The goal of the Replenishment for BOM and Components functionality is to provide a solution to calculate demand for BOM (bill of material) items and then break down the demand to linked components which are purchased and transferred.
This scenario is common in hospitality where recipe or BOM items are sold and there is a need to purchase the Ingredient or Component items to cook, bake, or produce the sold items. This process applies to all item types that use the Assembly BOM concept.
Note: The workflows below are described with hospitality items and terminology, but are not limited to this industry.
Supported workflows and scenarios:
- Make to Order
- Make to Stock
- Produce in stores
- Produce in warehouse
- Plan driven with weekly or daily Menu Planner
Component / Ingredient centric:
- Stock driven replenishment
- Sales driven replenishment
Note: The Replenishment functionality might support more use cases than the ones mentioned above. LS Retail officially supports the listed use cases only.
BOM / Recipe centric scenarios
These scenarios make use of the Replenishment Template Types BOM and Component. BOM templates and Component templates can be linked, and one BOM template can be linked to multiple Component templates. The purpose of the BOM Replenishment Journal is to calculate the demand for the sold BOM items. You can adjust the calculated demand and proposed quantity in the Replenishment Journal Lines. In a second step, the Component Replenishment Journals are calculated from the BOM Replenishment Journal. The quantity from the BOM Journal Lines is used to calculate the component quantities by using the BOM Component definition.
Multiple Component Replenishment Journals can be specified to separate component purchases or transfers by vendors, item categories, retail product groups, and so on.
The Purchase Orders and Transfer Orders are created from the Component Replenishment Journals.
Make to Order
This process is used when BOM items that are produced on the fly are sold. A typical use case is burgers in quick-service restaurants (QSR).
For more information, refer to Make to Order.
Make to Stock
This process is used when BOM items that are produced in advance are sold. A typical example is cakes that are produced before they are sold. We differentiate between two sub-processes, depending on the place of the production. The item can be produced in the warehouse and then shipped to the stores, or the components are shipped to the store where the item is then produced.
For more information, refer to Make to Stock.
Plan driven with Weekly and Daily Menu Planner
This process is used when we plan the sales of menu items that have to be produced with the Weekly and Daily Menu Planner. A typical use case is catering, event business, or canteens where the demand of meals is planned upfront with the Menu Planner. The registered quantities per meal are transformed into a Planned Sales Demand that is used in the Replenishment Journal's calculation.
To accomplish this, a Replen. Planned Event has to be created and linked to a Menu Planner. When the link is established, a Menu Planner can create Planned Sales Demand lines which will result in future demand that will trigger Purchase Order and Transfer Order proposals in the Replenishment Journal.
For more information, refer to Plan driven with Weekly and Daily Menu Planner.
Component / Ingredient centric scenarios
These scenarios make use of the Template Type Standard and are used to replenish component items without calculating the demand via the BOM Replenishment Journals.
There are two approaches:
- Stock level based
- Sales (consumption) based.
Stock level based
This process replenishes component items based on stock level, using the Replen. Calculation Type of Stock Levels. When the inventory quantity of a component falls below the Reorder Point, a Purchase or Transfer Order proposal will be calculated in the Replenishment Journals.
For more information, refer to Stock level based.
Sales (consumption) based
This process replenishes component items based on historical sales (consumption), using the Replen. Calculation Type of Average Usage. A component is never sold but it is possible to track its consumption over time, similar to the sales history of a generic item. Based on the historical consumption, a forecast can be calculated and used to predict future demand.
For more information, refer to Sales (consumption) based.
See also