In a business maintaining inventory of goods , the business
needs to replenish the stock of the sold goods to maintain the required
inventory for normal business operations
The Inventory replenishment is determined by the inventory replenishment
method employed by the business
1.
Min-Max Planning
2.
Kanban Replenishment Planning
3.
Replenishment Palnning
4.
Re-Order Point Planning
The Re-Order of Inventory raises a lot of questions which need
to be answered
1.
What should be ordered
2.
How much should be ordered
3.
When should the goods be ordered
4.
Which planning method to use
How Much to Order : This depends on the relation between the
supply and demand and the inventory replenishment lead time.
Inventory Forecasting: Inventory forecasting is the process
of extrapolating the expected demand of the goods over an expected number of
periods
Inventory Replenishment methods
1.
Min-Max Planning
2.
Kanban Replenishment Planning
3.
Replenishment Planning
4.
Re-Order Point Planning
Re Order Point Planning
As the name suggests this method of replenishment will
replenish the inventory when the inventory level falls below a certain decided
point.
The goods ordered are equal to the EOQ (Economic Order
Quantity)
This mechanism is recommended for the items which are not
very expensive
Re-Order point planning steps
1.
Enter item planning attributes
2.
Forecast item demands
3.
Define safety stock
4.
Run Re-Order point report
Min-Max Planning
The items are planned depending on the user defined Minimum
and Maximum quantity.The items are replenished to the Maximum level once it
falls below the Minimum Level. It is generally applied to low cost items which
do not require strict monitoring
Kanban Planning:
Kanban is a pull replenishment system whose aims is zero
stockouts, shorter lead times, and reduced inventory with minimal manual
supervision. Instead of waiting for an MRP plan to release materials down the
supply chain, with kanban each operation pulls the materials it needs from its
source when it needs them, signaling with a replenishment signal or a kanban that it needs
to do so.
Kanban
The term kanban refers to a visual replenishment
signal such as a card or an empty bin for an item. In a kanban system, each
work center has several bins, each containing a certain number of the same
item. When a bin becomes empty, the work center starts the process of
replenishing the empty bin by sending the replenishment signal, or a kanban.
Meanwhile, the work center can continue using the other (stocked) bins.
Types of Kanban Replenishment:
Inter Org: Replenishes by creating
Internal Requisition
Intra Org: Triggers Material movement
from a subinventory in the same Organization.
Production: Creates or releases a
Production Job
Supplier: Creates a Purchase
Requisition.
Kanban Elements:
Pull Sequence is a group of information that defines a Kanban location,
source information, and planning parameters for an Item.
Kanban
chain is a series of Pull Sequences, which defines the replenishment
network. E.g.: Assembly to Stores.
Kanban Cards are created for Item,
Subinventory and Locator (optional) and uniquely identified by a Kanban number
Replenishable
Cards can be created automatically through Pull Sequence or manually
through „Kanban Cards‟ window.
Replenishment
Counting
• Replenishment Counting is a method of ordering Items for
non-Tracked Subinventory.
•
Non-Tracked subinventories are expense subinventory, for which On-hand balances
are not maintained.
• Whenever
an Item is moved into Expense Subinventory, the Expense account is charged and
the quantity is discarded.
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