Replenishing items in picking locations from bulk locations is a common process in many industries. In this chapter, we will focus on the “minimum- maximum replenishment functionality” provided by Microsoft Dynamics 365. Generally, three different replenishment strategies are available:
- Wave demand replenishment: This strategy creates replenishment work for outbound orders or loads if inventory isn’t available when the wave creates work. For example, replenishment work can be created if the quantity that is required for a sales order isn’t available when a wave is processed.
- Min/Max replenishment: This strategy uses minimum and maximum stocking limits to determine when locations should be replenished. The item and location criteria define the inventory that is evaluated for replenishment. Min/Max replenishment templates are the primary mechanism for maintaining optimal levels in picking locations. To ensure that enough pick face inventory is available to meet wave demand, you can use demand replenishment as a supplement between Min/Max replenishment cycles.
- Load demand replenishment: This strategy sums the demand for several loads and creates the replenishment work that is required in order to stock the relevant picking locations. This strategy helps to ensure that the loads that are created can be picked in the warehouse after they are released.
All three strategies create replenishment work, based on a replenishment template.