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Replenishment Parameters

What are Replenishment Parameters?

· Replenishment Parameters are the specifications that have a significant effect on the Replenishment Plan.

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· Following are the Parameters used in the Application.

  1. Weekly Calendar Type: Whether the weekly calendar should be populated based on week of year or week of month. The week of year is the normal 52 weeks in a year. Week of month is hard coded week split. This split is defined in the table below the Parameters after saving.

  2. Safety Stock History Months: While calculating Safety stock, how many months' history it should consider.

  3. Customer Service Level: Customer service level that needs to be considered for safety stock calculation. Ideally, the value should be between 85 and 99.

  4. Supply Variability: Supply variability that should be considered for safety stock calculation. The value should be between 0 and 1.

  5. Replenishment Horizon: Replenishment horizon for calculating replenishment buckets.

  6. Replenishment Start Date: Start date for replenishment. This needs to be populated when we move from one replenishment cycle to the next.

  7. Safety Time from Current Bucket: When calculating safety stock using Safety Time, whether the demand should be considered from the current bucket or the next bucket.

  8. Frozen Horizon Buckets: Number of buckets where no requirements will be generated.

  9. Forecast Data Measure: Forecast data measure that should be considered as Forecast for Replenishment Planning.

  10. Carry Forward Demand: When the ending on hand comes to negative in one bucket, can the negative inventory be carried forward to the next bucket. If the value is False, then the next bucket Beginning on Hand will be 0 even if the previous bucket Ending on Hand is negative. If the value is True, then the negative inventory of the previous bucket Ending on Hand will be the same as Beginning on Hand of the current bucket.

  11. Deployment Plan Rule: While deploying the stock, the deployment plan could be based on Proportional Demand, Target Safety Stock, Split Percentage or Priority

  12. Deployment Strategy: Deployment Strategy could be Pull Deployment, Pull Push Distribution or Push Distribution by Demand.

  13. Deployment Pull Horizon Buckets: If the Deployment Strategy is Pull Push Distribution or Push Distribution by Demand, we can specify the number of buckets of demand it should pull from the supply.

  14. Deployment Push Horizon Buckets: If the Deployment Strategy is Push Distribution by Demand, we can specify the number of buckets of supply that should be pushed to demand.

  15. Replenishment Lead Time Offset: Replenishment planning is bucket based backward calculation. Based on the lead time, we need to figure out in which bucket, the supply should be created. The calculation of which bucket is based on lead time will depend on whether we are calculating from the end of the bucket or the beginning of the bucket. Possible values are Start, Middle and End. Suppose, Replenishment Planning is in the weekly bucket of 7 days and the lead time is 9 days. If the value is Start and we are in the 3rd bucket, then the offset of 9 days will come to the 1st bucket. If the value is End and we are in the 3rd bucket, then the offset of 9 days will come to the 2nd bucket.

  16. Deployment Lead Time Offset: Deployment planning is bucket based forward calculation. Based on the lead time, we need to figure out in which bucket, the supply will be fulfilled. The calculation of which bucket is based on lead time will depend on whether we are calculating from the end of the bucket or the beginning of the bucket. Possible values are Start, Middle and End. Suppose, Deployment Planning is in the weekly bucket of 7 days and lead time is 9 days. If the value is Start and we are in the 1st bucket, then the offset of 9 days will come to the 2nd bucket. If the value is End and we are in the 1st bucket, then the offset of 9 days will come to the 3rd bucket.

Monthly Weeks

· If the Weekly Calendar Type is ‘Week of Month’ the user has to define Monthly Weeks in the Parameters screen.

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Week No A week identifier
From Date From the date of the week.
To Date To date of the week.
Forecast Split Split value for converting the monthly forecast to the user-defined weekly buckets. Suppose, the forecast for a month is 120. The total forecast is divided into Weekly buckets and each Week will have a forecast split of 30.

· Click on Add flag and define Monthly Weeks. Save it.

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