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Calculation of ESO Algorithm Appears Incorrect for RMS Replenishment Process (Doc ID 2743903.1)

Last updated on AUGUST 19, 2021

Applies to:

Oracle Retail Merchandising System - Version 16.0.3 and later
Information in this document applies to any platform.


The ESO(estimated stock out) calculations for dynamic WH(warehouse) replenishment did not see to align with the description the Replenishment Technical Brief of RMS(Retail Merchandising System).
In the Technical Brief it states the ESO includes the OLT(order lead time), Forecast and RT Forecast.
The formula is: (OLT Sales Forecast + Review Period Sales Forecast) – (Current SOH(stock on hand) + OLT Receipts).

Steps to replicate the issue are:

  1. Create a Supplier Site. Set Supp Inv Mgmt Level = Supp/Loc.
  2. Setup Sup Inv Mgmt parameters, incl. Scaling at 40-42K LBS, Scaling Objective as Max, Single Loc PO, Truck Split at 40K LBS with 5% tolerance.
  3. Create Items with Case Dimensions with Weight. 8 items. All had Supp Pack Size of 48 and Case Weight dimensions of 40 LBS. 4 were Min/Max, 4 were Dynamic.
  4. Set items on WH Replenishment to the WH with Repl order Ctl = Automatic. Make it so the ROQ is a little less than 40,000 LBS so the scaling program will try to scale it to the Max (42,000 LBS). Setup on Due processing.
  5. Inventory Adjust a little inventory into the WH, but not enough where it wouldn't create an ROQ(recommend order quantity).
  6. Run Replenishment batches.

ESO was calculated as 10. As a result of ASO(accepted stock out) > ESO calculation, it marked the item as not due.


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