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E-WMS - Replenishment process

WMS documentation

Introduction

This document describes the E-WMS Replenishment process, as available per product update 412. 

Description

E-WMS Replenishment offers functionality to replenish stock in warehouses or on picking locations, based on either specific minimum and maximum levels, or based on requirements for planned fulfilments (sales orders and production materials). E-WMS will calculate which locations or warehouse need to be replenished and, if Route Optimizing (picking advice) is enabled, will calculate an advice to replenish these locations where serial/batch expiration dates can be taken into account.

For the usage of E-WMS Replenishment following prerequisites apply:

  • SE1381 E-WMS II
    or older licenses:
  • SE5700 WMS Basic
  • SE5705 WMS Route Optimizing (when a generated replenishment picking advice is required)
  • SE5710 WMS Replenishment
  • SE5760 WMS RF

This document has following sections:

The replenishment generation process can be divided in two main parts: calculating the requirement and calculating the picking advice. These are two different steps before a picking advice is send picking.

Generating replenishment orders

Requirements can be calculated either based on preconfigured fixed minimum and maximum stock levels per location (or per warehouse), or otherwise based on 'needs' for sales orders and production order materials. For both methods, WMS Item Locations (or Items per WMS Location Type) need to be configured when you are using warehouse locations. This is required to establish which locations are to be used for picking, and what quantities would maximum fit on those locations.

'Calculating requirements' is the same as 'Generating replenishment orders'.


Replenishing based on minimum and maximum levels per location

If you want to use replenishment based on preconfigured minimum and maximum levels per location, following applies:

  • WMS Replenishment setting 'Requirements only' has to be disabled
  • When working with warehouse locations: you need to configure minimum and maximum stock levels per item per location in WMS item locations or in WMS Items per Location type for all items and locations to be replenished
  • When not working with warehouse locations, so replenishing between warehouses: you need to configure minimum and maximum stock levels per warehouse in Exact Globe Next item maintenance, Inventory tab.

The rules for calculating the requirement in this case are:

  • The 'trigger' to detect a shortage is comparing the available stock with the configured minimum stock for that item
    • Unprocessed WMS receipts for the target locations or warehouse are subtracted from the quantity to replenish;
      • Already generated (including status 'new') replenishment orders are subtracted from the quantity to replenish
      • Before release 408, this includes only unprocessed WMS replenishment receipts
      • From release 408, these are all unprocessed WMS receipts (receipts, transfers, replenishment)
    • 'Available stock' is the processed shelf stock
      • From release 408: when the setting 'regard picked as issued' is enabled, then this is shelf stock minus picked but not processed (visible or physical stock)
  • The quantity to be replenished depends on the WMS Replenishment setting 'Stock Replenishment':
    • If set to "Purchase order level" (minimum level) the shortage is calculated as:  minimum level minus 'available' stock
      • never use '0' as minimum stock, but at least '1'
    • If set to "Maximum level" the shortage is calculated as: maximum level minus 'available' stock
    • When working with SKU Management then the quantity to replenish can be rounded to a full SKU, depending on the advice setting 'Full SKU replenishment'


Replenishing based on 'requirements only'

If you want to use replenishment based on requirements for sales orders and production orders, following applies:

  • Replenishment setting 'Requirements only' has to be enabled
  • the Replenishment setting 'Stock Replenishment' determines to what level stock should be replenished
  • When working with warehouse locations: you need to set up minimum and maximum stock levels per item per location in WMS item locations or in WMS Items per Location type for all items and locations to be replenished
  • From release 412, you are able to assign the planned material issue location as replenishment target location.
    When this setting is enabled, only the planned issue location is scanned for requirements for this item and order.
    This means you still have to configure this issue location in WMS item locations or in WMS Items per Location type with minimum and maximum levels.
    Only when the planned location is not filled in the material line, replenishment will use the regular replenishment target locations.
  • When not working with warehouse locations: you need to configure minimum and maximum stock levels per warehouse in Exact Globe Next item maintenance, tab Inventory

A typical difference of order-based replenishment compared to replenishment based on minimum/maximum stock levels, is that the total quantity required can be spread over all target locations, until the total quantity needed is available. If the maximum of all target locations is however lower than the total requirement, than the total requirement cannot be replenished at that time. As soon as there is 'room' again on the target locations (which can be combined with the setting 'Regard picked as issued'), the remaining requirement can be replenished to the target locations having room.  'Real-time replenishment' offers the possibility to automate the process of replenishing picking locations as soon there is room because someone picked stock.


The rules for calculating the required quantity in this case are:

  • The 'trigger' to detect a shortage is comparing the available stock with the order requirement for that item.
    • Where 'available stock' is the processed shelf stock
      • when working with warehouse locations: the total stock of all picking locations in the same warehouse
      • From release 408: when the setting 'regard picked as issued' is enabled, then this is shelf stock minus picked but not processed (visible or physical stock)
    • Unprocessed WMS receipts for the target locations or warehouse are subtracted from the quantity to replenish;
      • Already generated (including status 'new') replenishment orders are subtracted from the quantity to replenish
      • Before release 408, this includes only unprocessed WMS replenishment receipts
      • From release 408, these are all unprocessed WMS receipts (receipts, transfers, replenishment)
    • The 'order requirement' is determined as following:
      • all open sales order lines for the selected warehouse with a planned delivery date before or equal to 'today' + setting 'Days in advance'
      • all open production order material lines for the selected warehouse with a planned start date before or equal to 'today' + setting 'Days in advance'

      From release 412, you have additional selections available for order based replenishment (see next chapter).

  • The quantity to be replenished depends on the WMS Replenishment setting 'Stock Replenishment':
    • If set to "Purchase order level" (minimum level) the shortage is calculated as:  
      • the highest value of either the location minimum or the calculated requirement for the orders
      • minus already available stock or unprocessed WMS receipts for the target location
      • never use '0' as minimum stock, but at least '1'
    • If set to "Maximum level" the shortage is calculated as: maximum level minus 'available' stock
     
  • When the scenario setting is set to scenario 'A', then the requirement is determined from existing picking advice for sales orders, instead of just the entered sales orders.


Requirements for sales- or production orders

From product update 412, you have the option to generate replenishment orders only for the requirements of sales orders, or only for requirements of production order materials.

When generating replenishment orders in the control center, you have several selections available based on sales orders and production orders, including the choice 'None' for sales- or production orders.
When using Auto queue to automatically generate replenishment orders, similar settings are available (see next section 'Auto queue for replenishment').


Generate separate replenishment orders per target order

From release 412, you can choose to generate separate replenishment orders per target (sales- or production order, or selection code). This enables the possibility for the warehouse employee to see for which target order he is replenishing, by using the scanner replenishment submenu 'by reference 2'. 'Reference 2' is automatically filled by E-WMS with the target order number or selection code. When generating separate replenishment orders per 'selection code', the replenishment orders are generated per different order type (sales/production) and per selection code. When not creating separate replenishment orders, the replenished quantities can be a total for several orders (bulk replenishment).

You can configure in the WMS replenishment settings to always generate separate orders, and in addition you can still change this when generating orders in the control centers.


Please note that generating separate replenishment orders per target order has some side effects:

  • status messages in the control center report (generate orders) or in RF monitor (Auto queue service) are shown seperately per target order: you will see more messages than without splitting orders
     
  • depending settings and stock levels, an incorrect target order number can be indicated in 'reference 2': when the same item is required on the same target location, for two or more orders, and generating replenishment orders in two or more steps.
    The replenishment process does not 'remember' for which orders a replenishment order was already generated, the quantities to replenish are not 'allocated' to the target orders.
    New replenishment orders are always first generated based on total requirements per target location (not: requirements per order) and only after that, optionally created as separate replenishment orders.

Therefore, generating separate replenishment orders will only work when you are generating replenishment orders, pick and process these replenishment orders, and then pick and process the sales- or production orders; or when you use different target locations per production order.


To illustrate, following scenario may not show the correct target order number in 'reference 2':

  1. material PART1 is required for production orders PR...01 and PR...02, target location PR01
  2. a replenishment order is generated, split per target order, resulting in two replenishment orders, with 'Reference 2' "PR...01" and "PR...02"
  3. the replenishment orders are picked and processed
  4. new production order PR...03 is entered, also requiring material PART1 for target location PR01
  5. when now generating replenishment orders split per target order, 'reference 2' may again show "PR...01"

The following scenario would show the correct target order number in 'reference 2':

  1. material PART1 is required for production orders PR...01 and PR...02, target location PR01
  2. a replenishment order is generated, split per target order, resulting in two replenishment orders, with 'Reference 2' "PR...01" and "PR...02"
  3. the replenishment orders are picked and processed
  4. the materials for production order PR...01 and PR...02 are picked and processed in E-WMS Production Issues
    (removing the replenishment requirement for these orders)
  5. new production order PR...03 is entered, also requiring material PART1, target location PR01
  6. when now generating replenishment orders split per target order, 'reference 2' will show "PR...03"

Or, because of a different target location, this scenario would also work:

  1. material PART1 is required for production orders PR...01 and PR...02, target location PR01
  2. a replenishment order is generated, split per target order, resulting in two replenishment orders, with 'Reference 2' "PR...01" and "PR...02"
  3. the replenishment orders are picked and processed
  4. new production order PR...03 is entered, also requiring material PART1, target location PR02
  5. when generating new replenishment orders split per target order, 'reference 2' will show "PR...03"

Auto queue for replenishment

You can automatically generate replenishment orders and picking advices for these orders, using E-WMS 'Auto queue'. When working with Real-time Replenishment, the usage for Auto queue is mandatory. To work with Auto queue, following is required:

In release 412, additional Auto queue settings 'Requirements: Sales orders' and 'Requirements: Production orders' have been added. 

Calculating replenishment advice

Once a replenishment order is generated, a replenishment advice can be (automatically) generated, depending on the Replenishment advice settings. The setting 'Immediate advice' determines whether a picking advice is automatically generated, after replenishment orders have been generated.

An advice is calculated based on the settings in menu System, General, Settings, WMS Replenishment, section Picking advice. Even when the setting 'picking advice' is disabled, E-WMS will still look at actual available stock. If no advice can be generated then an error report will show and the replenishment order (the requirement) will remain in status 'New'.

The Replenishment advice setting are explained in this document.

Replenishment procedure

The replenishment process consists of following steps:

  • generate replenishment orders (calculate requirements)
  • generate picking advice
  • send to scanner
  • picking
  • reading back
  • validating
  • processing

'Picking' is the only step not performed in the Control Center (or by a service). All steps except 'picking' can be automated, using the E-WMS Auto queue service and the E-WMS Replenishment RF service.

Control center

After configuring the replenishment settings, the control center in menu WMS, To be processed, Inventory replenishment, Control center can be started.

All steps in the control center are described in this document.

Picking

When scanning replenishment orders, the target location is not scanned but assumed, and is shown as instruction text when opening an advice line.

Scanning replenishment is about scanning the stock issue.

On the scanner, select menu '5 Replenishment'. Depending on scanner settings you may see a submenu :

        

By using a specific submenu, you can search and scan replenishment orders: by order (Replenishment ID), by item code, by source location or by 'Reference 2' (=target order, or selection code; from release 412). 

select order target location confirm source location  

 
select the replenishment order the screens shows the target warehouse and target location as information (instruction text) scan the source location (or SKU number) where the item is picked
 

 

Scan item (or barcode, or SKU nr) Scan serial/batch if required Confirm quantity    
   
         


When all lines are done, following screen shows:

     

This document shows more information on general use of the WMS client (edit or delete scanned lines, for example).

Preserving a minimum stock level

It is possible to configure a minimum stock level you want to preserve at the source locations or source warehouse. Just configure 'WMS Item Locations' for these source locations, as you would for the replenishment target locations. The 'minimum' defined per location will not be touched by E-WMS Replenishment. In this case, it is necessary to replenish either only from 'bulk' type locations (to be configured in the Route Optimizing setting 'location policy') or use another warehouse as source warehouse, otherwise there is no clear distinction between target and source locations in 'WMS item locations'.

You can also define a minimum stock level ("Minimum PO level") at warehouse level (item maintenance, tab 'Inventory'). The usage of the minimum per warehouse can be managed by the Replenishment setting 'Check: minimum stock'.  This minimum is only applied when replenishing to another warehouse. When you defined minimum levels both on WMS location level and on warehouse level, then the maximum of these two (sum of minimum location levels versus minimum at warehouse level) will be regarded as not to be used for replenishment.

When configuring minimum stock levels per (source) location, WMS Replenishment will always apply and preserve these minimum levels. The Replenishment setting 'Check: minimum stock' only applies to the minimum level at warehouse level, not at warehouse location level. 

Stock allocations

It is possible to exclude quantities reserved for Exact Globe Next stock allocations as available stock for replenishment. To preserve allocated stock in the source warehouse and prevent usage of these quantities in WMS Replenishment, enable the setting 'Include: allocated to stock' in the general WMS Replenishment settings, section "Generate replenishment orders". This is only applied when replenishing to another warehouse, because stock allocations only exist on item- and warehouse level and not on warehouse location level.

Replenishing to second warehouse while using locations

E-WMS Replenishment supports replenishing within the same warehouse, or between two warehouses. When replenishing to more than one warehouse, please note following:

  • select 'all' warehouses in the control center Replenishment, or select a specific issuing and receiving warehouse
  • the item has to be linked to both the source and target warehouse in item maintenance, 'Inventory' tab
  • 'WMS item locations' must be set up for each combination of warehouse, location and item to be replenished
    (or optional, to define minimum stock positions to preserve in the source warehouse).

Replenishing to second warehouse without using locations

If you do not use locations, the minimum and maximum stock levels are determined from the item/warehouse link in Inventory, Items, Maintain, 'Inventory' tab for the selected item.

Replenishing based on stock levels

The replenishment requirement will be based on the current shelf stock and the 'minimum PO level' when the stock in this warehouse is 10 or less (when the setting 'requirements only' is disabled) and will be filled to the maximum (or minimum, depending on the Replenishment setting 'Stock replenishment'). When in this case the shelf stock was zero and the setting 'Stock replenishment' was set to 'maximum' , a replenishment advice of '50' will be the result.

Replenishment based on requirements

When the setting 'Requirements only' is enabled, the requirement will be based on currently planned fulfillments for sales- and production orders from this warehouse.

When the setting 'Stock replenishment' is set to maximum level, the requirement is always the maximum defined for this warehouse (even when this is less or more than required for fulfillment).
When the setting 'Stock replenishment' is set to minimum level, then the requirement is either the minimum level set for the warehouse or the quantity required for fulfillment (the highest value is applied). When the maximum level set for the warehouse is less than the requirement, then the maximum will be advised - more items "will not fit".

See sample scenario's 6, 7 and 8 below.

Sample scenario's

In all scenario's, locations P1 - P4 are locations of type 'pick location', and locations B1 - B4 and 'REC' are locations of type 'bulk location'. Item code '1000' is a standard (non serial/batch) item.

Scenario 1: replenishing within one warehouse based on minimum and maximum stock positions, to maximum level

Stock positions item code '1000'
location shelf stock WMS minimum stock WMS maximum stock  
P1 10 30 50  
P2 0 30 50  
P3 20 30 50  
P4 5 30 50  
         
B1 50 - -  
B2 50 - -  
B3 50 - -  
B4 100 - -  
REC 250 - -  

There are no sales orders open for this item.

Active replenishment settings:
The setting 'Requirements only' is disabled, so requirement would be calculated based on minimum and maximum stock positions.
The setting 'Stock replenishment level'  is set to "maximum level", so the pick locations should be replenished to the maximum level when the stock level drops below the minimum.

Advice generation in this case:

From location to location quantity why
B1 P1 40 current stock=10, need 40 to reach maximum 50
B2 P2 50 current stock=  0, need 50 to reach maximum 50
B3 P3 30 current stock=20, need 30 to reach maximum 50
B4 P4 45 current stock=  5, need 45 to reach maximum 50


Scenario 2: replenishing within one warehouse based on minimum and maximum stock positions, to minimum level

Same stock positions as in scenario 1, no sales orders.

Active replenishment settings:
The setting 'Requirements only' is disabled, so requirement would be calculated based on minimum and maximum stock positions.
The setting 'Stock replenishment' is set to "purchase order level" (minimum level), so the pick locations should be replenished to the minimum level.

Advice generation in this case:

From location to location quantity why
B1 P1 20 current stock=10, need 20 to reach minimum 30
B1 P2 30 current stock=  0, need 30 to reach minimum 30
B2 P3 10 current stock=20, need 10 to reach minimum 30
B2 P4 25 current stock=  5, need 25 to reach minimum 30


Scenario 3: replenishing within one warehouse based on 'requirements only', to maximum level

Same stock positions as in scenario 1, one sales order for quantity 60.

Active replenishment settings:
The setting 'Requirements only' is enabled, so the requirement is calculated from sales orders and production orders
The setting "Stock replenishment' is set to "maximum level", so the pick locations should be replenished to the maximum level

Advice generation in this case:

From location to location quantity why
B1 P1 40 current stock=10, need 40 to reach maximum level 50

 

Adding 40  to P1 gives a total stock of 75 (P1:50, P3:20, P4:5) , filling P1 to the maximum and total enough for fulfillment.


Scenario 4: replenishing within one warehouse based on 'requirements only', to minimum level

Same stock positions as in scenario 1, one sales order for quantity 60.

Active replenishment settings:
The setting 'Requirements only' is enabled, so requirement is calculated from sales orders and production orders
The setting 'Stock replenishment' is set to "purchase order level" (minimum level), so the pick locations will be replenished to the minimum level, or to the quantity required for the orders

Advice generation in this case:

From location to location quantity why
B1 P1 25 current stock=10, need 25 to reach 35

Adding 25 to P1 gives a total stock of 60 (P1:35, P3:20, P4:5) , enough for fulfillment.


Scenario 5: replenishing to other warehouse while using locations, based on minimum and maximum level, to maximum level

Stock positions item code '1000'
warehouse location shelf stock WMS minimum stock WMS maximum stock  
1 P1 10 30 50  
1 P2 0 30 50  
1 P3 20 30 50  
1 P4 5 30 50  
1 B1 50 - -  
1 B2 50 - -  
1 B3 50 - -  
1 B4 100 - -  
1 REC 250 - -  
           
2 P1 0 30 50  
2 P2 0 30 50  
2 P10 0 60 100  


Active replenishment settings:
The setting 'Requirements only' is disabled, so the requirement is calculated from minimum and maximum location stock levels
The setting 'Stock replenishment' is set to "maximum level"

Control Center Replenishment selection: issuing warehouse = "1", receiving warehouse = "2". Advice generation in this case:

From wh/loc to wh/loc quantity why
1 / B1 2 / P1 50 current stock= 0, need 50 to reach maximum
1 / B2 2 / P2 50 current stock= 0, need 50 to reach maximum
1 / B4 2 / P10 100 current stock= 0, need 100 to reach maximum
       

Source location 'B4' has enough to pick '100' in one 'stop', this advice depends on the picking advice settings for Replenishment. When changing the advice settings to 'make locations empty', the advice is calculated as:

From wh/loc to wh/loc quantity why
1 / B1 2 / P1 50 current stock= 0, need 50 to reach maximum
1 / B4 2 / P2 50 current stock= 0, need 50 to reach maximum
1 / B2 +
1 / B3
2 / P10 50 + 50 current stock= 0, need 100 to reach maximum
       
       

 

Scenario 6: replenishing to other warehouse, warehouse locations not used, based on minimum and maximum level, to maximum level

Stock positions item code '1000'
warehouse   shelf stock WMS minimum stock WMS maximum stock  
1   150 0 0  
2   0 30 50  
           

The minimum and maximum stock levels are set in Item Maintenance, tab 'Inventory', properties of warehouse '2'.

Active replenishment settings:
The setting 'Requirements only' is disabled, so the requirement is calculated from minimum and maximum stock levels
The setting 'Stock replenishment' level is set to "maximum level"

Control Center Replenishment selection: issuing warehouse = "1", receiving warehouse = "2". Advice generation in this case:

From wh to wh quantity why
1 2 50 current stock= 0, need 50 to reach maximum
       

 

 

Scenario 7: replenishing to other warehouse,  warehouse locations not used, based on requirements, to minimum level

Stock positions item code '1000'
warehouse   shelf stock WMS minimum stock WMS maximum stock  
1   150 0 0  
2   0 30 50  
           

The minimum and maximum stock levels are set in Item Maintenance, tab 'Inventory', properties of warehouse '2'.
There is one sales order (approved and confirmed) to be fulfilled from warehouse 2 for quantity 40.


Active replenishment settings:
'Requirements only' is enabled
'Stock replenishment' is set to "purchase order level" (minimum level)

Control Center Replenishment selection: issuing warehouse = "1", receiving warehouse = "2". Advice generation in this case:

From wh to wh quantity why
1 2 40 current stock= 0, need 40 for fulfillments from warehouse 2
       

 

 

Scenario 8: replenishing to other warehouse, warehouse locations not used, based on requirements, to minimum level, but requirement is higher than maximum

Stock positions item code '1000'
warehouse   shelf stock WMS minimum stock WMS maximum stock  
1   150 0 0  
2   0 30 50  
           

The minimum and maximum stock levels are set in Item Maintenance, tab 'Inventory', properties of warehouse '2'.
There is one sales order (approved and confirmed) to be fulfilled from warehouse 2 for quantity 75.


Active replenishment settings:
'Requirements only' is enabled
'Stock replenishment' is set to "purchase order level" (minimum level)

Control Center Replenishment selection: issuing warehouse = "1", receiving warehouse = "2". Advice generation in this case:

From wh to wh quantity why
1 2 50 current stock= 0, need 75 for fulfillments from warehouse 2,
      but maximum for this warehouse is 50
       

Troubleshooting

When generating replenishment orders does not show the items or quantities you expected, then this document has some troubleshooting tips. 

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