Overview
Dynamic replenishment is designed to optimize inventory management at picking locations. This feature ensures that product levels are maintained between a defined minimum and maximum capacity by considering the product’s demand.
Goal
The primary goal of dynamic replenishment is to ensure efficient inventory management by maintaining adequate stock levels at desired locations. By dynamically adjusting inventory levels based on demand, this feature helps prevent stockouts and overstock situations.
How It Works & How to Setup Dynamic Replenishment
Dynamic replenishment operates by continuously monitoring product levels at target locations and replenishing inventory as needed. The overview of the entire cycle can be seen below, as to explain how dynamic replenishment works.
1- Setting Replenishment Levels on Products:
Define the minimum and maximum replenishment levels for each product.
Minimum Replenishment Level: The minimum stock level that must be maintained.
Maximum Replenishment Level: The upper limit of stock that should not be exceeded.
To learn more about how to create products, please visit this article.
2- Configuring Location Settings
Source locations should have the source option selected in the replenishment location type field.
Target locations must have the replenishment location type set to target.
3- Creating Replenishment Job Types
Establish a dedicated replenishment job type to manage dynamic replenishment tasks.
Replenishment Type field should be selected as Dynamic.
Allow Suggest Another parameter allows you to retrieve an alternative target location during the put phase of the replenishment.
4- Assigning a dedicated Putaway Algorithm for Dynamic Replenishment:
Create or assign a putaway algorithm to handle replenishment jobs, determining target locations for restocking.
The selected algorithm can be assigned for the dynamic replenishment by marking the "Use this algorithm as dynamic replenishment algorithm" checkbox.
A template is available for your dynamic replenenishment algorithm(REPLENISHMENT_ALGORITHM), however, the algorithm can be customized by adding conditions, actions, order by settings or adding if else rules.
Each account can utilize one unique algorithm for replenishment, if another algorithm is assigned for the dynamic replenishment, prior algorithm will become passive.
At least 1 Replenishment Algorithm will remain in the system.
To learn more about how to utilize putaway algorithms, please charticle.
5- Running Job Waves & Calculating Replenishment Quantity:
When job waves are executed, the system evaluates inventory levels and creates replenishment jobs if the defined conditions are met.
Replenishment jobs are created if the following condition is met:
(Replenishment Min Level + Open Order Product Qty) > Total Product Inventory at Target Locations
If this condition is satisfied, the replenishment quantity is calculated as:
ReplenishmentQty =Replenishment Max Level + Open Order Product Qty - Total Product Inventory at Target Locations - Job Quantity
If the Max value is 0, the Min value is used in calculation.
To learn more about how to create wave rules for replenishment, please check this article.
6- Executing Replenishment Tasks:
Replenishment tasks are carried out via the mobile app. The putaway algorithm we select for dynamic replenishment identifies the target location for the put phase.
Depending on the selection within the replenishment job type, users can utilize the "Suggest Another Location" feature for alternative put locations.
7- Dynamic Replenishment Report
Users can get an overview of the replenishment process using the dynamic replenishment report.
This report displays each product's minimum and maximum replenishment levels, total quantity and total free quantity at source locations, available quantity at target locations, open order quantity, open replenishment task quantity (existing replenishment task quantity), and the quantity needed for further replenishment.
Benefits of Dynamic Replenishment
Optimized Inventory Levels: Maintains product levels at desired locations efficiently.
Increased Efficiency: Reduces the need for manual intervention and frequent stock checks.
Enhanced Accuracy: Uses predefined algorithms to ensure accurate replenishment.
Conclusion
Dynamic replenishment is an essential feature to maintain optimal inventory levels at picking locations, ensuring efficient warehouse operations and meeting demand without overstocking. By following the setup steps, you can leverage this feature to streamline your inventory management processes.
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