Explaining Replenishment

During replenishment planning, the system observes requirements according to the goods movements that have taken place in the stores affected. Sales are entered in the stores and posted as goods issues using POS inbound processing.

The system determines the replenishment requirement quantity and transfers this to the store order function. Once supply source determination has taken place, the store order function generates a procurement document according to the settings made.

Replenishment is a procedure for the demand-oriented merchandise supply of recipients (plants or external customers). When planning replenishment, the requirements are determined using the stock situation and then follow-on documents (for example, purchase requisitions, purchase orders, sales orders and outbound deliveries) are generated automatically for the merchandise supply.

Replenishment for customers is used within the framework of Vendor Managed Inventory (VMI) to carry out the requirements planning as a service.

The lot size/order quantity in Replenishment is always calculated as the difference between the target stock and current stock for the simplified method and between the target stock and the expected stock for the standard method.

If the current stock is greater than the reorder point, a lot size is not calculated, or, in other words, replenishment is not triggered.

If a reorder point is not maintained for the material, the replenishment quantity is always taken as the difference between the target stock and the current/expected stock.

The transaction WR60 can be used to view the replenishment parameters maintained in the materials.

Replenishment can be run in the system using transaction WRP1R.

The results of the replenishment run are listed in the replenishment monitor; which then creates the follow-on documents. Transaction WRMO can be used to view the Replenishment Monitor.

Once a source of supply has been determined and, if necessary, quantities have been optimized (to determine the actual replenishment quantity from the replenishment requirements), the system generates the preset follow-on document.

The most important procurement documents that you can generate as follow-on documents from the store order function are the standard purchase order and stock

transport order. Which document type is generated depends on the supply source setting in the Material master: External means a standard purchase order, for an internal source of supply key this may be a stock transport Order.