Well, strangely enough, it is not covered in the Warehouse management implementation guide.
But here's what I could find. Hope that helps.
Also, there's a detailed step by step on TechNet:
technet.microsoft.com/.../dn750873.aspx
Demand based replenishment has similar setup for the replenishment template except the template lines are much simpler. Min and max values are no longer needed and location criteria will not be used either. Instead, we only need to setup up the item criteria, replenishment UOM, and demand increment. There is also an additional field, Directive Code, that is optional and works the same way it does on work template in order to help limit what location directives are chosen. When an item fails to allocate for an order and a replenishment template has been selected based on wave step code (described later), the item criteria will be used to help determine which template line will be used.
Location Directives are used slightly differently for demand based replenishment. Unlike min/max replenishment, demand based replenishment needs to determine what location is to be replenished. We use put location directives to do this. Put location directives use the directive code on the replenishment template line if specified. Pick location directives are used the same as with min/max, to determine where to get inventory for the replenishment.
Because demand based replenishment is wave based we include it as a wave step in the wave template. It is an optional wave step that is run after allocation for an item has failed. The replenishment wave step uses the wave step code to determine what replenishment template will be selected for demand based replenishment. Only wave templates that include the replenishment wave step can benefit from the demand based replenishment functionality.
Load Demand Replenishment sums up the demand for several loads and creates the needed replenishment work in order to stock the picking locations the load work will be created for. Load Demand Replenishment has many similarities with Wave Demand Replenishment (above). The big difference between Load Demand Replenishment and Wave Demand Replenishment is how and when it’s run. Load Demand Replenishment is run by a batch job similar to Min/Max Replenishment. The menu item is in Warehouse management menu under Periodic ïƒ Load Demand Replenishment. To setup the batch job you must select the Load Demand Replenishment Template you want to run and a filter query that specifies what loads will be used to determine the demand.
Some other differences in setup can be found on the replenishment template. First of all, the replenishment template header must be created with a type of Load Demand. Each replenishment template line will be similar to Wave Demand but has some additional setup. One additional setup is the Location Query. This Query will define locations in which any available quantity will be subtracted from the aggregated demand of the loads. This would typically be used to define the locations from which load work is picked.
Another new setup is the Applicable Demand field. This determines what portion of the load’s quantity will be used when calculating demand.
• Full Qty- This will take the full load line qty and add it to the demand.
• Loose Qty – This will take any qty not even divisible by the load line’s packing qty and add it to the demand. (Example: Load line qty = 125, Packing qty = 50, Loose Qty(remainder) = 25
