Replenishment based on minimum inventory
To make sure the inventory level at the customer is sufficient at any time, a VMI supplier can replenish the customer based on the minimum inventory level at the customer's location. You can use this replenishment method in combination with various planning methods.
Parameter setting
To specify this replenishment method, define an appropriate terms and conditions agreement on the Terms and Conditions Line (tctrm1620m000) session's Planning tab.
Use the following settings:
| Responsible for Supply Planning | = | Yes |
| Forecast received from Customer | = | Yes or No |
| Use Min-Max Inventory Levels | = | Minimum Levels or Minimum and Maximum Levels |
| Replenishment Based On | = | Inventory Level |
| Planning Based On | = | Total Forecast, Confirmed Forecast, Confirmed Supply, or Inventory Level |
For further details, refer to To specify the minimum and maximum inventory.
If the Planning Based On field and the Replenishment Based On field both have the value Inventory Level, the replenishment closely follows the planning. All planned orders are transferred to the execution level and executed without further delay. For more information, refer to VMI planning based on inventory levels.
If the Planning Based On field and the Replenishment Based On field have different values, some of the planned orders are not transferred to the execution level. For more information, refer to Replenishment method different from planning method.