In the replenishment rules for a warehouse item, you can set a replenishment point. For example, if you have a warehouse item called Battery AA, you might set the replenishment point to 50. APM tracks the number of AA batteries in the warehouse and the demand for the batteries. When the “available balance” of Battery AA falls to 50 or lower, a replenishment purchase order or transfer request is placed. This occurs when a user selects to replenish either a warehouse or a warehouse item.
You can think of the replenishment point as the “safety stock” quantity, plus the quantity required to satisfy expected demand during the replenishment lead time. If the warehouse item can be reserved, the system uses the reserved demand quantity instead of calculating the lead time demand. If the warehouse item cannot be reserved, then you can estimate the lead time demand using the following formula:
Lead Time Demand = Average Monthly Demand x (Time To Process Order + Time To Procure Item + Time To Put Away Item) / 30
You can set a warehouse to either use the time to procure set on each warehouse item or to use the time set on the supplier resources.
When the “available quantity” is less than the replenishment point, the replenishment quantity is calculated based on the Replenishment Quantity Type. See the help text’s “Adding an Item to a Warehouse” section
Replenishment Quantity Type
This box shows how you want to replenish the stock: with a Fixed Quantity or to a Maximum Level.
Fixed Quantity: The replenishment demand will always request the same number of items or multiples of the number if required to push the available balance above the replenishment point.
Maximum Level: The replenishment demand will calculate how many items to order to reach the maximum stock level.