Retail advanced Inventory plan (AIP) is a suite the modules that room designed to regulate the it is provided chain demands of large retailers. This supply chain needs variety from communication with their providers through miscellaneous layers that warehouses down to individual stores and e-commerce sites. That couples time-phased replenishment and also allocation algorithms to produce an actionable receipt plan over time. This is based on demand forecasts, replenishment parameters, and also inventory availability at the countless supply points within the supply chain.

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AIP takes its place as among several incorporated applications in ~ the sleeve Suite. The suite permits a retailer to regulate its it is provided chain from demand forecasting v to the generation the orders, which have the right to then be common with cooperation planning partners.

Figure 2-1 AIP mechanism in the retail Suite


The larger procedure across the retail Suites bring away the following form: Retail demand Forecasting (RDF) offers a estimate of consumer demand. This is made available to AIP.

The AIP batch operation produces an plot receipt arrangement using replenishment parameters preserved inside AIP. Hierarchy and also Inventory data is noted by a merchandising system such as RMS.

The receipt plan is then sent out to the Order monitoring module within AIP whereby those orders that should be actioned room formally prepared for execution. This consists of the assignment the an bespeak number.

Order administration then submits the proper orders come the merchandising mechanism where acquisition orders and also transfers are connected to other systems. This orders are went back to AIP in succeeding batch runs together orders because that on-orders.

Sales forecasts and order plans can then be mutual at the proper level with suppliers by utilizing a CPFR product so the trading partners have the right to prepare for the forthcoming orders.

Replenishment Subprocesses

At the core of the AIP batch procedure are five replenishment subprocesses. This subprocesses do calculations ~ above a collection of loaded static and also dynamic data utilizing replenishment parameters to create a replenishment receipt arrangement for all areas in the it is provided chain. This usability differs from many existing replenishment solutions due to the fact that it yields an actionable plan across time. This gives retailers the capability to job their demand at all levels the the supply chain and to share this projections with their providers whenever it is appropriate.

Key to developing an plot receipt setup is the consists of well-known inventory constraints. This is achieved by performing the five replenishment subprocesses across all areas in the adhering to order:

The Replenishment procedure generates one Unconstrained Receipt arrangement for the component of the to plan horizon over which constraints space subsequently applied. This component of the to plan horizon is dubbed the addressed Period.

The Shortfall Reconciliation process applies inventory constraints over the fixed period, modifying the receipt plan where necessary.

The Substitution procedure attempts to use product substitutes to satisfy any shortage produced by Shortfall Reconciliation in ~ the solved period.

The Stockless procedure increases orders in ~ the fixed duration where vital to ensure the no warehouse is left through inventory of a stockless product and contractual responsibilities to order particular quantities of products from vendors are honored.

Finally, the procedures are repeated for a 2nd time because that the remaining part of the plan Horizon after the resolved period.

Order Management

The resulting receipt setup is climate exported come the Order administration module where Order Numbers are produced and the orders exit to external systems. Complying with formal order generation, these amounts are fed back into the system and also the arrangement is updated to account for these orders as meant receipts. This kind of planning allows the retailer to identify potential supply chain problems before they arise so the stock-outs and excess inventory difficulties can be prevented or reduced.

The volume that the receipt plan produced through AIP is an extremely large, for this reason a minimum that user joining is desired, however it must likewise be feasible for super-users to adjust parameters and also to check out the effects of their changes quickly in order to stop persistent costly supply chain problems. The device intends the these parameters are regulated principally through exception. Regulate by exception method that not every SKU or warehouse is the review or updated on a continuous basis. Items v exceptions—alerts— are reviewed and updated if necessary.

The user interacts v the AIP mechanism through a number of modules:

Store Replenishment planning (SRP) workbooks are offered to preserve the replenishment attributes for stores. This workbooks allow the user to analyze mechanism output and also perform What-if style analysis when replenishment parameters space changed.

Warehouse Replenishment plan (WRP) workbooks are offered to keep the replenishment qualities for warehouses. This workbooks permit the user to analyze device output and perform What-if style analysis when replenishment parameters space changed.

Data management (DM) is offered to preserve the supply chain and also network flow information. This consists of sourcing links and also lead-times.

Order administration (OM) provides the user visibility of order forecasts and previously-executed orders. It permits a variety of changes to previously executed, yet not yet received, acquisition orders.

Architectural Notes

The batch replenishment and workbook modules within the AIP equipment run from a usual platform, which is dubbed the sleeve Predictive application Server (RPAS). RPAS is a structure that includes features, together as:

Multidimensional databases

Product, time, and business location hierarchies

Aggregation and also spreading that data

Workbooks and also views because that displaying and also manipulating forecast data

Wizards because that creating and also formatting workbooks and views

Menus, rapid menus, and toolbars because that working v forecast and also sales data

Exception management and user-friendly alerts

See the sleeve Predictive applications Server User guide for the RPAS Fusion customer for more details.

RPAS User interface Basics

This section explains the basics the the RPAS user interface.


A workbook is an easily viewed, quickly manipulated multidimensional framework that is used to perform details business functions, such as generating replenishment receipt plans and also reviewing parameters. To present data, a workbook have the right to contain any variety of multidimensional spreadsheets, called views, and also graphical charts. These components work together to facilitate viewing and analysis of organization functions.

Data in a workbook have the right to be regarded at lower levels of detail or higher levels that aggregation. Different views are acquired by an altering the path, or level the data rollup, or both. Data in a workbook can likewise be manipulated at any hierarchical level. If you modify data at an aggregate level, these alters are spread down come the reduced levels. The reverse is also true— if you modify data in ~ a lower level in the hierarchy, the aggregates that the data reflect those changes.


Views space multidimensional spreadsheets the are provided to display workbook-specific information. Workbooks can incorporate one or countless views. Views can current data in the kind of number in a grid, or this numeric data worths can conveniently be converted to a graphical chart.

You can display screen the information in a view in a variety of formats, usually by rotating, pivoting, and transforming the data rollup. These procedures are described in information in the retail Predictive applications Server Online help for the RPAS combination Client, i m sorry is easily accessible from the assist menus in SRP/WRP or the accompanying print version the the retail Predictive applications Server User overview for the RPAS combination Client. You have the right to easily adjust the presentation style of data in a view. As soon as data sets are relocated around, their positions change. Data deserve to be perceived at a very high level the detail, or data values have the right to be quickly aggregated and viewed at review levels. Furthermore, views and also parts of views can easily be adjusted into charts, i m sorry facilitate the graphical viewing and evaluation of data.


When new workbooks space created, aid in defining the nature that the information shown is detailed in the type of wizards. Wizards space pre-defined measures that go the user with the data selections necessary to use/build each workbook. Wizards room also obtainable to note the user because that information concerning the an interpretation of alerts, and user account management.

AIP procedure Overview

This ar describes:

How SRP and WRP Fit right into the AIP Product

The SRP workbooks permit you to connect with the AIP replenishment mechanism from a keep perspective and also the WRP workbooks enable you to connect from a warehouse perspective. No SRP no one WRP exist in its own right as a batch process.

Instead, the actual procedure of creating a save or warehouse replenishment plan is achieved by the running of the batch Replenishment steps.

These actions are process oriented, fairly than being ar specific. Instead of each step being concentrated on just stores or just warehouses, every one is performed because that all ideal nodes in the network.

When strung together, this batch steps produce a Constrained Receipt setup for all areas in the network. SRP offers a store-oriented system for connecting with the receipt plan while WRP offers a warehouse-oriented system for communicating with the receipt plan.

Replenishment System process Steps

AIP support a simple business process for creating and also releasing replenishment plans for all locations in the network. This procedure combines batch and also interactive online activities as displayed in figure 2-2.

Figure 2-2 process Workflow


Step 1 - Load and Maintain Data

To generate a constrained replenishment plan for any type of location, 4 main types of data must very first be loaded into the RPAS database:

Basic hierarchy and also attribute information

Forecast store Sales

Inventory information, consisting of on-hand and also on-order details that has previously been developed by AIP

Supply chain an interpretation data including release schedules, and also sourcing links

Step 2 - perform Replenishment (In the solved Period)

Replenishment is run for the solved period. The fixed period refers come the an initial part the the to plan Horizon in i m sorry inventory limitations apply. Replenishment is a destination-centric process. That addresses every node in the it is provided chain, beginning with stores and progressing top top warehouses, identify the unconstrained orders compelled within the fixed period for every SKU Pack/destination combination.

The orders because that each SKU Pack/destination combination are calculated over the fixed period using the recent inventory position, on-orders and also in-transit information. Projection sales represent demand on a store. For a warehouse however, the demand stream is determined by aggregating the order of the stores served by the warehouse. These keep orders are the ones produced by this procedure step. This means that replenishment because that stores is performed prior to replenishment because that warehouses.

For every destination, the easily accessible information is provided to make projections that future list positions for each distribution opportunity. If the forecast for a distribution opportunity falls listed below boundaries dictated through the replenishment method, then an stimulate is required. Every order is then subject to rounding.

The result orders represent the Unconstrained Receipt plan within the resolved period.

Step 3 - carry out Shortfall Reconciliation (In the fixed Period)

Shortfall reconciliation is source-centric and therefore functions from the optimal to the bottom v the nodes in the supply chain network. The inventory accessible at the source is evaluated because that each reconciliation duration and is distributed against the need of destinations the ship with the specific period. Where a destination has need of a relational occasion SKU (promotion v variant, instead of SKU) the connected SKU perform is likewise assessed and substituted wherein needed.

The goal of the procedure is to satisfy each destinations require in the most equitable way, follow to priority. The Watershed algorithm is used to a configured priority matrix—which defines a SKU"s priority in ~ a store—in an attempt to provide destinations that the very same priority an equal chance of conference the demand placed ~ above them.

Step 4 - do Substitution (In the fixed Period)

When a shortage occurs at a store, the unmet demand may impact similar SKUs by increasing demand as shoppers select a different easily accessible flavor, color/style, or correlated product. The SKU influence analysis is performed external of AIP and also a resulting demand Transfer percent (DTP) is given to AIP. The substitution procedure identifies the times when the save inventory falls quick of demand and uses the DTP to assess the increased demand on instead of SKUs against the perform available. Wherein there is not sufficient excess in the store an attempt is made to send more. The very same Watershed algorithm supplied in shortfall reconciliation is provided to share added inventory among store destinations enduring a shortage.

Step 5 - carry out Stockless (For the solved Period)

Stockless functionality identifies those cases where over there is excess stock at a source that demands to be consumed by the destinations served by the source. Stockless is a source-centric procedure and functions for vendors with Supplier purchase Quantity (SPQ) and also warehouses through stockless products.

Stockless identifies excess stock at sources. Excess share is identified as any kind of remaining inventory of a stockless product in ~ a warehouse not consumed by demand, or any residual inventory in ~ a vendor that the retailer is contractually committed to the order.

Stockless do the efforts to rise orders indigenous the resource to absorb the excess. The priority matrix, watershed and fairshare algorithms are supplied to ensure that destinations are fairly dealt with.

The resulting orders stand for the last Constrained Receipt arrangement for the solved period. The orders in the fixed duration are not readjusted any more within the existing batch run.

Step 6 - carry out Replenishment (After the solved Period)

A second run the Replenishment is performed however this time concentrating on the remaining planning horizon after ~ the fixed period. This replenishment operation is based upon the inventory place resulting indigenous fixed duration reconciliation, substitution, and also stockless pushing.

For those SKUs suffering a significant supply chain event or space stockless Shortfall Reconciliation and also Stockless processing is additionally performed in the article fixed period. The events triggering article fixed duration reconciliation because that a SKU are:

Stockless at a Source

Temporarily Un-orderable

Promotion with Variant Event

Replacement SKU Event

Pack readjust Event

Discontinuation date collection of a SKU"s bespeak pack

Stop receiving date set of a SKU"s notified pack

The final resulting receipt plans from all fixed duration and write-up fixed period processing are referred to as the Constrained Receipt arrangement for the plan horizon. It is this receipt setup that can be regarded in the SRP and also WRP report and examining activities.

Step 7 - export Orders to Order administration (After the addressed Period)

Once a Constrained Receipt arrangement has been produced, a subset of the assignment is then sent to the platform for handling by bespeak Management. This subset contains the following:

All into store and into warehouse assignment sourced from vendors (Purchase Orders) throughout the whole planning horizon.

All right into warehouse order sourced from other warehouses (Transfers) across the entire planning horizon.

All right into store orders sourced native warehouses (Transfers) v release days that should be shipped today.

Step 8 - Order management Execution the Orders

Of the subset of order exported to Order Management, those v a release day of today room given appropriate orders numbers. The order Numbers are allotted based ~ above an implementation-time mask that determines just how orders (both Transfers and Purchase Orders) need to be grouped together.

Those order that have been allotted numbers space then executed (released) come the merchandising device for subsequent communication to various other systems consisting of EDI.

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The Order monitoring interface gives the user access to those orders the have already been released. Those acquisition orders that have actually not to be received might be updated. Those projection Purchase assignment that have actually not yet been released because they delivery at a later day may be executed early.