How to Streamline Inventory Replenishment in Business Central

Learn how Business Central helps small and midsize businesses automate and optimize inventory replenishment for better stock control and fewer shortages.

Why Inventory Replenishment Matters
Managing inventory levels is critical for distributors, retailers, and manufacturers. Stockouts can lead to lost sales, while excess inventory ties up cash. Business Central offers built-in tools to automate replenishment, helping businesses maintain optimal stock and respond quickly to demand changes.

Understanding Replenishment Features in Business Central
Business Central provides several options for automating inventory replenishment:

• Replenishment Methods: Choose between purchase, transfer, or production orders based on item setup.
• Planning Worksheets: Use these to review suggested replenishment actions, including order quantities and timing.
• Demand Forecasts: Incorporate sales and production forecasts to anticipate future needs.
• Automatic Suggestions: The system can recommend replenishment actions based on real-time inventory, lead times, and safety stock settings.
  
  Setting Up Items for Automated Replenishment
  To enable automated replenishment, configure each item’s planning parameters:
  
  
• Replenishment System: Select purchase, transfer, or production for each item.
• Lead Time Calculation: Enter expected delivery or production times to improve planning accuracy.
• Safety Stock: Set minimum quantities to avoid stockouts.
• Order Modifiers: Define minimum, maximum, and multiple order quantities to match supplier or production constraints.
  
  Running the Planning Worksheet
  Business Central’s Planning Worksheet is a central tool for reviewing and acting on replenishment suggestions:

1. Open the Planning Worksheet from the Inventory or Manufacturing menu.
2. Run the Calculate Plan function to generate suggested orders based on current stock, open sales orders, and forecasts.
3. Review the proposed actions, adjust quantities or dates if needed, and create purchase, transfer, or production orders directly from the worksheet.
   
   Example: Small Distributor Automates Replenishment
   Consider a small distributor selling consumer electronics. By setting up each item with appropriate lead times and safety stock, the business uses the Planning Worksheet weekly. The system suggests purchase orders for fast-moving items and transfer orders for stock held at a secondary warehouse. This approach reduces manual tracking, prevents stockouts, and frees up staff for higher-value tasks.

Next Steps
To get started, review your item setup and planning parameters in Business Central. Try running the Planning Worksheet in a test environment to see how suggestions align with your business needs. For advanced scenarios, consult your Dynatech Support Team or Microsoft Learn documentation for best practices.