Auto-replenish in the event of a low stock level
Auto-replenish ensures that items are retrieved from a media hotel if the stock of the item groupings gets too low.
The function’s method of operation
The function runs once a day - at night. The function generates replenishment orders for the mobile client so that items can be located in a media hotel to be shelved at another branch.
Each run follows this procedure:
- All existing (non-processed) replenishment orders are deleted and the assignment status of the associated items is reset.
- A list of the item groupings that have auto-replenish activated is generated. Auto-replenish can be activated for a specific item grouping, but it only has an effect if auto-replenish has been enabled for the branch, the branch is not closed and is otherwise included in IMMS, and the item grouping is not closed.
- This procedure is run for each of the relevant item groupings:
- Stock % is calculated for the item grouping. Items assigned (en route) to the item grouping are counted as in stock.
If the item grouping uses separate fixed/float, then the stock % is calculated for fixed and floating items, respectively, individually and the two parts are then considered on an individual basis.
- The item grouping’s meter - min % and meter - max % are queried. If the values are not directly listed for the item grouping, then the “Default meter-min” and "Default meter-max” parameters set at either the branch or system level are used.
- The item grouping’s Auto-replenish target percentage is queried. If the value is not directly listed for the item grouping, then the “Target for the automatic replenishment” parameter set at either the branch or system level is used.
- The item grouping’s reorder point (ROP) is calculated based on the meter - min % and meter - max % as well as the limit value. The limit value (0 - 100) indicates where the reorder point lies in the range between the meter - min % and meter - max %. A limit value of 0 corresponds to meter - min % and a limit value of 100 corresponds to meter - max %.
- If the item grouping (or fixed/float part if applicable) has a low stock level (i.e., the stock is below the reorder point), an appropriate number of items are selected so that the stock reaches the reorder point. (See the following section on the selection of items).
- Replenishment orders are generated and the items are marked as being assigned to the item grouping.
The reorder point for an item grouping is the point that auto-replenish will attempt to fill the item grouping up to. The replenishment begins once the stock is below the reorder point. In other words, the stock does not need to fall below one point and subsequently be filled up to another point. Only the reorder point is needed.
Which items can be used for replenishment?
Since after picking, the intelligent distribution algorithm attempts to assign the item to be shelved at a branch (and in an item grouping) with a low stock level, a number of conditions must be in place in order for an item to be a candidate for replenishment:
- The item must be placed in the selected item grouping at the branch (a match)
- In the case of an item grouping split into fixed/float, fixed and float must match
- The item must not (via it's strategy) indicate that it should have a fixed placement in a media hotel
- The item must not have reached copy min at the branch
- The item must currently be located in a storage location within a media hotel
- The item must not currently be a part of a pick order
- The item must not currently be singled out for replenishment by another branch
Which items are selected for replenishment?
In addition to the conditions of the previous section being met, the following prioritization is used:
- An item that has a fixed relationship to the branch and is located in a different media hotel than the branch’s preferred media hotel
- An item that has a fixed relationship to the branch and is located in the branch’s preferred media hotel
- Floating items are retrieved from media hotels in a prioritized order (the same order of priority that is used for assignment - controlled by the Priority of media hotel parameter). Items are retrieved first from the media hotel with the highest priority.
- Depending on the “Automatic replenishment always takes the newst item first” parameter, newer items may be prioritized ahead of older items.
If the priority level is the same, items are randomly selected.