Replenishment

A3 can calculate replenishment advices for both season and never out of stock styles. The replenishment plan is calculated on the basis of the forecast per style/color/size, necessary service stock, pending purchase/production orders, booked sales, store space (retail) and logistic parameters. This replenishment plan can then be adjusted in A3. Next it can be interfaced to the central ERP software, where it can be transformed to purchase order, production order or stock transfer.

For the core styles a service stock is calculated to cover the required service level. It depends on e.g. lead-time, forecast certainty and desired service level for this product or group of products. Since market demand is a dynamic process, the necessary service stock is calculated dynamically as well. When the demand goes up, the necessary service stock will automatically be increased. When the demand goes down or a product expires, A3 automatically reduces the service stock.