Assortment optimization, pricing decisions, and promotional activity fall flat if a product is not available for purchase. Out-of-stocks, overstocks, and markdowns drive down already strained profit margins. Replenishment, however, maximizes sales while minimizing inventory expense. By understanding replenishment, and planning and allocation, enterprise can determine the best strategies for addressing forecasting and inventory concerns, and improve profit margins.
forecasts for absent or vacationing employees
and updates to demand forecasts and automatic creation of purchase orders are common functions supported by most leading solutions. To enable replenishment solutions to perform these automated adjustments and decisions, several item / location specific variables are required and considered in the process. Examples include presentation minimum, seasonal selling profile, buying multiple, shipping multiple, order cycle, safety stock or service level goal, leadtimes, vendor ordering requirements and daily