> ## Documentation Index > Fetch the complete documentation index at: https://betterdatainc.mintlify.site/llms.txt > Use this file to discover all available pages before exploring further. # Replenishment Planner > How to use forecasts and safety stock for replenishment planning # Replenishment Planner Replenishment planning uses forecasts and safety stock to determine when and how much to order, ensuring optimal inventory levels while minimizing costs. ## Recommended Starting Points by Role ### Planner (Forecasting + Replenishment) **Start here:** 1. **Planning Recommendations** - Review system-generated replenishment recommendations 2. **Forecast Integration** - Understand how forecasts drive replenishment 3. **Safety Stock** - Configure and monitor safety stock levels 4. **Replenishment Execution** - Execute replenishment recommendations **Daily workflow:** * Review replenishment recommendations * Verify forecast alignment * Check safety stock levels * Execute replenishment orders * Monitor replenishment performance ### Operations (Warehouse/Inventory) **Start here:** 1. **Replenishment Status** - Monitor replenishment order status 2. **Receiving** - Receive replenishment shipments 3. **Inventory Levels** - Verify inventory after replenishment **Daily workflow:** * Monitor replenishment order status * Receive replenishment shipments * Verify inventory levels * Report replenishment issues ### Finance (COGS, Holding Cost, Cost-to-Serve) **Start here:** 1. **Replenishment Costs** - Analyze replenishment order costs 2. **Holding Costs** - Monitor inventory holding costs 3. **Replenishment Efficiency** - Review replenishment efficiency metrics **Daily workflow:** * Review replenishment order costs * Monitor holding costs * Analyze replenishment efficiency * Generate cost reports ## How Replenishment Planning Works ### Forecast-Driven Replenishment Replenishment recommendations are based on: 1. **Forecasted Demand**: Expected demand from published forecasts 2. **Current Inventory**: Current on-hand inventory levels 3. **Safety Stock**: Safety stock levels configured in policies 4. **Lead Time**: Expected supplier lead time 5. **Reorder Point**: When to trigger replenishment ### Replenishment Calculation ``` Recommended Order Quantity = Forecasted Demand (over lead time) + Safety Stock - Current Inventory - On-Order Quantity ``` ### Safety Stock Safety stock protects against: * **Demand Variability**: Unexpected demand spikes * **Supply Variability**: Supplier delays * **Forecast Errors**: Forecast inaccuracy **Safety Stock Calculation:** * Based on demand variability * Based on lead time variability * Based on service level targets * Configurable per product/channel ## Step-by-Step: Using Replenishment Planning ### 1. Review Planning Recommendations 1. Navigate to **Plan** → **Planning Recommendations** 2. View recommendations by: * **Product**: Recommendations per product * **Location**: Recommendations per location * **Channel**: Recommendations per channel * **Priority**: High, medium, low priority ### 2. Understand Recommendation Details For each recommendation, review: * **Forecast**: Forecasted demand over lead time * **Current Inventory**: Current on-hand quantity * **Safety Stock**: Configured safety stock level * **On-Order**: Quantity already on order * **Recommended Quantity**: Recommended order quantity * **Reorder Point**: When to trigger order * **Lead Time**: Expected supplier lead time ### 3. Verify Forecast Alignment Verify recommendation aligns with forecasts: * Check forecast scenario used * Review forecast accuracy * Verify events are applied * Confirm forecast is published ### 4. Check Safety Stock Levels Review safety stock configuration: * Verify safety stock levels are appropriate * Check safety stock calculations * Review service level targets * Adjust if needed ### 5. Execute Replenishment 1. Select recommendations to execute 2. Review details 3. Click **Execute** or **Create Purchase Order** 4. System will: * Create purchase order (if applicable) * Update on-order quantities * Update planning status ### 6. Monitor Replenishment Track replenishment: * Monitor purchase order status * Track receiving status * Verify inventory updates * Review replenishment performance ## Understanding Safety Stock ### Safety Stock Configuration Safety stock can be configured: * **Per Product**: Product-specific safety stock * **Per Channel**: Channel-specific safety stock * **Per Location**: Location-specific safety stock * **Global**: Organization-wide defaults ### Safety Stock Calculation Methods **Fixed Safety Stock:** * Manual configuration * Simple and predictable * May not account for variability **Statistical Safety Stock:** * Based on demand variability * Based on lead time variability * Based on service level targets * More accurate but complex ### Service Level Targets Service level targets define: * **Target Fill Rate**: Percentage of demand fulfilled * **Target Stockout Probability**: Maximum stockout probability * **Target Service Level**: Overall service level target **Impact on Safety Stock:** * Higher service level = higher safety stock * Lower service level = lower safety stock * Balance service level with holding costs ## Forecast Integration ### Using Forecasts for Replenishment Forecasts drive replenishment in several ways: 1. **Forecasted Demand**: Expected demand over lead time 2. **Forecast Accuracy**: Confidence in forecast affects safety stock 3. **Forecast Events**: Events affect demand expectations 4. **Forecast Trends**: Trends inform replenishment timing ### Forecast Scenarios Different forecast scenarios can be used: * **Base Scenario**: Standard forecast * **Promotion Scenario**: Forecast with promotions * **Seasonal Scenario**: Forecast with seasonality * **What-If Scenarios**: Explore different assumptions ### Forecast Accuracy Impact Forecast accuracy affects replenishment: * **High Accuracy**: Lower safety stock needed * **Low Accuracy**: Higher safety stock needed * **Bias**: Adjusts replenishment quantities * **Trends**: Informs replenishment timing ## What Success Looks Like ### Planner Success * ✅ Replenishment recommendations align with forecasts * ✅ Safety stock levels appropriate * ✅ Replenishment orders executed promptly * ✅ Stockouts prevented * ✅ Holding costs optimized ### Operations Success * ✅ Replenishment orders received on time * ✅ Inventory levels maintained * ✅ No stockouts from replenishment delays * ✅ Replenishment process efficient ### Finance Success * ✅ Replenishment costs tracked * ✅ Holding costs optimized * ✅ Service levels maintained cost-effectively * ✅ Replenishment efficiency measured ## Common Pitfalls ### 1. Not Using Forecasts **Problem**: Replenishing based on current inventory without considering forecasts. **Solution**: Always use forecasts for replenishment: * Review forecasted demand * Consider forecast accuracy * Apply forecast events * Use published forecasts **How to avoid**: Make forecast review part of replenishment workflow. ### 2. Ignoring Safety Stock **Problem**: Not configuring or monitoring safety stock levels. **Solution**: Properly configure safety stock: * Set appropriate safety stock levels * Consider demand variability * Account for lead time variability * Review and adjust regularly **How to avoid**: Make safety stock configuration part of setup. ### 3. Not Considering Lead Time **Problem**: Replenishing without considering supplier lead time. **Solution**: Always consider lead time: * Use accurate lead time estimates * Account for lead time variability * Plan for lead time in calculations * Monitor lead time performance **How to avoid**: Include lead time in replenishment calculations. ### 4. Not Monitoring Replenishment Performance **Problem**: Executing replenishment but not tracking performance. **Solution**: Monitor replenishment performance: * Track order fulfillment rates * Monitor stockout prevention * Review holding cost impact * Measure service level achievement **How to avoid**: Set up replenishment performance monitoring. ## Troubleshooting ### Replenishment Recommendations Not Showing **Symptoms**: Expected replenishment recommendations don't appear. **Possible causes:** 1. Forecasts not generated or published 2. Safety stock not configured 3. Replenishment policies not configured 4. Inventory above reorder point 5. On-order quantity sufficient **Steps to resolve:** 1. Verify forecasts are generated and published 2. Check safety stock configuration 3. Review replenishment policy configuration 4. Verify inventory levels vs reorder points 5. Check on-order quantities ### Replenishment Quantities Too High/Low **Symptoms**: Recommended replenishment quantities seem incorrect. **Possible causes:** 1. Forecast inaccuracy 2. Safety stock misconfigured 3. Lead time incorrect 4. On-order quantity not accounted for **Steps to resolve:** 1. Review forecast accuracy 2. Check safety stock configuration 3. Verify lead time estimates 4. Check on-order quantities 5. Adjust replenishment parameters ### Safety Stock Not Working **Symptoms**: Safety stock configured but not being used in recommendations. **Possible causes:** 1. Safety stock not properly configured 2. Replenishment policies not using safety stock 3. Safety stock calculation issue 4. Configuration not saved **Steps to resolve:** 1. Verify safety stock configuration 2. Check replenishment policy settings 3. Review safety stock calculations 4. Verify configuration is saved 5. Test with sample products ### Replenishment Orders Not Creating **Symptoms**: Recommendations approved but purchase orders not created. **Possible causes:** 1. Execution process failed 2. Purchase order creation issue 3. Supplier not configured 4. Permissions issue **Steps to resolve:** 1. Check execution status 2. Review error messages 3. Verify supplier configuration 4. Check user permissions 5. Retry execution 6. Contact support if issue persists *** ## Related Pages * [Planning Recommendations](/decide/planning-recommendations) * [Forecasting Overview](/decide/forecasting-overview) * [Forecast Accuracy](/decide/forecast-accuracy) * [ATP Policies](/govern/atp-policies) * [Replenishment Configuration](/govern/replenishment-config) *** ## Permissions & Roles Viewing replenishment recommendations requires standard user permissions. Executing replenishment requires inventory management or purchasing permissions. Configuring safety stock requires tenant admin permissions. Contact your organization administrator for details.