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      Set up an Item Reordering Plan Using Replenishment Policies 

       

      Overview:  

      • Learn how to set up an Item Reordering Plan Using Replenishment Policies 

      Note: Your business may have high-value items with low or irregular order frequency, high-cost items with frequent, high-volume orders, or low-cost items with constant, regular demand. Understanding how these items behave helps you manage inventory better, keeping what you need in stock without overspending. 

      Why set up an Item Reordering Plan Using Replenishment Policies? 

      Using a replenishment policy for item reordering helps you maintain the right inventory levels, avoiding stockouts and excess stock. It also ensures your orders align with sales demand and supplier delivery lead times. 

      Note: Before you begin, make sure each inventory item is correctly set up for the relevant assembly order, production order or purchase replenishment system. Then, update your planning parameters and reordering policies that match your business strategy.  

      How to set up an Item Reordering Plan Using Replenishment Policies? 

      1. Go to your Item Card in Wiise. 
        1. Update the Replenishment section:  
          reps1 
          1. Replenishment System: The options are Purchase, Prod. Order or Assembly.  
          2. Note: For items that need to be purchased from suppliers, Wiise creates suggestions for Purchase. For items that are produced in-house, selecting Prod. Order will have the system create production orders. Production orders are scheduled within the manufacturing process.  
          3. Lead time Calculation: Consider the lead time to ensure replenishment orders are placed with enough time to meet future demand.  
        2. Update the Planning section:  
          reps2 
          1. Reordering Policy: There are four options to select from which are Fixed Reorder Qty, Maximum Qty, Order or Lot-for-Lot.  
          2. Fixed Reorder Qty is ideal for low-value items or lowest-level components with high, regular order velocity that need constant availability.  
          3. Maximum Qty is ideal for low value items with high carrying costs or limited storage capacity.  
          4. Order: Suitable for high-value items and make-to-order items. These items can be expensive components or special orders. 
          5. Use the Lot-for-Lot policy for items with regular, high order velocity and high carrying costs. In manufacturing, you may apply this policy to components that appear in multiple bills of materials (BOMs). 

            Note: If your reordering policy is blank, the item will not appear in the Planning Worksheets or Requisition Worksheets for calculations for ordering purposes. You’ll need to manually set up purchase orders or production orders when stock runs low. 

            Note: If you’re unsure which policy to select, the Lot-for-Lot policy is a good default choice because it often succeeds without the need for detailed planning parameters. 
          6. Reorder Point: This parameter represents the minimum quantity that triggers replenishment. When the stock falls to or below this level, it signals that it’s time to place a new order. 
          7. Reorder Quantity: This field specifies the standard lot size for every order. 
      2. You’ve created an item reordering plan using the replenishment policies.  

      What’s next? 

      Find out how to Use the Planning Worksheet to Optimise Purchasing Decisions. 

       

      Need more help?    

      No problem, that's what we're here for. Reach out to support@wiise.com anytime you can't find what you're looking for.