Concept: Inventory Replenishment

Replenishment is a process of restocking inventory. Workday monitors stock levels and replenishes inventory when levels drop below your designated reorder points. Workday provides 3 replenishment options:

Restock inventory through replenishment from an external supplier using a requisition.

Restock inventory through a transfer stock request between sites.

Send a My Tasks notification, listing each item in each site that requires replenishment.

Calculating Replenishment

Workday triggers replenishment when a Calculated Inventory Level
is less than or equal to a Reorder Point Level
. The reorder point is a point below which a restocking event needs to occur. You set it when configuring purchase items.

Workday calculates the inventory level using this method:

Calculated Inventory Level = Adjusted QOH + On-Order Supplies (Optional) - Open Demands (Optional)

Adjusted QOH (Quantity On Hand)	Total inventory site quantity on hand minus any stocking or storage locations where the Include In Replenishment option isn't enabled. Example: You have 2 storage locations set up at an inventory site, Bin A (100 EA) and Bin B (25 EA). Bin A has the Include In Replenishment option selected and Bin B doesn't. The adjusted QOH for this item would be 75 EA.
On-Order Supplies	Open supply orders. Expected replenishment requisitions and transfer stock requests that Workday hasn't put away in the inventory site. Workday uses open requisition lines, not open stock requests or purchase orders for the inventory site in the calculation.
Open Demand	Open stock requests in the inventory site that you haven’t fulfilled.

Methods of Replenishment

Min-max replenishment

: Specify a reorder point level, a maximum level, and a replenishment unit of measure (UOM) on the

Inventory Site Options

tab of the

Create Purchase Items

task. When on hand inventory drops to or below the reorder point level, Workday creates a replenishment to restock inventory. Workday creates replenishment orders in ordering units of measure. Workday orders Items replenished from your inventory in an issuing UOM. Items replenished from a requisition are in the ordering UOM for the item.

Example: You set the reorder point level for an item as 50 each and the maximum inventory level as 100 each. The replenishment process calculates the item's inventory level as 35 each. Since the calculated inventory level is less than the reorder point, Workday creates a replenishment request for 65 each. (Maximum Inventory Level (100 each) - Calculated Inventory Level (35 each) = Reorder Quantity (65 each))

Fixed reorder point replenishment

: Specify a reorder point level in the base unit of measure in the

Inventory Site Options

tab of the

Create Purchase Items

task. When on hand inventory levels drop to, or below the reorder point, Workday creates an order in the quantity that you define in the

Fixed Order Unit of Measure

Example: You set the reorder point level as 50 each and the calculated inventory level is 35 each. Workday creates a request for 5 boxes, based on the order quantity and replenishment unit of measure set for the item.

Item Level Sourcing

: Create and define replenishment options for an item at the item-site level. You can create both stock requests and requisitions based on sourcing options at the item level. You can also set notifications for replenishment for users in addition to the requester.

Example: You want to replenish exam gloves from a different source company that you specified for your inventory site. You also want to set notifications for the inventory manager and the person who requested the item.