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Why Isn't WH Inbound Handling Days Included In Supplier->WH Dynamic Replenishment? (Doc ID 2854974.1)

Last updated on MARCH 16, 2022

Applies to:

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

Symptoms

When performing Supplier -> WH Dynamic Forecasted Replenishment, the system calculated Sales Forecasts for the Stores that are replenished by that Warehouse for the item.

As part of the calculation at the Store level, it calculates a Review Time Forecast and an Inventory Selling Days Forecast. The starting period for both of them take into account the Supplier Lead Time, the Pickup Lead Time to the Warehouse, and also the Warehouse to Store Lead Time (there are other factors as well such as Delivery Schedules and Locations being closed, but just keeping it simple for explanation). What is not being considered, is the WH Inbound Handling Days. If the WH->Store replenishment is WH Stocked and not cross-docked, it would seem to suggest that the Inbound Handling Days should be considered to take into account the time it takes for the Warehouse to receive, prepare, and put away the product so it is ready for the stores. If there is 'x' days required to do this, then this should be taken into account, otherwise the Review and ISD Forecasts would not begin on the correct days.

Example:
  Supp LT = 5 days
  Pickup LT = 2 days
  Inbound Handling Days = 1 day
  WH Lead Days = 2 days

When replenishment runs, it will calculate the Current Order Lead Time to the Store (via the WH) to be 9 days (5 + 2 + 2). But, if it takes 1 day for the WH to manage the product once received, it would seem this should be 10 days (5 + 2 + 1 + 2).
1. Setup a forecasted Txn-level item.
2. Range to Warehouses and Stores.
  a. WH should have Inbound Handling Days > 1
3. Have Daily Forecasts loaded for the Store. I suggest making each days forecast unique. For me, I always multiply the day * 10 (i.e. Feb 14 = 140 units forecasted, Feb 15 = 150 units). This helps easier track which days forecasts are being used.
4. Setup on WH-stocked Store replenishment (manual, Constant is fine).
  a. Setup WH Lead Days > 1
5. Setup on WH-Stocked WH Dynamic replenishment for the WH setup in Step #4.
  a. For simplicity, have Net Inventory = 0 for the store and warehouse. Have Lost Sales Factor = 0, Service Level Type= Simple Sales and Service Level = 0.
6. Run replenishment batches
7. Note the Stores Review and ISD Lead Times only start after vdate + 1 + Supp LT + Pickup LT + WH LT. Inbound Handling Days is not considered.

Cause

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In this Document
Symptoms
Cause
Solution
References


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