Replenishment

Replenishment

Replenishment

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How can you provide stores with the right products at the right time — without constantly calculating orders manually, shortages, and excess stock?

The MySales “Replenishment” module automates inventory planning and order generation. The system determines the requirement for each SKU daily and helps maintain a balance between high product availability and optimal stock levels.

The calculation takes into account:

  • sales forecast;

  • current and projected stock;

  • goods in transit;

  • safety stock;

  • presentation stock;

  • forecast write-offs;

  • ordering and delivery schedules;

  • pack multiple;

  • minimum order;

  • shelf life;

  • promotions;

  • additional requirements and logistics constraints.

If necessary, the system also applies order optimisation rules for quantity, value, and logistics constraints. This helps adapt the calculated requirement to actual purchasing and delivery conditions.

The module supports:

  • direct supply;

  • Cross-dock;

  • Picking;

  • Pick to Zero;

  • transfers of goods between stores;

  • reorder point calculation.

The user can monitor generated orders, check the calculation logic, adjust exceptional situations, and manage future deliveries.

Fewer manual calculations. Fewer shortages. Less excess stock. More control over the flow of goods.

How the module works

Replenishment works as a continuous cycle:

Forecast → Stock → Requirement → Schedule → Order → Delivery → Monitoring

First, the system determines future demand. It then estimates how much stock will be available by the time of the next delivery.

Based on supply diagrams, the system determines:

  • when an order needs to be generated;

  • when the nearest delivery is expected;

  • when the following delivery will take place;

  • which demand period needs to be covered.

The system then calculates the recommended quantity, taking into account stock, write-offs, safety and presentation stock, multiples, minimum orders, and shelf life.

If the forecast, stock, schedule, promotion, or other input data changes, the requirement can be recalculated.

Key principle: the system automates routine decisions while retaining the user's ability to check the logic and manage exceptions.

Automatic order formula

The main order quantity is calculated using the formula:

Order = min(Round(Forecast D1D2 + Write-offs D1D2 + Safety stock D1D2 + Presentation stock − Stock D1), Shelf-life limit)

where:

  • Forecast D1D2 — the sales forecast between the first and second deliveries.

  • Write-offs D1D2 — the forecast write-offs of expired products during this period.

  • Safety stock D1D2 — additional stock to protect against demand fluctuations between deliveries.

  • Presentation stock — the minimum product quantity required to maintain the display.

  • Stock D1 — the expected stock at the time of the nearest delivery.

  • Rounding — adjusting the quantity to an allowable pack multiple.

  • Shelf-life limit — the maximum quantity that is reasonable to order so that the product can be sold before its shelf life expires.

 

Stock at the time of the first delivery

The system does not use only the current stock. It forecasts how much stock will actually remain by the time of delivery:

Stock D1 = max(0; Stock O1 - Forecast O1D1 - Write-offs O1D1 + Goods in transit O1D1)

where:

  • Stock O1 — stock at the time the order is generated;

  • Forecast O1D1 — expected sales before the first delivery;

  • Write-offs O1D1 — expected write-offs before the first delivery;

  • Goods in transit O1D1 — goods that will be received by D1.

Thus, the order is generated based not on “how much is available now”, but on “how much will remain when the next delivery arrives”.

Morning and evening delivery

The calculation period depends on when the goods become available for sale.

  • If delivery takes place in the morning, the new goods can already cover demand for that day.

  • If delivery takes place later, the current stock must additionally cover demand until the goods actually arrive.

This logic is determined by the “Morning” parameter in the supply diagram.

How does this affect the calculation period?

If delivery is marked as a morning delivery, the system considers the goods available at the start of the delivery day. Therefore, that day's requirement can already be covered by the new delivery.

If delivery takes place later, the system takes into account that sales must be covered by existing stock until the goods actually arrive.

For this reason, the “Morning” parameter can change the number of days included in the forecast before the first delivery and between the two deliveries.

Calculation example

Suppose:

  • the first order — 28.07;

  • the first delivery — 30.07;

  • the next order — 01.08;

  • the next delivery — 03.08;

  • delivery takes place in the morning;

  • presentation stock = 1;

  • multiple = 1;

  • safety stock = 2.