Replenishment: Including Expected Receipts and Issues
Starting Point
The following table shows a replenishment planning run that includes expected receipts and issues. The run results in replenishment requirements for this week (week 0).
Week |
-2 |
-1 |
0 (today) |
1 |
2 |
Target stock |
200 |
200 |
200 |
200 |
200 |
Actual stock on-hand |
160 |
145 |
160 |
||
Forecast stock |
145 |
135 |
170 |
140 |
150 |
Expected receipts |
55 |
65 |
30 |
60 |
50 |
Expected issues |
60 |
50 |
50 |
50 |
50 |
Replenishment requirement |
30 |
60 |
50 |
How are replenishment requirements determined?
The replenishment requirement for the week is based on the target stock for the week and the forecast stock at the time of the goods receipt. In the example, a replenishment lead time of two weeks is assumed. The replenishment requirement for the current week is calculated as follows:
Replenishment requirement (week 0) |
= |
Target stock (week 0) |
|
- forecast stock (week 2) | ||
|
= |
200 - 150 | |
|
= |
50 |
How is forecast stock calculated?
The forecast stock for any future week is based on the actual stock on-hand for the current week and the expected receipts and issues from now until the future week. In the example, a replenishment lead time of two weeks is assumed. The forecast stock for week 2 is calculated as follows:
Forecast stock (week 2) |
= |
Actual stock on-hand (week 0) |
|
+ expected receipts (week 0) + expected receipts (week 1) - expected issues (week 0) - expected issues (week 1) | ||
|
= |
160 + 30 + 60 - 50 - 50 | |
|
= |
150 |