The purchasing features in Vision offer you tremendous flexibility for your inventory replenishment. Vision can help you determine how much of a stock product to buy and when to order to assure the right turnover on each stock item with the lowest outgoing cost.
During End-of-Day processing and during on-demand stock replenishment, the system identifies products in need of replenishment. In some cases, the system creates a replenishment transfer order to move products from the replenishment warehouse to the warehouse that needs the products. In other cases, the system creates pending purchase orders (POs) for needed products and places the POs on the Replenishment Action Report. The report is sorted by vendor, and each PO directed to a vendor is given its own PO number. A recommended order amount is included for each item. Your company's purchasing manager analyzes this report and decides which POs to edit, activate, and send to the vendor.
To learn how Vision handles inventory replenishment processing (i.e., how the system determines which and how many products need to be ordered, whether to place the products on a PO or a transfer order, and more), refer to the multi-part flow chart:
During End-of-Month processing and during on-demand ROP/EOQ recalculations, the system recalculates the various replenishment factors for individual products. The system uses these replenishment factors during End-of-Day processing and during on-demand stock replenishment to identify products in need of replenishment. During on-demand ABC classification, the system reclassifies ABC codes based on ABC models.
To learn how Vision calculates and updates the various replenishment factors, refer to the following flow charts:
Understand how the system updates the manufacturer's average lead time for a product
Understand how the system updates reorder points (safety stock quantity, reorder point quantity, linepoint)
Understand how the system updates the economic order quantity (EOQ)