Sources of Replenishment

Oracle Inventory automatically generates external requisitions, internal requisitions, or move orders to replenish inventory levels using the orders suggested by min-max planning, reorder point planning, kanban planning, and replenishment counting. You determine the replenishment source by defining item sourcing rules at the item-subinventory, subinventory, item, or organization levels.

External requisitions request stock from an outside supplier. Internal requisitions request stock from another inventory organization. Move orders request stock from another subinventory within the same organization.

All items, subinventories, and organizations can have item sourcing information specified for them. At each level, you can choose whether items are replenished from another inventory organization or subinventory, or purchased from a supplier. In case of a conflict between the levels, Oracle Inventory uses the following order of precedence:

If you specify an item to be replenished from inventory, you must specify a source organization (source subinventory is optional). When an order is placed for this item, Oracle Inventory creates an internal requisition for the item from the source location. This is true when using organization or subinventory level min-max planning, replenishment counting, reorder point planning, and kanban planning.

If the item source is a supplier, Oracle Inventory creates a purchase requisition to order the items from an outside supplier when reorder is necessary. This is true when using organization or subinventory level min-max planning, replenishment counting, reorder point planning, and kanban planning.

If an item source is subinventory, Oracle Inventory creates a pre-approved replenishment move order to replenish supply when reorder is necessary. This is true when using subinventory level min-max planning, replenishment counting, and kanban planning. An item source of subinventory should only be used with subinventory level inventory replenishment.