| # To use replenishment matrices Replenishment matrices are used to automatically control the quantity of items on pick locations. Based on a replenishment matrix, you can automatically generate, and also directly process, warehouse orders to replenish pick locations. Replenishment matrices are defined by linking pick locations to bulk locations. Prerequisites To be able to setup a replenishment matrix, you must: Create a location controlled warehouse. For more information, refer to Using warehouses. In the Warehouses (whwmd2500m000) session, you can indicate whether a warehouse is location controlled. Optionally create zones. For more information, refer to Using zones. Create locations. For more information, refer to Using locations. Create a location-controlled item. For more information, refer to Setting up the item data. In the Items - Warehousing (whwmd4500m000) session, you can indicate whether an item is location controlled. Specify and activate warehouse-related item data in the Warehouse - Item (whwmd2510m000) session. Specify a fixed pick location for the item in the Fixed Locations (whwmd3502m000) session, because you can only replenish fixed pick locations. To be able to replenish a fixed pick location, you must also specify the Minimum Inventory and Minimum Replenishment Quantity in the Fixed Locations (whwmd3502m000) session. Setup Use the Replenishment Location Matrix (whwmd3504m000) session to define the replenishment matrix. You can specify the following replenishment relation types: A replenishment location that replenishes a destination location. A replenishment location that replenishes a destination zone. A replenishment zone that replenishes a destination location. A replenishment zone that replenishes a destination zone. The following restrictions apply to the zones and locations you can use to define a replenishment matrix: A replenishment location must be of the Bulk type. A replenishment zone must at least contain one location of the Bulk type. A destination location must be of the Pick type. A destination zone must at least contain one location of the Pick type. You can specify specific and general replenishment relations. A replenishment relation is: Specific if the item is specified. General if no item is specified. You can specify more than one replenishment relation for one specific destination location or destination zone. As a result, the destination location or destination zone can be replenished from several replenishment locations or replenishment zones. In this case, LN determines the sequence of location(s) from which replenishment must take place, based on the Priority that is specified for each replenishment relation in the Replenishment Location Matrix (whwmd3504m000) session. Replenishment Use the Print Replenishment List (whwmd3405m000) session to start the replenishment of pick locations. With this session, you can: Only print the replenishment list if the Directly Create Warehousing Orders check box is cleared. On the replenishment list, you can view the replenishment advice that consist of the locations to be replenished, the locations to replenish from, the item to be replenished, and the replenishment quantity. Print the replenishment list, and also directly generate warehouse orders of the Transfer (Manual) origin, that enable the actual replenishment. To do so, select the Directly Create Warehousing Orders check box, and specify the Warehousing Order Type and Warehousing Order Series. Print the replenishment list, directly create warehouse orders, and also directly process the created warehouse orders to start the actual replenishment directly. To do so, select the Directly Process Created Orders check box. If, in the Print Replenishment List (whwmd3405m000) session's selection range, you specify: A destination zone to be replenished, LN checks all the zone's pick locations that are fixed for a certain item on whether these locations must be replenished. A destination location to be replenished, and the location is a pick location that is fixed for a certain item, LN checks whether this location must be replenished. An item to be replenished, LN checks for all fixed pick locations for this item whether these locations must be replenished. A fixed pick location must be replenished if a shortage exists for the item. A shortage exists if the item's total Inventory on Hand in that location is less than the Minimum Inventory. You can view: The total item's Inventory on Hand at the bottom of the Stock Point Inventory (whinr1540m000) session. The Minimum Inventory in the Fixed Locations (whwmd3502m000) session. LN calculates the items shortage at the fixed pick location as follows:
     shortage = minimum inventory - inventory on hand (nnventory unit)
Note If the Use Economic Stock for Replenishment Advice check box on the Print Replenishment List (whwmd3405m000) session is selected, LN uses the economic stock, instead of the Inventory on Hand, to determine the quantity to replenish. Based on the calculated shortage, LN determines the quantity to replenish, taking into account: The Minimum Replenishment Quantity that is specified in the Fixed Locations (whwmd3502m000) session. LN cannot replenish less than the Minimum Replenishment Quantity. The location's capacity that is specified in the Warehouse - Location - Capacity (whwmd3101s000) session. LN cannot replenish more than what fits on the location. If the quantity to be replenished to a pick location is determined, LN starts searching for a bulk location to replenish from. To determine the bulk location(s) from which the pick location must be replenished: LN first searches for Specific replenishment relations for the pick location and item. If such a replenishment relation exists and inventory is available for the item on the bulk location that is specified for the replenishment relation, LN creates a replenishment advice to replenish from that bulk location. If for the pick location and item a Specific replenishment relation exists but not enough inventory is available on the bulk location, or if no Specific replenishment relation exists for the pick location and item, LN searches for a General replenishment relation for the pick location. If such a replenishment relation exists, and inventory is available for the item on the bulk location that is specified for the replenishment relation, LN creates a replenishment advice to replenish from that bulk location. If a replenishment relation exists but not enough inventory is available to replenish, or if no replenishment relation exists, and the Also Create Orders for Undefined Replenishment Location check box in the Print Replenishment List (whwmd3405m000) session is selected, LN creates a replenishment advice without the location to replenish from for, respectively, the remaining quantity or the replenishment quantity. Important! If more than one Specific replenishment relation exist, or if more than one General replenishment relation exist, LN takes into account the replenishment relations' priorities to determine the replenishment sequence of the bulk locations. If two replenishment relations exist with the same priority, LN determines the replenishment sequence of the bulk locations, based on the item's Outbound Method that is specified in the Item - Warehousing (whwmd4100s000) session. Example Warehouse WH1 has, among other locations: A pick location: Pick1. Four bulk locations: Bulk1, Bulk2, Bulk3, and Bulk4. Item ABC is location controlled and the item's outbound method is FIFO. Location Pick1 is the fixed pick location for item ABC, for which the following settings apply: Minimum Inventory = 50. Minimum Replenishment Quantity = 25. The following active replenishment relations exist for warehouse WH1 and location Pick1:
Priority | Replenishment Location | Item
--- | --- | ---
3 | Bulk1 | ABC
1 | Bulk2 | ABC
3 | Bulk3 | ABC
2 | Bulk4 |
The following stock point inventory is available for item ABC:
Location | Inventory Date | Inventory on Hand
--- | --- | ---
Pick1 | 01-08-2002 | 30
Bulk1 | 01-15-2002 | 7
Bulk2 | 01-18-2002 | 10
Bulk3 | 01-25-2002 | 5
Bulk4 | 01-22-2002 | 5
A replenishment list is printed with the Print Replenishment List (whwmd3405m000) session with the following settings: Warehouse: WH1. Destination location: Pick1 Replenishment Relation Type: Both. Use Economic Stock for Replenishment Advice check box is cleared. LN calculates the item ABC's shortage at location Pick1 as follows:
     shortage = minimum inventory - inventory on hand (inventory unit) = 50 - 30 = 20.
Because the shortage (20) is less than the Minimum Replenishment Quantity (25), the quantity to be replenished is 25. As a result, the printed replenishment list contains the following replenishment advice (note the sequence):
Advised Quantity | Replenishment Location
--- | ---
10 | Bulk2
7 | Bulk1
5 | Bulk3
3 | Bulk4
LN advises first ten ABC from Bulk2, because Bulk2 has the highest priority (1). Then, LN advises seven ABC from Bulk1, because LN first searches for Specific replenishment relations. As a result, LN first advises ABC from Bulk1 and Bulk3, and not from Bulk4, although Bulk4 has a higher priority. However Bulk1 and Bulk3 have the same priority, LN first advises ABC from Bulk1 compared to Bulk3, because Bulk1's stockpoint inventory date is before that of Bulk3. |