Article

Article Body

Overview

The DRP Location Replenishment Maintenance module is the primary record used to assign planning parameters and resupply methods that are used in the DRP Replenishment routine. Resupply of the Inventory Location can be achieved by either Purchase Transactions or via Planned Location Transfers (Project to Project/Site to Site/Location to Location).

Application

The DRP Location Replenishment Maintenance records allow users to define desired replenishment quantities for an Item and which sourcing methods are used when balances drop below designated levels (Purchase or Planned Transfer).

Replenishment records can be created with the following levels of specificity:

Division, Inventory Item, Site, Project, Location ID, Location Number

The rules governing how the DRP engine calculates replenishment quantities are also defined on each Replenishment record. Parameters that can be specified are:

Minimum Stocking Quantity: the threshold quantity that triggers a replenishment.
Desired On Hand Balance: when inventory levels drop below the Minimum Stocking Quantity, this is the inventory level that the replenishment will bring the specified location up to.
Replenishment Multiplier: the quantity increments for which replenishments will be planned - could also be considered lot size.
Transfer Net of Supplies and Demands: no consideration is given to the Desired On Hand Balance. Supplies, demands, and On Hand balances are netted, producing the replenishment quantity.

Prerequisites

DRP enabled within the environment (refer to Rootstock Support if not enabled)
Division Master Setup (Advanced Options Tab): DRP Time Fence (Days) - only applicable if using the Transfer Net of Supplies & Demands replenishment method
Site Master Setup: DRP Time Fence (Days) - only applicable if using the Transfer Net of Supplies & Demands replenishment method
Inventory Location ID Setup: Inventory Location ID's must be flagged as Do Not Zero-Qty Delete Location for all Locations that will be used in Replenishment Location Maintenance records.

User-added image NOTE For Planned Transfers (as opposed to the Create Requisition feature), the To inventory location must exist. Normally zero-quantity Locations (ICLOCITEM) are automatically deleted from the system when Inventory levels drop to zero. Setting the Do Not Zero-Qty Delete Location for all Locations that will be used will ensure the Planned Transfer does not error.

Terminology

DRP: Distribution Requirements Planning

Planned Location Transfer: A DRP generated or manual entry Planned Location Transfer record that facilitates the transfer of Inventory from one Location to another.

Purchase Requisition: A DRP generated Inventory Requisition that can be converted into a Supplier Purchase Order.

Navigation

DRP Location Replenishment Maintenance

Processing

Planned Location Transfers

Click on New to create a new record
Populate all fields for the Item that is being replenished (see Fields section below for an explanation of field contents/functionality)
Set replenishment parameters accordingly (Minimum Stocking Quantity/Desired Inventory On Hand/Replenish Multiplier/Transfer Net of Supplies & Demands)
Populate the Transfer From fields (this determines where the Inventory will be sourced for the transfer)
Populate the Ship To Address section
Do Not check Create Purchase Requisition
Save the record

When DRP Processing is run, these records create Planned Location Transfers that can be managed via the Planned Location Transfer Query module.

Purchase Requisitions

Click on New to create a new record
Populate all fields for the Item that is being replenished (see Fields section below for explanation of field contents/functionality)
Set replenishment parameters accordingly (Minimum Stocking Quantity/Desired Inventory On Hand/Replenish Multiplier/Transfer Net of Supplies & Demands)
Do Not populate the Transfer From fields (only required for Planned Location Transfers)
Check Create Purchase Requisition

When DRP Processing is run, these records will create Inventory Requisitions that can be managed via the Inventory Requisition Workbench.

User-added image EXAMPLE

Item ABC for Inventory Location OH/BIN-9 has a Minimum Stocking Quantity of 100, a Desired Inventory On Hand of 150, and a Replenish Multiplier of 10.
The Inventory Location drops to 95, triggering a Replenishment.
To bring the inventory level up to 150 (the Desired Inventory On Hand), 55 would be needed. However, because the Replenishment Multiplier is set to 10, a quantity of 60 will be planned as the Replenishment quantity.

Fields

Division:  The Division for which this record applies.

Item Number: The Item number for which this replenishment applies.

Project Number:  The Project Number for which the given Item replenishment applies. If Project Control is not active, this is the Home Project for the given Division.

Inventory Site:  This is the Inventory Site that will be replenished.

Location ID: The Location ID (within the Division and Site) that will be replenished. It must be a valid Location for the Site defined.

Location Number:  The Location Number within the Div, Site & Loc ID that will be replenished. If using pre-defined Location Numbers, there must be a valid Location Number for the specified Loc ID. If pre-defined Location Numbers are not used, they can be any value up to 10 characters.

Transfer To Location ID:  The Location ID of the Inventory Location that the replenishment quantity will be transferred to. It may be used to populate the field DRP Receipt Location ID on generated Inventory Requisition as result of the DRP processing when field Initialize Location on DRP Inventory Reqs is checked on Division Master > Advanced Options tab. By default this field will be populated from the 'Location ID', but the user can override the default value.

Transfer to Location Number:  The Location Number of the Inventory Location that the replenishment quantity will be transferred to. If using pre-defined Location Numbers, must be valid Location Number for the specified Location ID. If pre-defined Location Numbers are not used, can be any value up to 10 characters. May be used to populate field DRP Receipt Location Number on generated Inventory Requisition as result of the DRP processing when field Initialize Location on DRP Inventory Reqs is checked on Division Master > Advanced Options tab. By default this field will be populated from the 'Location Number', but the user can override the default value.

Minimum Stocking Quantity:  This defines the minimum inventory quantity that should be maintained in the specified Location. When the inventory quantity goes below the Minimum Stocking Quantity, it triggers a replenishment Planned Transfer Request or Purchase requisition to level up the inventory.

Desired Inventory On Hand:  This defines the ideal quantity that should be maintained in the specified Location. The value in this field defines the level of the inventory to be increased after the inventory quantity goes below the Minimum stocking quantity.

Replenish Multiplier:  When inventory levels drop below the Minimum Stocking Quantity and a quantity is calculated to replenish the given location, the transfer or purchase quantities recommended will be in increments of this value.

User-added image   EXAMPLE

Item ABC for Inventory Location OH/BIN-9 has a Minimum Stocking Quantity of 10 and the demand for the item used is 10.
If the Transfer Net of Supplies & Demands is checked, the Desired Inventory On Hand field value defaults to zero.
When the quantity on hand drops to 5, a Replenishment quantity of 10 will be planned in order to meet the demand.

Transfer Net of Supplies & Demands: If checked to true, the demands, supplies & OH inventory will be netted & the recommended quantity to transfer or purchase will be based on that net calculation logic. Demands and supplies are based on the Division and Site specified, & the OH inventory of the Location specified.

User-added image EXAMPLE

Item ABC for Inventory Location OH/BIN-9 has a Minimum Stocking Quantity of 10.
The Transfer Net of Supplies & Demands is checked and set the Desired Inventory On Hand field value to 20.
If the quantity on hand drops to 5, then a quantity of 15 will be planned as the Replenishment quantity in order to bring the inventory level up, to equal the Desired On Hand.

Transfer From Project:  When using transfers (not Create Requisitions), this is the Project that will be used on a transfer request from which the inventory will be transferred.

Transfer From Site:  When using transfers (not Create Requisitions), this is the Site that will be used on a transfer request from which the inventory will be transferred.

Transfer From Location ID:  When using transfers (not Create Requisitions), this is the Location ID that will be used on a transfer request from which the inventory will be transferred.

Transfer From Location Number:  When using transfers (not Create Requisitions), this is the Location Number that will be used on a transfer request from which the inventory will be transferred.

Although not required, it is essential when using Planned Transfer Requests.
If using pre-defined Location Numbers, must be valid Location Number for the specified Location ID.
If pre-defined Location Numbers are not used, can be any value up to 10 characters.

Ship-To Name, Address Line 1, Address Line 2, Address Line 3, City, State, Country, Postal Code:  Used on Planned Transfer picklists and packing slips.

Create Purchase Requisition:  When checked, rather than planning a transfer from another Location, a Purchase Requisition is generated.

Transfer Request Delay Days:  This value offsets the Requested Processing Date on the Planned Transfer generated when inventory drops below the Minimum Stocking Quantity.

Title	DRP Location Replenishment Maintenance

URL Name	DRP-Location-Replenishment-Maintenance