Replenishment

In Odoo, stock can be replenished one of three ways: reordering rules, the make to order (MTO) route, or using the master production schedule (MPS).

Each replenishment mechanism triggers the creation or suggestion of a purchase order (PO) or manufacturing order (MO), with the best choice depending on the business process.

:::::: cards ::: Reordering rules

Automatically suggest or generate POs or MOs when stock falls below a minimum level. :::

::: MTO

Automatically generate POs or MOs when sales orders are confirmed. :::

::: MPS

Manage long-term replenishment based on inputted sales forecasts, via a dashboard. ::: ::::::

Replenishment strategies

Replenishment report and reordering rules

Reordering rules are rules that can be set up to maintain a minimum stock level. They are often configured to support manufacturing or sales requirements. When a product's stock falls at or below the minimum level, Odoo generates (or suggests) a purchase or manufacturing order to replenish stock to the maximum level.

When using automatic reordering rules, Odoo generates a new order. When using manual, Odoo suggests orders on the replenishment report. For detailed guidance, refer to the replenishment report and reordering rules .

Key points include:

• Automatic reordering rules : Automatically create POs (Purchase Orders) or MOs (Manufacturing Orders) when stock falls below the minimum level. While this is convenient, it is less flexible.
• Manual reordering rules : Generate suggestions in the replenishment report for user review, allowing adjustments and batch orders while meeting deadlines.
• Just-in-time logic : A strategy to replenish only what is needed to prevent overstocking.

Make to order

An MTO (Make to Oder) strategy means that procurement or production is triggered only after a sales order has been confirmed. This strategy is recommended when products are customizable, demand is unpredictable, there is limited storage capacity, and when products are high in value and low in demand. In such cases, it does not make sense to keep on-hand inventory.

Unlike products replenished using reordering rules, Odoo automatically links the sales order to the PO (Purchase Order) or MO (Manufacturing Order) generated by the MTO (Make to Oder) route.

Another difference between reordering rules and MTO (Make to Oder) is, with MTO (Make to Oder), Odoo generates a draft PO (Purchase Order) or MO (Manufacturing Order) immediately after the SO (Sales Order) is confirmed. With reordering rules, Odoo generates a draft PO (Purchase Order) or MO (Manufacturing Order) when the product's forecasted stock falls below the set minimum quantity.

In addition, Odoo automatically adds quantities to the PO (Purchase Order) or MO (Manufacturing Order) as the forecast changes, so long as the PO (Purchase Order) or MO (Manufacturing Order) is not confirmed.

The MTO (Make to Oder) route is the best replenishment strategy for products that are customized, and/or for products that have no stock kept on-hand.

Master production schedule

The MPS (Master Production Schedule) is a dashboard where products and their forecasted quantities are entered. Based on confirmed manufacturing and purchase orders, the dashboard recommends amounts to order or produce.

This a useful manual tool for keeping track of quantities. The MPS (Master Production Schedule) should absolutely not be used alongside reordering rules, as the automated workflow disrupts its manual replenishment method.

::: replenishment/mto replenishment/reordering_rules replenishment/report replenishment/lead_times replenishment/resupply_warehouses :::