What is Continuous Inventory?

Continuous replenishment program (CRP), which uses timely and accurate sales point-in-time information to determine the quantity of goods sold, and determines the replenishment quantity and delivery quantity based on the inventory information of the retailer or wholesaler and a predetermined inventory replenishment program. Planning method for delivery time.

Continuous stock replenishment plan

discuss

Continuous replenishment program (CRP), which uses timely and accurate sales point-in-time information to determine the quantity of goods sold, and determines the replenishment quantity and delivery quantity based on the inventory information of the retailer or wholesaler and a predetermined inventory replenishment program. Planning method for delivery time.

Chinese name

Continuous stock replenishment plan

Foreign name

Continuous replenishment program

Short name

CRP

Types of

Planning method

Examples

For example, the replenishment strategy of the world-renowned business giant Wal-Mart Company: For each product, Wal-Mart stores set a safety stock level. Once the existing inventory is below this level, Wal-Mart's computer system automatically orders from suppliers through a computer network. Based on the recent sales data of Wal-Mart stores, the supplier analyzes the sales trends of the products, and then based on the product inventory data, taking into account logistics costs, decides when and how to ship to Wal-Mart stores. For continuous inventory replenishment, this series of procedures is a reflection of the automatic replenishment model CRP. The decision of CRP is the responsibility of the customer (the location of the inventory), that is, the inventory decision-making power and ownership are consistent with the physical location of the inventory. It should be said that from the perspective of decision makers, CRP is not different from the traditional push inventory replenishment model, but CRP is based on real-time demand data for replenishment, while push replenishment is based on predicted demand The data is replenished ahead of time.

The automatic replenishment mode is mainly suitable for downstream companies that do not have IT systems or infrastructure to effectively manage their inventory, as well as upstream manufacturers with strong strength, large market information volume, and high direct storage delivery levels . ^[1]

The above reference has some errors:

If the supplier does not have an IT system or infrastructure, how can the retailer's data be known in a timely manner. The correct way is to use the VMI method. Retailers share sales data with suppliers. Suppliers automatically replenish according to the retailer's data. Of course, when they do, the two parties must coordinate the replenishment.

CRP is the basic ECR (Effective Consumer Response System). CRP mainly uses the supply chain of the food industry. Unlike MRP or DRP, specify a plan at a specific time

No need. In other words, a basic rule is that the product will be automatically replenished in real time only when a specific part is sold, and there is no need for a specific threshold to specify a replenishment point or an order according to the batch order method. It is its limitation, so generally this method will be implemented in combination with the order point and the economic order method. A very important point of CRP is synchronization, that is, the retailer synchronizes sales data to the supplier so that the supplier can make seamless and continuous ordering. If the tap water replenishment method is the same, the goods will be automatically replenished when needed. Come in.