Merchandise Replenishment

Description

Merchandise Allocation Training Course

This course provides a comprehensive foundation in replenishment principles and concepts. It explores the role of replenishment within retail inventory management, including planning and ordering strategies, key store replenishment models and how they operate, supply considerations such as lead times and service levels, and the management of inventory challenges like overstocks and clearance stock.

Who Is It Suitable For?

This program is designed for:

• Merchandisers
• Assistant Merchandisers
• Allocators
• Merchandise Planners
• Warehouse Management, including those in returns management
• IT people who build replenishment systems
• Finance and Supply Chain Management people who are involved in aspects of inventory management
• Internal or external Auditors who need to audit inventory management processes

Course Objectives

By the end of this program, learners will be able to;

• Determine how much inventory a store or warehouse needs at any point in time
• Explain how customer service level is taken into account
• Describe best practice replenishment processes
• Be able to determine which replenishment methods are most effective in which situations
• Identify how to deal with overstocks

Detailed Content

Introduction to Replenishment

• Allocation vs. Replenishment
• Replenishment Objectives
• Allocation and Replenishment across the product lifecycle
• Allocation and Replenishment: Long Season
• Allocation and Replenishment: Short Season

Concepts Behind Replenishment Decisions

• Inventory Review and Ordering
  • Order Point Model
  • Time-Based Model
  • Hybrid Approach
• Replenishment Ordering Logic
• Push/Pull Organizational Replenishment Strategies
• Replenishment Base Model
• Re-Order Point
• Rounding Rules

Replenishment Algorithms

• MIN/MAX Replenishment
• SOGO (Sell-One-Get-One) Replenishment
• Fixed Model Stock Method
• Dynamic Model Stock Method
• Replenishment to Plan or Forecast
• Inventory Rationing Approaches
  • Fair Shares
  • Reinforcing Winners
  • Equal Weeks Cover
  • Substitutions and Transfers

Supply and Replenishment Parameters

• Warehouse and DC Replenishment
  • Seasonal Merchandise
  • Demand and Terminal Stock
  • Considering Returns
  • Category management
• Managing Inventory Efficiently
• Weeks of Supply (WOS)
  • Calculating Weeks of Supply
  • Retailer's Lead Time
  • Vendors Lead Time
  • Safety Stock
• Service Levels
  • ABC Analysis
  • Application in Replenishment
  • Safety Stock Implications
  • Calculating Safety Stock
• Stock Optimization
  • Clearance Merchandise and De-Listed Lines
  • How to Determine an Overstock Situation
  • Reducing Overstocks
  • Dealing with Perishables

Each module has its own mastery test and learners that achieve a 70% pass mark and complete the end of class survey will receive a certificate on completion.  

Hours of Study

2 hours

Resources Included

The class includes the following downloadable resources for printing and review:

• Retail Knowledge Bank Merchandise Replenishment links
• Merchandise Replenishment Module Summary

Pre-Requisites Necessary

A basic understanding of key retail processes, such as taught in the Buying and Merchandising Overview module and Merchandise Allocation.

After This Program

The next logical program in developing learners’ knowledge is Merchandise & Assortment Planning.