Replenishment is an act by which stock [inventory] is reset to an optimum level, to avoid running out of stocks. The optimum level of inventory that needs to be maintained is governed by various factors like cost, consumption patterns and availability.
The role of an enterprise application in this area has evolved significantly over time, inventory replenishment is a vital operation in any make to order/make to stock/retail business.
Replenishment in PeopleSoft’s SCM suite is as dynamic as it can be, providing the user with manifold parameters to set up inventory replenishment.
Par location replenishment:
A unique replenishment method that enables the user to trigger replenishment requests, without considering the stock on hand of an item. The desired stock level for each item is set at each par location. Consumption of such items is registered via the count par replenishment transaction and replenishment is generated via generate par replenishment request process – [INPGCDMD].
If the consumption is registered as “count quantity” – the replenishment is generated for the difference between optimum quantity and the count quantity.
If the consumption is registered as “request quantity” – the replenishment is generated for the quantity that is requested.
Based on the par location replenishment options, the material stock request is generated for stocked items, purchase requisition for non-stock items and purchase order will be generated for stock-less items.
An example of a par location would be a hospital ward or a nurse station where medical consumables from a 'ward' or a 'nurse station' would be replenished as and when the consumption happens.
Many customers have been creating purchase requisitions for Par Replenishments. Some of the customers have relayed their feedback as “The Purchase Requisitions generated via par replenishment process need manual correction for “Item price and GL BU” defaulted values.”
Effective from Image #34 this Customer pain point has been addressed. The requisitions for non-stock items generated via par replenishment would not require any more manual corrections as this has been addressed through enhancement.
The installation page now gives an option for the user to use this new feature or to continue as is.
On “Yes” being selected, when the par replenishment process INPGCDMD is executed for a par location with non-stock items, the requisition loader program PO_REQLOAD is kicked off instantly. The message log of the requisition loader will contain the details of the requisition id.
The review par location page now has a new tab detailing the requisition details that have been generated. Any error during the requisition generation can be tracked here and can be subsequently corrected. The requisition loader process must be executed manually post error correction.
In the case of manual execution of requisition loader, system source BPL that has been introduced for this feature must be used.
PeopleSoft users can now leverage this delivery in Image #34, to ensure that the requisition [and the subsequent purchase orders] for the replenishment of non-stock items are generated seamlessly.
Refer the following link to get an additional understanding on Peoplesoft par replenishment process
Thanks to Narayanan Mahalingam for authoring this blog.