Understanding Replenishment for Vendor Managed Inventory Concept

1. Understanding Replenishment for Vendor Managed InventoryConcept

2. Understanding Replenishment for Vendor Managed Inventory

3. Understanding Replenishment for Vendor Managed Inventory Step 1 This diagram illustrates the VMI Replenishment process. Use the following pages to replenish VMI: • Calculate VMI Replenishment • Process VMI Replenishment • VMI Replenishment Review

4. Understanding Replenishment for Vendor Managed Inventory Step 2 Use the Calculate VMI Replenishment page to calculate VMI replenishment parameters for a VMI business unit.

5. Understanding Replenishment for Vendor Managed Inventory Step 3 Use the Process VMI Replenishment page to create and process VMI replenishment requests for a VMI business unit.

6. Understanding Replenishment for Vendor Managed Inventory Step 4 The Replenishment Option list includes three options:  • Select Create Replenishment Requests to create suggested replenishment requests.  • Select Create and Process Requests to create suggested replenishment requests and immediately pass the sales orders to PeopleSoft Order Management and the material stock requests to PeopleSoft Inventory.  • Select Process Reviewed Requests to pass reviewed sales orders to  PeopleSoft Order Management and the material stock requests to PeopleSoft Inventory.

7. Understanding Replenishment for Vendor Managed Inventory Step 5 The VMI replenishment process creates a sales order in the order management business unit if the item is not consigned. The non-consigned item sales order has a source code of VMI. When the sales order is shipped, the VMI customer is billed for the item.

8. Understanding Replenishment for Vendor Managed Inventory Step 6 The replenishment process creates an interunit MSR in the inventory business unit if the item is consigned. When the interunit MSR is shipped, the VMI business unit is not billed for the items.

9. Understanding Replenishment for Vendor Managed Inventory Step 7 Use the VMI Replenishment Review page to review and delete VMI replenishment requests for a VMI business unit.

10. Understanding Replenishment for Vendor Managed Inventory Step 8 VMI inventory is on-hand at your customer's location. You and your customer can communicate inventory levels and inventory movement by using enterprise integration point (EIP) messages. Four EIPs support VMI: VMI On Hand Quantity, VMI Inventory Adjustment, VMI Interunit Receipt, and VMI Expected Receipt. Use the following pages to process EIP messages: VMI Quantity On Hand, Quantity Adjustment, and InterUnit Receiving.

11. Understanding Replenishment for Vendor Managed Inventory Step 9 Use the VMI Quantity On Hand page to process the VMI on hand quantity EIP. This process retrieves third-party data from the transaction logs and posts the data into the inventory application tables. This data includes the current quantity on hand for stock located at a customer site.

12. Understanding Replenishment for Vendor Managed Inventory Step 10 Use the Quantity Adjustment page to process the VMI inventory adjustment EIP. Enter quantity adjustments to VMI stock manually or by using an electronic data collection (EDC) device.

13. Understanding Replenishment for Vendor Managed Inventory Step 11 Use the InterUnit Receiving page to process the VMI interunit receipt EIP. Enter interunit receipts for VMI stock manually or by using an EDC device.

14. Understanding Replenishment for Vendor Managed Inventory Step 12 When sending outbound messages, the VMI Expected Receipt EIP is used to notify customers of shipments. Go to the Publish Outbound Message page.

15. Understanding Replenishment for Vendor Managed Inventory Step 13 Use the Publish Outbound Message page to enter the selection criteria to create the VMI expected receipt message.

16. Understanding Replenishment for Vendor Managed Inventory Step 14 You have successfully reviewed the steps for performing managed inventory transactions. End of Procedure.