aberon F-DRP  STORE REPLENISHMENT

Aberon F-DRP STORE REPLENISHMENT is a complementary module of aberon F-DRP's main body and is responsible for the replenishment of a retail chain's stores. While replenishment of the central warehouse and the regional dependent warehouses is based on the Time Phased Planning model in the main body of aberon F-DRP, replenishment of stores in a retail chain is performed based on the Ordering Point of the traditional stock management theory.
Even though this approach does not provide the perspective of the time shared planning methodology, its simplicity, the automation of the replenishment procedure, in combination with the short replenishment times, make it the ideal stock replenishment method for the stores. For that reason, the stores' stock replenishment method is different from the central and regional warehouses' replenishment method. The aberon F-DRP STORE REPLENISHMENT application automatically calculates all necessary parameters, based on which the application creates automatically the stores' replenishment orders. During application parametrization, the main parameters regarding the stores' inventory keeping policy are provided.

Application Parameters

For every item and store, the following four parameters are set. These parameters are set in an automated way per item category and store category with the assistance of the application's UPDATE WIZARD.

Α.{Maximum Stock} :  This parameter is set per item category or specific item and store group or store and regards the maximum quantity of the item allowed in the store's shelf. This quantity is set in days and depending on the average daily sales calculated, on a daily basis, by the application for each item per store, this quantity is transformed into pieces.
Β. {Minimum Stock} :  This parameter is set in days, as well as the Maximum Quantity, and regards the minimum quantity of the item allowed in the store. This quantity is also called Security Stock of the item in the store. The minimum quantity constitutes, in fact, the stock shield for a specific customer service level selected during the application parametrization phase.
C. {CSL – Customer Service Level} : The Customer Service Level (CSL) refers to the availability of the item in the store and the protection from stockouts. The CSL parameter is a statistical volume relevant to the deviation of sales from the average value, practically gives the supplier the desirable level of protection from stockouts and is used to calculate the best security stock. The application offers a set of predetermined service levels in percentage form (e.g. CLS=95%) that, depending on the item and the store, are selected during the initial parametrization phase.
D.{Target Stock} : This parameter is a Control Parameter and is set in days. It is used to measure the deviations occurring from a selected combination of maximum and minimum stock. For example, for Item A in a store category, the Target Stock is set equal to 15 days. This means that the average stock for such item has to be 15 days. In case that deviations from such control parameter are observed, then it is necessary to re-determine the Maximum and the Minimum stock.

The application calculates automatically the following volumes:

{Average Daily Sales}: This volume presents per item and store the average daily sales for a recent time period (in days).
{Standard Deviation of Daily Sales}: This volume is the statistical standard deviation of the daily sales for each item and store. This volume is recalculated on a daily basis by the application and, in combination with the Customer Service Level selected, the best security stock is proposed.
{Ordering Point}: This volume is automatically calculated based on the minimum and maximum stock and the Average Daily Sales and constitutes the system's criterion for deciding upon whether to include the item in the list of items to be ordered in the store.
{Average Stock per Item (days)}: Based on the Average Daily Sales in pieces, the average stock is calculated in days, so that it is comparable to the target stock and to produce differences.
{Difference}: This difference regards the deviation between the Average Stock in Days and the Target Stock.
Optimum {Max}: It is the Maximum Stock quantity proposed by the system. The supplier, consulting these quantities, is able to redetermine the Maximum Stock
Optimum {Min}: It is the Minimum Stock quantity proposed by the system. The supplier, consulting these quantities, is able to redetermine the Minimum Stock. This quantity is automatically calculated using the Standard Deviation of Daily Sales and the Customer Service Level
{Max} based on EOQ: This quantity is an alternative recommended calculation of the average quantity based on the formula of the Best Ordering Quantity

The stock replenishment process is an automated process that collects, on a daily basis, the sales data and calculates the stores' replenishment quantities.
The stores' supplier reviews, on a regular basis, the deviations between the target stock and the average stock in days. In case of deviations, the main parameters of maximum and minimum stock are changed.

Promotion activities:
In case of promotion activities (offer, brochure, discount coupon etc.), where sales are increased, the operator activates a change in the main parameters for the time period of the promotion activity and, upon lapse thereof, the application restores the initial values of the parameters.