Allocation and Replenishment

Core Process

About Allocation and Replenishment

About Part Need Allocation

Allocation reserves stock for a part need. When you allocate a part need, it adds the number of parts allocated to the allocated quantity on the Stock record, reducing the available quantity, and adds the number of parts to the allocated quantity on the part need. Depending on the stock on hand, a part need may be partially or completely allocated. Only part needs with a non‐ zero quantity allocated can be picked and shipped.

IFS Field Service Management (FSM) determines the place and location to obtain stock by performing these tests in the following order.

  • If a Part Need Place/Location Selection rule (process 129) exists, the place and location specified on the rule is used.
  • If the part need has a place entered in the Place ID To field, a place related to the specified place with a “place for stock” relationship is used.
  • If the part need is related to a task and a person is assigned to the task, a place related to the specified person with a “place for stock” relationship is used.
  • If the part need is related to a request, a place related to the place that created the request with a “place for stock” relationship is used.
  • If the part need has a person assigned to it, a place related to the specified person with a “place for stock” relationship is used.
  • If no location is specified on the “place for stock” relationship, that place’s default shipping location is used.
  • If a lot is specified, only that lot can be used.

After a part need is allocated, it can then be picked and shipped. The type of allocation you perform is determined by the ALLOCATE_NEEDS_UPON_INSERT application parameter. When Y (yes), simple allocation is performed when the part need is created. When N (no), you must perform advanced allocation.

Simple Allocation

Using simple allocation, as soon as a part need is created, it is immediately allocated. If stock is not available, then the part need is backordered. When stock becomes available, backorders are automatically allocated by earliest date needed.

Advanced Allocation

Using advanced allocation, part needs are created but are not allocated. For example, when you create preventative maintenance requests with part needs, the request might be scheduled six months in advance, but you do not want to allocate the part needs until the week of the preventative maintenance. Two features of Logistics Manager are used for advanced allocation of part needs:

  • The Set Part Need Places function sets the ship‐from place and location based on the same criteria used for immediate allocation.
  • The Allocate Part Needs function allocates the part needs.

Allocation Adjustments

The Allocation Adjustments function of Logistics Manager enables you to change allocation of part needs when situations change. Stock movements can also create situations that might require adjustment; if stock is removed from a bin, part needs allocated from that bin may become backordered. Also, if stock is added to a bin, part needs backordered from that bin are allocated.

About Replenishment 

Replenishment is a method of creating part needs to move stock to another location. A replenish option on the stock record determines whether that stock can be replenished.

Typically, you replenish to add stock to a service truck from the warehouse, or to move repair parts from repair stock to the repair bench.

Before you can perform replenishment, you must specify the appropriate amounts for minimum and maximum quantities, either by using stock min/ max analysis or by setting them manually. If you fill to minimum and the minimum is zero, then no replenishment occurs except as required to fill backorders.

The following options are available for replenishment:

  • Fill backorders and then fill to maximum if the quantity on hand isless than the minimum
  • Fill backorders and then fill to the maximum
  • Fill backorders and then fill to the minimum
  • Reduce the quantity on hand to the maximum, which is used to return excess stock to the warehouse

Part needs created by replenishment are allocated immediately when you use simple allocation.

About Suppliers

Supplier records are used to identify the source of parts, goods, or services. A supplier can be an external vendor or an internal source such as a manufacturing facility. A supplier can also be a third‐party repair center. Suppliers can provide one or more items, and an item can be provided by more than one supplier.

When multiple suppliers exist for a part, the supplier is chosen by performing these tests in the following order.

  • Refill Supplier ID business rules (process 06) are evaluated.
  • The Part record is inspected for a primary supplier.

If a supplier cannot be determined, then purchase orders cannot be created.

About Purchase Orders

Purchase orders are used to obtain parts from suppliers. They are either created using the refill to targets function, as described below, or you can create them manually.

Purchase order lines can be specified with its own currency. Specified currencies will be used to find and use cost records with that currency when determining the cost of the item on that line. If no match exists, cost is determined by conversion of the corporate currency to the purchase order currency.

After purchase orders are created using refill to targets, you review them, make any necessary changes, and post them.

About Refill to Targets

This process examines the stock that is not committed and automatically creates purchase orders to increase stock to the maximums calculated. If the value of the application parameter COUNT_PROPOSED_POS_FOR_REFILL_TO_TARGETS is Y (yes), open purchase orders are considered and the stock on open purchase orders does not appear on the new purchase orders that are automatically created. Purchase orders are created in order based on promised date on the part need, beginning with the earliest date.