Transfer orders and replenishment

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Transfer orders help you handle items that are in transit between warehouses that are within the same company but in different geographical sites.

You can use the Transfer order page to manage items that are in transit. Items are unavailable for use when they are in transit because they are automatically registered at a transit warehouse during the transfer period. You can ship and receive order lines or parts of order lines.

Transfer orders can be used even if only one warehouse involved in the process has warehouse management active in the system. The warehouse with active warehouse management can use the mobile device to process the order.

Setup

The following configurations are required for using the mobile device to process transfer orders:

  • Transit warehouse - Items in transit are automatically registered at the transit warehouse.

  • Menu items - Mobile device menu items are necessary for warehouse workers to use the mobile device to receive transfer orders.

  • Work templates - You can set up one or more work templates to specify how to create the work to pick and receive inventory for transfer orders.

  • Location directives - Location directives, along with work templates, determine how and where work is carried out.

  • Wave templates - Wave templates help specify criteria that determines what work is generated for a warehouse when a wave is processed.

  • Process transfers - After this configuration is complete, you can process transfers.

Wave templates

You can use the same wave template that is used for sales orders for transfer orders. If a new wave template is required, make sure that you use the Edit query button to filter each wave template to the specific criteria that should be used for the selected template.

Screenshot of the Finance and Operations Edit query button.

Process

The transfer order process consists of the following steps:

  1. Create transfer orders. This is considered as part of outbound processes.

  2. Reserve items in the transfer orders.

  3. Create loads for the transfer orders.

  4. Release the transfer orders to the warehouses that are associated with each order.

  5. Pick items for each transfer order.

  6. Receive the transfer order on the destination. This is considered as part of inbound processes.

Even though steps 5 and 6 can be done in the Supply Chain Management web client, by using a mobile device, you make these tasks more convenient for the warehouse workers.

Replenishment

The following 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 help guarantee 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 to stock the relevant picking locations. This strategy helps guarantee that the loads that are created can be picked in the warehouse after they are released.

  • Immediate replenishment - This strategy replenishes inventory before a wave is run if allocation fails for a location directive line that has a replenishment template.

All four strategies create replenishment work, based on a replenishment template.

Wave demand replenishment

Wave demand replenishment creates replenishment work, based on demand, if the quantity that is required for production orders, kanbans, outbound orders, or loads isn't available when a wave creates work. The replenishment template contains information about the item criteria, the unit of measure, the demand increment, and the location.

Location directives are used to determine which location should be replenished. You can link these location directives to the replenishment template by using the Directive code field. If the Directive code field isn't set, queries are used to determine which location directive should be used. If a directive code isn't specified in the replenishment template, and the location directive has a directive code, the location directive will be ignored, even if the query on the location directive is correct. Pick location directives are used to determine where to get inventory for the replenishment.

Along with creating a template, you must also specify some replenishment settings in the wave template. The wave template should contain a wave step for replenishment that is run only if an item isn't successfully allocated. This replenishment wave step uses a wave step code to determine which replenishment template should be used. In addition to having a wave step for replenishment, you must make sure that Replenish is selected in the Methods section of the wave template.

The Replenishment template page includes an Allow wave demand to use unreserved quantities check box. Select this check box if demand replenishment should be able to deduct unreserved quantities from work that is generated from the selected replenishment template. To enable demand replenishment templates to use this logic, select this check box for every existing replenishment template. When demand replenishment is triggered in the warehouse, it will deduct the demand from existing replenishment work that has unreserved quantities, if the work originates from replenishment templates where the Allow wave demand to use unreserved quantities check box is selected.

In order to eliminate errors when entering the Wave step codes in a replenishment template, the Wave step codes must be set up in a table first. This way a valid step code is entered in the field for a Wave demand replenishment template.

Screenshot of the Finance and Operations Wave step codes page.

Screenshot of the Finance and Operations wave demand replenishment template.

Demand replenishment is supported for sales orders, transfer orders, production orders, and kanbans.

Warehouse slotting

Warehouse slotting is the process where picking locations can be replenished before releasing orders to the warehouse. The process involves setting up a Slotting template which will calculate the demand from orders - sales and transfers for example - and will then allow users to Run replenishment. The templates are set up for each warehouse as shown in the screenshot below.

Screenshot of the Slotting template details.

In this example, we have a template for Warehouse 51. It will be looking at pending Sales orders. The strategy is for Ordered items, and the other choices are Reserved or Released items. In the details you can see the quantities that are requested to be in the areas defined by the Edit query option, which in the screenshot below, you can choose a specific location or just have it look at all locations. In this example, the warehouse would be looking at running this so that they can replenish items prior to having them released, a valuable practice in a busy warehouse.

Screenshot of the slotting select query page.

The end result of this process, once Locate demand is run, is enabling the Run replenishment option to create the work to refill the picking location.

Screenshot of the Locate demand and Run replenishment options.

Min/Max replenishment

In Min/Max replenishment, stock is replenished so that it's between the minimum and maximum limits that have been set. Typically, this process occurs one time every day to help guarantee that all picking locations are filled to the maximum level before picking starts.

The minimum and maximum amounts are set in a replenishment template. Many of the other settings in the template resemble the settings in templates that are used in Wave demand replenishment. The template should contain one line for each item and location. When you run replenishment by using the batch job, Finance and Operations evaluates whether replenishment is required by using the sequence that the lines are organized in.

The Min/Max replenishment strategy can't replenish an empty location unless the location is set as the fixed location for the item. If the location that must be replenished isn't a fixed location, the system can't determine which item should be replenished. Therefore, at least some on-hand quantity is required before replenishment occurs.

Load demand replenishment

Load demand replenishment sums the demand for several loads and creates the replenishment work that is required to stock the relevant picking locations. Load demand replenishment resembles Wave demand replenishment in many ways. The main difference is how and when Load demand replenishment and Wave demand replenishment are run. Like Min/Max replenishment, Load demand replenishment is run by using a batch job. To set up the batch job, on the Load demand replenishment page, select the replenishment template to use, and set a filter query to specify which loads are used to determine the demand. The location query defines the locations that any available quantity will be subtracted from to meet the aggregated demand of the loads.

Immediate replenishment

Instead of having to sum demand at the end of an allocation process and do replenishment based on the summed quantity, you can apply the Immediate replenishment strategy. When you use this strategy, the inventory can be replenished immediately after a location directive line fails. Therefore, you can set up the replenishment so that it's restricted by specific units and uses quantities that are set for specific locations.

Replenishment setup

To use replenishments, you need to create and configure the following entities:

  • Replenishment templates - Define the units of measurement for the inventory to replenish.

  • Request types - Set up request types to connect a replenishment template with a specific location directive, which could improve the performance when work is created for replenishment.

  • Fixed locations - If you want to replenish empty locations, you must use fixed locations for items. Locations that do not contain a quantity of an item will not be replenished. You can use the replenishment template to specify that you want to replenish empty fixed locations for an item or replenish only fixed locations.

  • Work templates - Set up a work class to control who can perform replenishment work.

  • Location directive - Indicates where these items will be picked from and to where they will be put away.

  • Mobile device menu items - Allow workers to process replenishment work from the mobile device.

Replenishment process

Min/Max replenishment in Warehouse management will create work units to restock inventory based on well-defined criteria. Min/Max stocking limits are used to determine what needs to be restocked and by how much. After these settings have been determined, replenishment can be run manually or set up to run automatically in a batch job.

Demand-based replenishment will create replenishment work for outbound orders that are unable to locate inventory during work creation.

You can run the replenishment either manually or automatically by using a batch job. For example, scheduling replenishment is useful if replenishment is based on Min/Max stocking limits and you want to refill your picking locations at the end of the workday or work week. For load demand replenishment, this is useful if you cannot fulfill a load due to the lack of inventory in a location.