Core TSIs : Stock : Stock - Concepts : Replenishment
Replenishment
Replenishment is the re-ordering of products whose stock level is no longer sufficient. As a stock manager, you can assess the stock levels and order stock replenishment, so that adequate stock levels are maintained to meet demand.
Typically, for replenishing stock in your warehouse you must assess the following:
Based on the replenishment window (for example the next 2 weeks) and the delivery time of the product, what do you expect to go into stock (due to existing replenishment suggestions and purchase orders) and
what do you expect to go out of stock (due to the requisitions).
Replenishment of stock items can be done in two ways:
Manually: allows you to specify the quantity of a selected stock item to be replenished. See Replenishing stock from a vendor.
Automatic: allows you to periodically replenish all stock items in a selected distribution point based on the Replenishment window and the minimum replenishment quantity required in the stock. See the information about the Automatic replenishment field in Automatic replenishment fields. If stock positions are reaching the minimum, a replenishment suggestion will automatically be created with a suggested delivery date equal to the system date plus the delivery time of the product.
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If the delivery time of the product is longer than the replenishment window, a replenishment suggestion is created with a suggested purchase date in the past, so that the suggested delivery date lies at the end of the replenishment window.
Therefore, the replenishment window should be longer than the delivery time of the product used for replenishment, because any replenishment suggestions with a suggested purchase date in the past, may lead to the stock replenishment not being executed in time.