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MRP setup

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  • 1.  MRP setup

    SILVER CONTRIBUTOR
    Posted Jul 25, 2019 04:36 AM
    Hi All,

    In the master planning, whenever I run it , it considers the demand forecast of today and forward. However, I want it not to consider today's demand and start from tomorrow's demand.

    I found a setup option in master planning parameters as Today's date calendar. I sat a calendar in which today's date is closed and open dates starts from tomorrow. But it keeps considering today's demand into account. Do I use the correct setup for my purpose??

    Is there any options not to consider today's demand into account?

    Your help is truly appreciated.

    Kind regards,



    ------------------------------
    Mohammad Gholami
    Ofogh Koorosh
    ------------------------------


  • 2.  RE: MRP setup
    Best Answer

    SILVER CONTRIBUTOR
    Posted Jul 26, 2019 08:40 AM
    Mohammad,

    You could use a forecast reduction key where the "Use effective date" is set to FALSE and then the first line is for 1 day with 100 in the percent column, then the second line would be for the rest of the coverage time fence (so 179 if you're looking out 180 days) and the percent set to 0.  Then on the master plan set the Method use to reduce forecast requirements to "Percent - reduction key" and in the coverage groups for the item set the Reduction key field to this key you've made.  This assumes you don't want to reduce forecast by orders or any other way in the future though.

    Thanks,

    ------------------------------
    Jonathan Anderson
    Senior Managing Consultant
    BKD, LLP
    Denver CO
    ------------------------------



  • 3.  RE: MRP setup

    SILVER CONTRIBUTOR
    Posted Jul 26, 2019 09:31 AM
    Dear Jonathan,

    Many thanks for your helpful reply. Your point is correct but the problem is the uncertainty in the real world. Lets assume the following situation:

    Our company owns a retail network. We have a store that is fed by a main warehouse through transfer orders with a 1 day lead-time. And master planning is run on a daily basis and with coverage period 1. For instance, we sat a promotion date for today and demand forecast for today (7.26.2019) is 1000 and so a transfer order with the same quantity was generated yesterday (Order date: 7.25.2019 and Delivery date:7.26.2019). But the problem is that service level of vendors is low and sometimes they cannot fulfill the warehouse and today we figure out that the transfer order is received with less quantity (700). So, Demand forecast (1000) > Transfer order (700).
    At the end of the day when we run master planning, the algorithm considers today's unsatisfied demand (1000-700=300) and tries to satisfy it but with delivery date of tomorrow! However today's unsatisfied demand is Lost-sales and does not exists any more.

    For the above-mentioned situation, we wanted to defer 1 day in the master planning effective date.

    Since we also could have uncertainty in demand, does your solution solve this problem?

    Many thanks in advance.

    ------------------------------
    Mohammad Gholami
    Ofogh Koorosh
    ------------------------------



  • 4.  RE: MRP setup

    SILVER CONTRIBUTOR
    Posted Jul 27, 2019 02:29 AM
    Jonathan,
    Thanks again. I implemented your suggestion, it worked for me :-) but I have an issue with it:

    Since we are in FMCG industry, the master planning is running every day and so, before running it we have to update the reduction key on a daily basis?

    I cannot find the "use effective date" in master planning. Would you please let me know where I can find it?

    Regards,
    Mohammad

    ------------------------------
    Mohammad Gholami
    Ofogh Koorosh
    ------------------------------



  • 5.  RE: MRP setup

    SILVER CONTRIBUTOR
    Posted Jul 29, 2019 08:33 AM

    Mohammad,

     

    The "Use effective date" is on the reduction key.  Here's a screen shot from D365, it should be set to No then it will be a rolling reduction key:

     

     

    Jonathan Anderson

    Senior Managing Consultant | BKD

    1801 California Street, Suite 2900

    Denver, CO  80202

    Direct Line 303-837-2262

    Office 303-861-4545 ext. 20670

    Fax 303-832-5705

     

    SIGN UP FOR BKD THOUGHTWARE®

     

     

     

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