety stock, minimum target stock, maximum target stock, and forecast parameters) more easily for a large number of articles and stores, you can use requirement groups in the SAP Retail application. The values for the requirement groups (for example, you defined a group each for large, medium, small demand) are maintained article-specific, and the relevant requirement group can then be assigned at store / merchandise category level. Example: Several stores have requirements group "small demand" assigned for merchandise category dairy. For a bottle of milk, "small demand" may mean 50 EA target stock, for flavored yoghurt it may mean 20 EA target stock. Both articles belong to merchandise category dairy.
The target stock for an article in a store (or for a customer), which is used as a basis for calculating the replenishment requirement, can be maintained in two ways:
A static target stock level for stores can be used for articles with a delivery time within the same or next day (to avoid out-of-stock situations). If the delivery time is beyond one day, typically the dynamic target stock determination through forecast is used.
Static target stock determination means, that an empirical value is maintained manually as the target stock in the logistics store view in the article master for the article and the store or customer in question. The static target stock requirements planning type for replenishment is RP. The replenishment procedure can be combined with time-phased planning: in case of time-phased replenishment planning (requirements planning type RS), the planning (and delivery) cycle is additionally considered. It is important to remember the following: static target stock determination can be used for both the standard procedure for stores, and for the simplified procedure for stores and customers.
With dynamic target stock determination (requirements planning type RF)sales forecast (using the MRP forecast function) has to be executed prior to the replenishment run. For the dynamic target stock calculation, the target range of coverage — in a number of days — has to be specified in the article master (logistics store view). The safety stock data defined for the relevant article and store is added to the total consumption based on customizing settings for the requirements planning type. Optionally, the calculated dynamic target stock can be increased or decreased by the system using a minimum and maximum target stock figure which can be defined manually.
With time-phased replenishment planning with a dynamic target stock (requirements planning type RR), the planning (and delivery) cycle is additionally considered for replenishment.