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.
A location profile for the picking location needs to be set up. This picking location is used to be replenished from bulk locations based on the replenishment strategy.
The picking location “400” is created for warehouse “1”:
We set up a replenishment template so that replenishment work is created if a quantity in a location cannot meet the demand for a wave or load. The quantities are evaluated for the item and location when the work for the wave or load is created. The following fields need to be filled:
- The Replenishment type must be chosen (Wave-demand based, Min Max Based or Load-demand based)
- In the Directive code field, it is optional to select the directive code that is associated with the location directive that will determine where to pick the replenishment items from.
- Optionally we can specify the work template to create the work in the Work template
- In the Minimum quantity and Maximum quantity fields, we specify a range of quantities to replenish.
- In the Replenishment unit field, select the unit of measure to use for the replenishment.
- In the Demand increment field, we select the principle to use when rounding quantities. The replenishment quantity will be rounded up or down to the nearest increment based on the selection in the Replenishment unit This is only relevant when the replenishment unit is different to the item unit.
- Optional: If we have specified fixed locations for the items, we can use the following options:
- Evaluate empty fixed locations: this check box is used to replenish fixed locations for items when they are empty. Otherwise, only the locations where there is a quantity on hand will be replenished.
- Replenish only fixed locations: this check box is used to replenish only fixed locations for items. Locations that are not specified as fixed locations for the items will not be replenished.
- As this is the case for item WINE006 that is used for the Min- Max- Strategy, we activate both check boxes.
With the “Select products” button, we assign item “WINE006” to this replenishment item:
A location directive for replenishment has to be created once for the pick operation and once for the put operation.
Location Directive for Pick Operation:
- The checkbox “Allow split” needs to be activated to pick from multiple bulk locations within the replenishment process
- The location profile ID “BULK-WINE” is assigned in the query of location directive actions
Location Directive for Put Operation:
- Whitin the location directive actions for the put operations, we don’t need a query as we define that the put operation is only allowed for a fixed location for the product.
For both location directives, it is necessary to add the correct replenishment template via “Edit Query” in the location directive header:
A work template with one pick and one put operation is created. The work class ID “Replenish” has been created before and is assigned.
Via “Edit query” the warehouse “1” is assigned:
A mobile device menu item for replenishment is setup and linked to the work template using the work class ID “Replenish”. The menu item is setup “User directed”.
The following stock is on hand for item WINE006 which is used for replenishment in this case study:
We start the replenishment by clicking on “Warehouse Management à Replenishment à Replenishment”:
The correct replenish template has to be chosen and confirmed:
A work has been created. As a stock of 47 bottles on the pick location is below the minimum (50), the location is replenished to the maximum (100). This means a total of 53 bottles:
- 8 bottles are picked from Location B-01-01-03 (should be nearest to pick location)
- 45 bottles are picked from Location B-02-02-02
After the work has been executed on the mobile device, the work is closed:
The on hand inventory shows the following picture: