Multi-Location Inventory: A Day in the Life of the Business Central Replenishment Engine

Managing inventory across several warehouses, stores, and distribution centres is one of the most difficult tasks in today’s business. Inventory misalignment, transfer delays, unnecessary purchases, and lost sales can quickly damage the bottom line and customer satisfaction. Microsoft Dynamics 365 Business Central solves this problem by using its own replenishment and planning engine, which continually assesses demand, availability, and geographical-based inventory to maintain your network in a balanced state.

In this article, we will walk through how Business Central accomplishes multiple locations when it comes to inventory on a day-to-day basis.

Demand and Inventory are Re-Evaluated

As the orders begin to flow in, whether through e-commerce, POS terminals, or B2B sales, Business Central can record this demand and update the inventory automatically by location because of every sale, every shipment, and every return. The replenishment engine evaluates:

  • Inventory at respective sites
  • Open sales orders
  • Transfer orders in transit
  • Purchase orders not yet received
  • Safety Stock and Reorder Point Requirements

Rather than being responsive in times of shortage, Business Central is proactive in determining possible risks of stock.

Location-Level Planning Begins

Business Central looks at inventory planning by location, not only on a global basis. This is very important in a multi-site environment. The system assesses:

  • Which locations are at risk of running out
  • Locations that have excess inventory
  • Which items are experiencing increased demand

On this basis, Business Central establishes whether to meet the demand by:

  • A transfer from another location, or
  • Purchase order from a supplier

This is to ensure that there is no unnecessary buying considering that products already exist in other parts of the network.

Planning Parameters Shape Intelligent Decisions

Each replenishment proposal is based on the planning configuration of each item, which consists of the following:

  • Reorder Point
  • Safety Stock
  • Lead Time
  • Lot Size
  • Replenishment System
  • Transfer-from Location

These enable Business Central to calculate the following:

  • Buying quantities to transfer
  • Buying quantities to order
  • When the inventory is being called
  • Which location or vendor should supply it

This makes the replenishment process predictable rather than a result of guesses.

Actionable Recommendations are Generated

When planners open the Planning Worksheet, they will see the following ‘Action’ suggestions:

  • Transfer Orders between locations
  • Purchase Orders to Vendors
  • Quantities and due dates that reflect actual demand

These recommendations already take into consideration what supply already exists, as well as transit inventory. In planning, requirements are reviewed and approved instead of calculated.

Execution

After approval, the following are created automatically by Business Central:

  • Transfer Orders between locations
  • Purchase Orders to vendors

For transferring, the system:

  • Reserves inventory
  • Tracks commodities in transit
  • Updates availability at both sending and receiving ends

For the purchases, it records:

  • Expected Delivery Dates
  • Cost
  • Supplier commitments

Each step is monitored, and it is quantified through inventory availability.

Continuous Re-Planning

As the shipment is sent, the following is calculated in Business Central:

  • Stock Availability
  • Cost layers
  • Coverage of demand
  • Replenishment needs

The planning engine is never static. It keeps changing based on what happened during the day.

Why This Matters

Without a Replenishment Engine, multi-location businesses typically face the following issues:

  • Stockout at one location, while another is overstocked
  • Overbuying
  • High carrying costs
  • Delayed customer fulfilment

Business Central eliminates these issues by keeping every location aligned to actual demand and available supply.

The result is:

  • Improved service levels
  • Lowered inventory-carrying costs
  • Improved cash flow
  • Few ’emergencies’ purchases
  • Higher efficiency of operations

Conclusion

The Business Central replenishment and planning engine is a background process, but it certainly plays a central role in the flow of multi-location operations.

Continuous assessment of demand and supply, along with location-level inventory, makes sure the right products are in the right place at the right time without the help of any person.

For any organization managing inventory across several sites, this intelligent capability of planning is sure not to be helpful but indispensable.