Assignment on Goods Receipt Process

(From Raising PO to Receiving Goods At The Store)

Submitted by: Anisha Kirpalani CPGFR1001

Raising Purchase Order and Approval

A purchase order is a system recorded on paper or electronically where a supplier provides a product to a company in the quantity, size, style or color that it needs. A purchase order is based on the sales volume or orders a company receives from its customers' purchases.

Contents:
The vendors name Order, shipping, and cancel dates A list of the to be ordered and information about those , including description, cost, and the quantity ordered The total cost of the order, including discounts and fees Optionally, terms of payment and payment due date (for tracking purposes) A summary of the purchase order fill status (what has been received and what has not.

Purchase Order Reports - There are various types and templates of Purchase order
reports and documents, including: Purchase Order Detail Report Purchase Order Register Anticipated Deliveries Overdue Shipments Receipts Report Receipts Register Open Purchase Order Open Requisitions Requisition Register Purchase Order History Purchase Order Summary Blanket Purchase Orders Encumbrance

Sample placing of order through a Purchase Order System:

Sample Purchase Order:

Benefits of a Purchase Order:

Provides an organized way to keep track of what you have on order. Easy to get a listing of all orders for a specific vendor. Purchase orders can automatically copy detail lines from a purchase order to a bill when you enter payment for the received.

Receiving Goods at the warehouse from Supplier

When the order placed is received on a particular date from the supplier (usually in a truck/ lorry), the following procedure takes place:

1. 2. 3.

The supply of goods will be accompanied by: Sales invoice of the supplier clearly quoting the reference number of the Order for Supplies (OFS); a copy of the OFS quoted in the sales invoice; a copy of the Transport Permit issued by the Excise department; a copy of the lorry receipt; and details of duty paid for dispatch of goods. In the absence of any of the documents, do not unload the supply. Confirm that the OFS is signed by the Executive Director or the General Manager (Operations). 4. Verify that the manufacturer has raised one sales invoice for each OFS.

5. 6.

7.

8. 9. 10.

11. 12. 13.

14. 15. 16. 17. 18.

19. 20. 21. 22.

23. 24. 25. 26. 27.

Confirm that the rates indicated for the dispatched are the same as in the OFS. No other charge like permit fee, etc shall be allowed. The supply should have been received in the depot before the expiry of the validity of the OFS. In case the validity of the OFS has expired, request the Head Office for extension of validity, synchronise and proceed. If any other condition in the checklist is not satisfied, obtain permission from the Head Office to waive the requirement. Quote permission details in the narration column in the checklist. Prepare a draft Material Inward Slip (MIS) to include all the shown as dispatched in the sales invoice. Print checklist and proceed for unloading. The checklist, recording the time and date of preparation, acts as an unloading slip and forms an important document for verification at a later stage. Hence do not resort to unloading without the checklist. Confirm that the manufacturer has furnished details of excise label numbers of the items on the carton box (as a sticker or a rubber stamp). If the supplier consistently defaults in furnishing these details inform the Head Office and seek instructions. Unload items. Note down the actual items received, their quantity, the number of broken items and their excise label numbers and the number of missing items in the consignment (and if available, their excise label numbers) in the checklist. In case of doubt, and/or for brands that exhibit a substantial transit/storage loss, open the boxes and take delivery. The checklist is to be signed by the person unloading the consignment and the depot manager. Obtain the signature of the transporter (the lorry driver) in the draft checklist as a token of acceptance of the number of broken/missing items. Report any abnormal increase in transit damages to the Head Office. Segregate broken items and separate the neck of these items and store them appropriately for verification. For this purpose, the depot shall have separate drums/containers prominently marked (like Transit Damages 180 ml etc.), where the necks of items are separated and stored. The glass scrap and the neck shall be disposed off as detailed in the chapter on Accounting for transit/storage losses. Reopen the draft MIS. Make corrections to capture details of the actual items received, their quantity and the excise label numbers of broken and missing items In case of imported items directly received, this may be skipped. Though the quantity column in the MIS as seen in the screen displays the total quantity ordered in the OFS, the quantity received in good condition alone is reckoned and the supplier is credited for the good quantity automatically by the system. Convert the draft MIS into a final MIS, print three copies and sign them. Note down the MIS number on the checklist for reference. Print Excise Verification Certificate. Obtain the signature of Excise officials. Despatch the first copy of the MIS to the supplier to the address in the invoice and the third copy to the Head Office. File all documents (generated documents checklist (with corrections), second copy of the MIS and excise verification certificate and documents received copy of OFS, sales invoice, transport permit lorry receipt and duty paid details) in a proper order.

Internal audit guidelines

Verify filing and dispatch of documents as per procedure. Confirm that the prescribed procedure has been followed. All receipts to be supported by OFS (right quantity and validity to be verified). All receipts to be subject to excise verification. Item code of the stock taken should be the same as the item code in the OFS. Rate of the item in the MIS to be in accordance with the rate indicated in the OFS. Quantity taken to stock (good items) to be in accordance with OFS less broken/missing items. Supplier to be credited only for the items received in good condition

Goods Receipt
The goods receipt process for inbound deliveries is an essential part of the supply chain. This process includes the steps after creation of the purchase order: notification, the inbound delivery, subsequent put away of goods, and the goods receipt posting of the ordered goods. The significant advantage of depicting the goods receipt process through the inbound delivery function is that you can execute many processes in advance, even before the actual goods receipt posting takes place. You have all the necessary information beforehand because the supplier notifies you of the inbound delivery ahead of time. The inbound delivery describes exactly which materials or pallets can be received on what date and at what time. The following functions are available with the goods receipt process for inbound deliveries: Transfer order for inbound delivery - Like the outbound delivery, the inbound delivery is a request for putaway that is sent to the warehouse. You can create a transfer order for putaway from an inbound delivery. Batch information - The batch split that is already possible for outbound deliveries is also available for inbound deliveries, since batches are often first identified in the inbound delivery. Inventory management of packaging materials Goods receipt for inbound deliveries Define order confirmation for inbound delivery - You can use this key to configure your settings such that planned inbound deliveries are automatically created through a collective processing run. Inbound delivery monitor Determination of goods receiving point Incompletion log Change documents Document flow for inbound delivery

Process Flow:
An inbound delivery can be created as follows: With reference to a purchase order With collective processing for several purchase orders With reference to a stock transport order With reference to a customer return Depending on your requirements, you can create inbound deliveries automatically using work

lists, or manually. Overviews allow you to monitor the inbound deliveries that were created and activities relating to those deliveries that are due to be carried out. The system carries out the following activities when an inbound delivery is created: Checks the order and materials to make sure an inbound delivery is possible Determines the delivery quantity of an item Calculates the weight and volume of the delivery Calculates work expenditure Assigns a storage location for put away Updates order processing You can subsequently make changes in a delivery in order to report the quantity that was put away or if the delivery situation changes in any way. In addition, you can use the display function to access inbound-delivery information in a delivery.

Inbound Delivery Structure

The inbound delivery is made up of a document header and any number of items. Document Header The general data relevant for the inbound delivery is stored in the document header. This data is valid for the entire document. This data may include: Goods receiving point Scheduling data (goods receipt date or delivery date, for example) Weights and volumes for the entire inbound delivery Vendor number Route Document Items In the items, you find data that applies to one particular item. This data may include: Material number Delivery quantity Plant and storage location specifications Put away date Weights and volumes of the individual item

Control Elements
Specific functions can be defined for each delivery document type. This is done using control elements that are specified in tables. The document types can be tailored to meet different companies needs. One can distinguish between delivery document types according to the following criteria: Which number range does the document number come from for internal and external number assignment? Which partner functions are allowed and which must be entered? Does an order have to be based on a preceding document? Which requirements must items fulfil to be included in the delivery? Should the route be predetermined? Should a check then be carried out to determine whether the new route is permissible? According to which rule should the storage location be determined for an item if a storage location is not specified?

Which output types are allowed for the business transaction and according to which procedure are they proposed?

Executing Batch Splits in Deliveries

Batch split describes the situation when you want to specify quantities from more than one batch for a particular delivery item. The batch split function in the delivery includes a batch selection screen and an availability check. In addition, batch processing is linked to the softwares classification System, enabling you to select batches according to classes and characteristics.

Goods Receipt Note

Goods Receipt Note is a note given by Store department to Accounts/Supplier for Purchase of goods which are accepted after inspection of material. When Material comes to store, only GIN(Goods Inward Note)is been done which is not of commercial use until GRN is made after Inspection of material.

Warehouse Inspection
Following is the procedure and regulations if the goods are kept in a warehouse which is not owned by the company:

Why warehouse oversight is important

Warehouse receipts systems (WRS) involve the issuing of warehouse receipts (WR) by licensed or certified warehouse operators to named depositors (who may be a farmer, farmergroup, processor or trader) as evidence that the depositor has deposited a specified commodity, of stated quantity and quality, at a specified location. The holder of the receipt may pledge it to a lender (with the stored commodity being the collateral for a loan) or transfer it to a buyer (by way of a sale). The warehouse operators or collateral managers do not own the stocks under their control but have legal custody and guarantee delivery against the receipt. They are required and should be able to make good any value lost through theft, fire or other catastrophes. Depositors, bankers and other stakeholders can only enjoy these benefits if the licensed or certified warehouse operators are able to carry out their obligation of delivering the stored commodity on presentation of the WR by a bona fide holder. Non-performance by warehouse operators can lead to losses which can potentially cause default by borrowers (because they are unable to pay) and therefore financial loss to banks. This risk needs to be mitigated by means of effective oversight (or policing) of warehouse operators. The oversight system consists of legal framework (i.e. the laws, regulations and standards) and the institutional arrangements for enforcement.

Enforcement Agencies
The functions of these independent warehouse regulators include the following: To set and ensure compliance which maintain standards for sound warehousing including minimum physical standards to which storage facilities for collateralised stocks should conform; To set and enforce uniform standards and procedures in the handling, storage and receipting of commodities;

To set licensing requirements and enforce the same to ensure that only credible warehouse operators with required storage facilities, well-trained personnel, satisfactory financial capacity, appropriate insurance and bonds in place who are authorised to issue standard warehouse receipts for stored commodities; Ensure sustained compliance with the Act, Regulations and industry standards required to depositors and lenders from loss of value of commodities under storage through intensive and comprehensive on-site and off-site examination procedures and processes; and Assure the integrity of transferable and/or negotiable warehouse receipts thereby making them acceptable as reliable collateral for loans by banks and in commodity trade by robust enforcement of systems for issuing and cancellation of receipts that minimise risk of fraud.

Issues covered by warehouse laws and regulations

The laws and regulations define relationships between the key parties in a warehouse receipt system, in particular between the licensed warehouse operator and depositors as well as other bona fide parties to whom the receipt can be transferred such as lenders and buyers. They encompass the minimum standards that warehouses and Warehouse Operators have to meet to be certified/licensed to store and handle commodities and to issue warehouse receipts, and are therefore intended to provide some level of comfort for the depositors and other parties about the security of their stocks held by the warehouse operator. In addition to defining the powers of the independent regulator, the laws and regulations provide detailed requirements for: Licensing of warehouses and warehouse operators clearly setting out, for the independent regulator, the basis for licensing warehouses and operators as well as for suspending, revoking or restoring the license of an operator. Among the requirements are physical standards that warehouses have to meet and the authorised equipment that a licensed warehouse should have. Licensing of warehouse personnel describing the minimum qualifications and basic training the personnel should have in order to effectively discharge their responsibilities in looking after commodities owned by third parties. Record keeping requirements setting out the minimum records required to ensure complete accountability for the operators. Warehouse Receipts detailing basic descriptions of the receipts (example below) as well as instructions on the handling of warehouse receipts and the related rules of custody, control and access. Warehouse storage operations providing detailed instructions on minimum requirements for cleanliness, stacking, fumigation and other housekeeping activities in the warehouses and powers of the independent regulator to intervene where there is a breach, including sanctions which can be applied. Some of the basic storage management principles which need to be strictly applied include keeping the warehouse dry, clean, cool and secure. It should be recognised that agricultural commodities, in store, are a community of living organisms consisting of the commodity, insects, bacteria and fungi. While the commodity remains in satisfactory storage conditions, most of these living organisms remain

dormant but become active and can lead to quality deterioration if the proper storage management principles are not complied with.

Types of Warehouse Inspections

These include: First Instance Inspections where the warehouse operator, the warehouse, staff and equipment are assessed for suitability for licensing and is conducted prior to issue or renewal of a licence. Routine Inspections are the regular off-site review reports and on-site inspection visits undertaken to examine compliance with all laws, regulations and standards. Appeal Inspection is conducted when an applicant or licensed operator has disputed the outcome of an earlier (first instance or routine) inspection. Officers senior to the one who conducted the disputed inspection are required to conduct appeal inspections. Supervised Inspections are conducted under the supervision of the management board of the regulatory agency or arbitrators or both and are undertaken only when the operator is not satisfied with the results of an appeal inspection. The cost of Appeal and Supervised Inspections borne by the appellants and are often required to be paid in full before the inspection begins. The cost of Supervised Inspections costs may be paid as part of the arbitration costs.

Reviewing Warehouse Management Practices

This part of the inspection verifies the effectiveness of storage management practices in force at a warehouse. It involves checking the following: The intake and issue system at the warehouse, especially where commodities stored are commingled (i.e. whether FIFO, LIFO, etc.). Adequacy of the warehouse space (evidence of overstocking etc). This inspection looks at how the warehouseman enforces the principles of good warehouse management including aeration, heat control, residual spraying, fumigation, etc. Records evidencing any spraying and/or fumigation, including checking for consistency with instructions, e.g. period of exposure for fumigants and frequency of spraying for residual sprays. Use of fumigants is regulated by state authorities and the inspector must verify the registration for the fumigation company hired and also ensure that the chemicals in use are not prohibited. Where possible, the inspector can be present to observe the starting and ending of fumigation, to assess full compliance with all recommended procedures. Reliability of custodial controls regarding keys to the warehouse and security documents, including especially the warehouse receipts.

The Inspection Report

After a review of all the areas identified in Sections 2 and 3 (and guided by some of the deficiencies listed in Appendix 2), the inspector should indicate the overall rating of the warehouse operator and the facility Appendix 1 provides a guide on overall ratings (A to E indicating severity of deficiencies and appropriate remedial actions required). The Warehouse Inspection Report should be completed in triplicate and distributed, as indicated

below after the inspecting official and warehouse operator or his/her senior official have signed the completed form: The original is placed in the warehouse operators contract. A copy is furnished to the warehouse operator at the time of inspection. The third copy is placed in the Inspection Reports file for the information of the Head of the regulatory body. The Head of the regulatory body should regularly review the Inspection Reports and follow up with inspectors to confirm whether recommended remedial actions have been implemented by the specified warehouse operators.

Minimum Requirements for Warehouse Operators

Corporate Requirements
Applicants must be limited liability companies with issued share capital evidenced by the Certificate of Registration Duly registered under the Laws of Tanzania with the purpose of conducting an agricultural commodities warehousing business, among others Memo and Articles of Association + any amendments thereof. Non resident companies may apply through a Tanzanian registered branch or subsidiary The directors and managers are fit and proper persons to conduct the business of agricultural commodity warehousing and the issuance of warehouse receipts Bankers references.

Access to Warehousing Facilities

Ownership of a warehouse(s) evidenced by valid title deeds for the property in the applicants name: or Lease agreements for a period not less than one calendar year where the facilities are to be rented from third parties.

Insurance Requirements
The applicant must obtain insurance cover against fire and allied risks, burglary and employee infidelity (fidelity guarantee) from an insurance company authorized by the appropriate authorities and approved by the oversight unit on the evidence of its financial strength and the credentials of its re-insurers. The insurance policies shall be in the name of the applicant and shall cover the stock and structures. The policies shall grant a first lien to the oversight unit on the proceeds of any claims there under.

In a normal company-owned warehouse, The procedures will normally provide the step by step guidance on how to manage each aspect of warehousing and may cover: Receiving and issuing of supplies; Quality control or verification; Storage of goods; How to control stock movement (stock control); Documentation flow;

How to detect and deal with stock losses; How rejected material will be managed; and How to deal with unwanted material, obsolete and scrap, disposal.

Stock Records - Documentation

Stock Identification Stack Cards, See Samples 1 And 2 Bin Cards Stock Checks Stock Loss Reporting Reporting Of Stock Levels.

Legal Considerations
The common practice in emergencies is to lease or rent, not purchase warehouses. In this situation, there is often a shortage of suitable buildings or locations for warehouse space and this can often cause the costs to increase significantly. Therefore, it is often necessary to utilise temporary warehouse space for as short a time a possible. Care must be taken with the drawing up of the lease agreement with the owner. The following items are basic inclusions and in a lease agreement: The cost for the lease; The duration of the lease agreement; Exit clause: the period of notice required for terminating or extending the lease period. Confirmation of the existence of property insurance, covering third-party, fire, water damage, window breakage, etc; Details of any security arrangements; A detailed inventory of any equipment, fixtures and fitting included with the building and detailed description of their condition; Confirmation of either sole tenancy or details of other tenants; Information about the ground or floor strength per square metre; The weight capacity of any equipment such as forklifts, racks and shelves; In situations where neutrality is important, care must be taken to establish the actual owner of the building, which might be different from the lessor of the building e.g. The military, religious groups or government; Indemnity; and Insurance.

Categorisation of Stock based on Warehouse Inspection

The stock as verified and checked by the warehouse inspection department is classified as: Approved stock This stock is usable Rejected stock - Unusable Shortage stock Unusable stock Excess stock Can be referred to as consignment stock. If the merchandiser and the vendor agree, a new PO maybe made for the excess stock and treated as goods inward and approved stock.

Bar-coding
A barcode can be described as an "optical Morse code". Series of black bars and white space of varying widths are printed on labels to uniquely identify items. The barcode labels are read with a scanner, which measures reflected light and interprets the code into numbers and letters that are passed on to a computer.

Benefits of Bar-coding:
Barcode data collection systems provide enormous benefits for just about any business. With a barcode data collection solution, capturing data is faster and more accurate, costs are lower, mistakes are minimized, and managing inventory is much easier. The following are some of the benefits of barcode data entry: Fast and Reliable Data Collection: Faster Data Entry: A barcode scanner typically can record data five to seven time as fast as a skilled typist. Better Accuracy: Keyboard data entry creates an average of one error in 300 keystrokes. Barcode data entry has an error rate of about 1 in 3 million. Reduced Labor Costs: This is the most obvious benefit of barcode data collection. In many cases, this cost savings pays for the entire data-collection system. Do not put all of your attention on this benefit, however. Even though this is the most apparent benefit, it is often overshadowed by even greater savings from other areas. Reduced Revenue Losses Resulting from Data Collection Errors: This benefit often surpasses the savings in labor costs. You know that if you make a significant error on an invoice in the customer's favor, you will never hear about it again. However, if the error is in your favor, you will hear about it immediately. In most companies, it does not take many errors to amount to a great deal of lost revenue. Necessary Inventory Levels: Using barcodes are one of the best ways to reduce inventory levels and save on capital costs. Keeping a tight handle on inventory can save significant amounts of money. Improved Management and Better Decision Making: Although hard to measure, this is an important benefit. In many cases, improved management due to automated data collection technology could be the best benefit of a barcode system. A barcode system can easily gather information that would be difficult or impossible to gather in other ways. This allows managers to make fully informed decisions that can affect the direction of a department or company. Faster Access to Information: This benefit goes hand in hand with better decision-making. With better information, you can gain opportunities and get the jump on the competition.

Types of Data-Collection Systems:

Barcode data-collection systems fall into three basic types: interactive, batch, and hybrid. An interactive system consists of one or more portables connected in real time to a computer. In these systems, the central computer manages data collection and verification as the user enters data.

A batch system uses one or more portables to gather data that is stored for later input to a computer. This is the most common and most economical portable system. Batch systems can do only limited validity checking. A hybrid system is a combination of the two.

Barcode systems require three elements:

Origin: You must have a source of barcodes. These can be preprinted or printed on demand. Reader: You must have a reader to read the barcodes into the computer. The reader includes and input device to scan the barcode, a decoder to convert the symbology to ASCII text, and a cable to connect the device to your computer. Computer system: You must have a system to process the barcode input. These can be single-user, multi-user, or network systems.

Legal Considerations
Including UPC barcodes on products is not a legal requirement. However, most retailers around the world have adopted the GS1 system (UPC/EAN) for item identification. Most major retailers may request their suppliers to obtain their own prefix and there are not any retailers who endorse this practice. In fact, Wal-Mart has posted the following statement on their website due to the problems caused by the confusion: "Please enclose in your proposal packet a copy of your UCC (GS1) membership letter reporting your firm's actual number. You must be registered directly with the UCC (GS1) and not through a third party."

Important Things to Consider

If your company intends to someday supply product to medium and large retailers, your company must have its own unique Company Prefix. There are other types of barcodes and EDI (Electronic Data Interchange) transactions which include this unique company identifier. The barcode example below illustrates a common barcode used on shipping labels, and the Company Prefix must be unique. Is the barcode image file you receive a vector based image made to the requirements of your packaging? The GS1 US recommends that original UPC barcode digital files be created based on resolution and packaging requirements. Depending on the printing process and dimensional requirements, UPC barcode can vary in size. Most of these resellers simply provide a low resolution jpg or gif file, which is not acceptable for proper reproduction. If a barcode can not be scanned, it is worthless and the money you might have saved was wasted. There are some resellers which do provide physical company addresses and offer actual certificates illustrating the unique UPC number assignment. One recommendation is to call the company during business hours to verify that they are indeed a legitimate business.

Bin Management
The Warehouse Management function is an extension of the Inventory Management and Inventory Replenishment modules, providing advanced features, including bin tracking, three-step inventory transfers, and both wave and zone picking.

Bins are used for much more than identifying inventory locations. Bins are embedded to manage stock movement and inventory transactions such as receiving, picking, physical inventory counting, and even manufacturing material issues and finished goods processing. Random, fixed, temporary, and staging bins provide ample flexibility for virtually any size company, regardless of warehouse configuration. It is not efficient to pick a single order at a time in larger warehouse environments. Pickers would be running up and down aisles all day just to pick a few orders. Consequently, distributors and manufacturers with larger warehouses and more sophisticated distribution centers typically use zone or wave picking methods, which allow pickers to concentrate on items within a particular area of the warehouse. These picking methods minimize employee movement while dramatically increasing the number of orders that can be picked during each shift. Bins can be arranged using a single precedence or with separate precedence for distribution and manufacturing.

Advantages of Bin Management

Bins are built into related activities to manage stock movement and inventory transactions. Specify volume, weight, and count cycle for bins. Define preferred bins for specific items. Use fixed bins for items that are always stored in a specific bin location. Use random bins for items that may be stocked in various bin locations within the warehouse. Staging bins can be used to temporarily hold items that decrease inventory but are not used in transactions. A staging bin can contain any item and multiple items simultaneously. Items in staging bins are considered on-hand for valuation but are not available for fulfillment. Any bin type can be defined as a temporary bin, which is automatically deleted when quantities are depleted. Bins are assigned to warehouse locations and zones within the warehouse A bin can be locked down during put-away or picking. Bins can be flagged to exclude quantities from available on hand inventories. This is useful when receiving products for inspection or quarantine. An unlimited number of bins can be defined per warehouse. Inquiries and reports provide audit trails to view inventory transactions from bin to bin location. Pick sheets can notify warehouse personnel to empty bins during picking or to empty random bins first. Bins are integrated with purchase order receiving; picking, packing, and shipping; physical inventory counts; customer returns processing; and other inventory processes, such as inventory transfers and manufacturing.

Bin Management Program

The Bin Management Program displays the Bin records for the selected Inventory Location. Bin records are used to track the physical locations or bins in which an item exists in a specific inventory location or warehouse. Multiple bins can exist for an item in a single warehouse location as long as a unique bin is used for each location/item/bin combination. Each Bin record stores the quantity of the item that is located in the bin (the bin quantity), the quantity of the bin that is committed to printed shop order or sales order lines (the committed

quantity), and the quantity in the bin that is available or free (the free quantity). Bin records also contain other fields that are used by the Count Processing and other applications in the system. Bin records are used by many applications in the system, including picking, invoicing, and receiving. The Bin System is described in more detail in the Overview section of this document. The Bin Management Program can be used to View the Bins and Bin details for a specific warehouse location. Transfer bin quantities between different bins in the same warehouse. Assign a new default bin to an inventory item as it is being transferred. As each Bin transfer is processed in the Bin Management program, the operator has the option of making the new bin for the item the default bin for the item. If this option is selected, the system transfers the selected quantity to the selected bin and it also updates the default bin for the item that is stored in the Inventory Master file to the destination bin. This causes the system to automatically use the bin when the item is received in the future. View the open Pick records for the Bin. Pick records are used to reserve Bin quantities. Pick records are created when sales order picklists and shop order pull tickets are generated. The committed quantity for each bin should normally agree with the open pick records for the bin.

Store Indent
Factors affecting replenishment in a store:
Type of merchandise Type of store Storage capacity of the store Lead times for supply of goods Rate of sales Relative stock positions across the chain Planned marketing activity Ensuing events like seasonality Beginning, Mid or end of season

Calculating Quantity to be replenished:

Pending indents - Reduce quantity Goods in transit - Reduce quantity Customer orders - Increase quantity Promotion effect - Reduce quantity (for trailing period) Promotion planned - Increase quantity (for future period) Store indents - Increase / Decrease quantity (store managers discretionary order changes or feedback)

Commercial Implications on Replenishment

Some of the commercials affecting replenishments: Invoicing Credit hold and exposure Terms on contract Refunds Charge-backs Pricing

Margins Duties

Costs: transport, handling