How to manage inventory among several stores?

Hi all! I’m still thinking about doing replenishment. These are the facts: 1)The company has several locations: New York, Washington, Boston and Atlanta. Each location has several stores: NY — 5 stores ( NY1, NY2, NY3…), WA — 4 stores, BO — 6 stores, etc… 2) Each store in each location can order goods directly to the supplier or through the Head office or the main warehouse in the assigned location. 3) If goods have been ordered by each location in the same location, the head office or the main warehouse must add all inventory needs and purchase goods at a suuplier. Once goods arrived, the main warehouse must distribute goods to the concerned store. Questions: - How this scenario can be managed in Nav4 keeping in mind that at each store , several POS are used. - If " Requisition system " is used, how will be the process and the set up? Thank you for helping me to resolve that problem.

Tatiana, There’s an add-on by Lanham Associate called UBP (Usage Based Procurement). Once you have set up each location/store as a separate Navision location (table 14) you can create a Procurement Unit record for each Location/Item. The Procurement Unit will then allow you to determine if the location/item is to be replenished by a vendor or another location. It also creates suggested orders for each location. Let me know if you need info on getting in touch with them. We distribute products internationally, and with several locations setup in our system. UBP (and a few modifications for our own needs) works for us.

Hi Faithie! I dont want to use an add on for that ( unless it is absolutely) so does someone has an idea on how to do that with NAV4 ( without big modifications) ? Thanks

Have you tried setting each store as a location, and using SKUs for setup and then Run MRP to create orders?

Hi David! Yes I have considered using SKU’s and each store as a location in Navision but the fact here is this: - Each store send its needs to the local warehouse which combines all needs from different stores in the area ( ex: New York) and then order goods to a supplier. Once received at that local warehouse, goods must be redistribute to each store with their required quantities. So my problem is to manage: - Inventory locally by each store using replenishment from local warehouse. - Inventory coming from several stores in the same area from the lacal warehouse. - Re-distribute goods to local stores ( how the system knows that it needs to distribute original quantity to the store once goods have been received at the local warehouse??) Is there any suggestion on a process that could be used in Navision without major customizations? Help is really needed here. Ps: Please read carefully the original topic. Thanks

Hi So why do SKU’s not work? You have not said. The three problems you state in reply to David are all in fact handled by SKU’s, however some of the points in your original posting they will not handle as standard. I recommend you look at SKU’s they are your only “standard” solution. You have a NY main warehouse where all the purchasing is done. You then have five stores, NY1 - NY5. NY is set with a replenishment system of purchase. NY1 - NY5 is set with a replenishment system of transfer from NY. Each item is set with each SKU to pick up the correct replenishment system The stores will either hold stock or not, when an order is loaded on the store and the stock does not cover it this creates a transfer order from NY and this in turn if no stock is available at NY creates a PO at NY. If the stores want to they can order direct, but this will be a manual change from what the system wants to do, but when you have a replenishment on the store it will not sugest a transfer from the warehouse (I think). This will mean each store is independent of the main warehouse and not meeting your totalling needs, unless zero stock is held at the “stores”. Having read what you have written I would say SKU’s are you best bet, although if you need specific hierarchy of ordering of location within location within location (counting your head office) you are going to need modifications, and they will in all probability be “big” modificaitons because of where they are - in the replenishment worksheets and what you are trying to do.

Thanks Steven for your reply. OK for the SKU’s but I have other points here: - Due to the fact that, the NY warehouse must add all needs from all stores in that area, purchase the total qty , receive them and then distribute them again to stores who needed them, how can I manage that??? So these are my concerns: - Supply of goods can be done by the local warehouse ( BUT by adding needs from all stores) - Distribution of received goods through local stores - Supply of certain goods can be done by each store directly to the supplier. Any other ideas.

Hi Well if the stores are locations with replenishment systems of transfer the stores local requirements are met by a transfer order, as all the others will, the main warehouse can run the requisition worksheet at the end of the day or beginning of the next to pick up all the days requirements for each store, they will then technically buy for all stores and the transfer orders created act as the mechanism for distributing the goods from the warehouse to the stores. If a local store buys direct it will prevent the requisition going on the main warehouse as long as they actually load a purchase order on the system. Naturally this is only answering your questions. With your familiarity with the site and its needs you know the pitfalls and processing requirements. I suggest you set a system up in the manner described, and then run the processes through, you’ll soon then discover where it does not work for you.

Hi Again Tatiana, I suggest that you just set it up and try it, it really does work as you need. You may not realize fully that you can suggest a replinishment method from a location, and that that requirement will be added to the requirement of the source location.

OK guys! I will run that and I will let you know what’s happen. Thanks for all your ideas.

Hi guys! I am doing some tests and I need your ideas. As NY my main warehouse must replenish several stores and another warehouse MA located in another location ( Boston). How can I set up my SKU for: NY - reordering policy - reordering cycle - reordering point - reorder qty Other stores ( NY1, NY2,…) - reordering policy - reordering cycle - reordering point - reorder qty For NY , the shortest LT is 2 days and the longest is 4 weeks. For stores , the shortest LT is 1 day and the longest is 1 week. How can I use those parameters to make sure that when I run the requisition worksheet , results are not false are all my stores are depending essentially on NY warehouse. Ps: same scenario happens also between different warehouses in the country i.e In Canada, MTL warehouse must transfer goods to Ottawa ans Edmonton warehouses. Thanks

Hi Well the reordering policy and all the other parameters will depend upon what you want to do on an item by item basis. As an example for ONE item its SKU at NY1 could be set with a Fixed Reorder Policy and a reordering point of 50, as the lead time is 2 weeks and we use 25 a week. The reorder cycle could be 4 weeks to take into account orders on the store in buckets this size into the future. The reorder quantity will be 50 to cover the two weeks it takes to get the stock. The replenishment system is then transfer order. At NY the leadtime of the same item is 5 weeks as these are purchased, and hence the replenishment system is Purchase. The combination of the five stores has a usage of 200 a week and it is decided to keep 6 weeks stock on the shelves and therefore the reorder point is 1200, the reordering policy fixed reorder again, the reorder cycle can be a static four weeks as per the stores and the reorder quantity can be 2000 as this is where the price breaks start. ALL of this could be complete rubbish, as it will depend on each item! The lead times of each item to be transferred and purchased will lead to different policies and stock holdings for the same item and different locations. Once all the policies are setup for the requirements of the item (and altered as per the demand pattern changes) then you should get true figures if you are running the worksheet for the correct periods.