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Master planning- round ups

  • 1.  Master planning- round ups

    GOLD CONTRIBUTOR
    Posted Dec 11, 2019 12:29 AM

    Hi there,

    We are facing a simple but serious issue in planned orders of master planning. Assume that for an item we have set the following parameters at the time of running master planning.

    On-hand= 1

    Minimum level= 5

    Demand forecast= 2

    Inventory multiple= 10

    Now, system generates two separated planned transfer orders with 10 quantities (total 20 QTY) and with the same main warehouse, warehouse, order date and delivery date. The difference is related to their pegging. The first planned transfer order pegs the safety stock and the other one pegs the demand forecasts.

    It seems that the algorithm plans for Minimum and Demand forecast separately since it round up the quantities first and then generated the planned transfers. It does not make sense because the total required amount is 6 (rounded to 10) while the planned quantity is 20. And consequently, the inventory level is increase too much.

    It makes more sense to sum up the quantities and then round up it.

    Does anyone have any solutions for it?

    #AX2012 #MasterPlanning #Admin #Functional #SupplyChain #FinanceandOperations

    ​​​​​​​

    ------------------------------
    Mohammad Gholami
    Ofogh Koorosh
    ------------------------------
    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 2.  RE: Master planning- round ups

    Posted Dec 11, 2019 04:53 PM
    Hi Mohammad,
    I think the setup you have is probably not aligned with what you are looking for.

    First, what is the setting in the Coverage code field of the item's coverage group? It sounds like it is set to "Requirement" meaning that it tries to net a single line of supply to a single line of demand (with some slight variation due to other setups).
    I would suggest retesting this with a coverage code of "Period" which allows you to specify a number of days to sum demand to a single planned order for the total required quantity.

    My guess is currently you are getting these two planned orders but if you also have Action messages turned on, it's telling you to reduce or cancel one of those planned orders since it will end up in excess inventory.

    Thanks
    Drew

    ------------------------------
    Andrew Lencsak
    Solution Delivery Manager
    Arbela Technologies
    Irvine CA
    ------------------------------

    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 3.  RE: Master planning- round ups

    GOLD CONTRIBUTOR
    Posted Dec 11, 2019 11:50 PM
    Hello Andrew,

    Thanks for yous response. I have already set the coverage code as period and it is equal to 7 days. Is it justifiable?

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

    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 4.  RE: Master planning- round ups

    TOP CONTRIBUTOR
    Posted Dec 12, 2019 03:12 AM
    Hi,

    Can you screenshot the Net requirements which shows this, and the Coverage settings (Coverage group -> General tab might be enough, unless you are using Item coverage).

    ------------------------------
    Guy Terry
    Application Consultant
    Annata
    Portsmouth
    ------------------------------

    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 5.  RE: Master planning- round ups

    GOLD CONTRIBUTOR
    Posted Dec 14, 2019 03:26 AM
    Hello Guy,

    The following images show the planned orders in net requirement form and the related settings.
    As you can see, since the multiple is 20, the required amounts could be satisfied just with one of the planned orders.
    I realized that the generated orders have different Requirement dates (shown in the gird at the bottom of the form) but since the required dates are closed in the related calendar (12/15/2019 and 12/17/2019 are closed), the planned orders are moved to an Open day (12/16/2019).
    Net Requirements1


    Net Requirements


    Net Requirements


    Item Coverage- Coverage group


    Calendars


    Default Order settings


    Kind regards

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

    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 6.  RE: Master planning- round ups

    D365UG/AXUG ALL STAR
    Posted Dec 12, 2019 07:31 AM
    Andrew is correct, I have often seen where the coverage group was not set correctly and gave the wrong results based on what the end user wanted to see. Period is a better consolidation to get a single order and have it operate on totals rather than individual requirements

    ------------------------------
    Paul Martin
    Production Program Manager
    Elite Comfort Solutions, LLC
    Rutherfordton NC
    ------------------------------

    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 7.  RE: Master planning- round ups

    Posted Dec 12, 2019 08:48 AM
    Note that safety stock requirements are planned together with other requirements (one requirement among others). However, the safety stock requirement needs a requirement date and this is controlled by the parameter 'Fulfill minimum'. If you set that to Today's date plus procurement time the requirement of the safety stock will be today's date plus the lead time. If that date ends up in another period than the other requirements (sales order requirements) and you are using coverage code = Period you might end up with two planned orders. One way to handle that could be to extend the coverage period. However, it is not bullet proof. Lead times are many times calculated in working days but coverage period is calendar days. So, no matter how you set the parameters there is always a risk that you might end up with duplicate planned orders.

    ------------------------------
    Bertil Hökerberg
    ERP Services Manager
    Lindab
    Grevie
    ------------------------------

    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 8.  RE: Master planning- round ups

    GOLD CONTRIBUTOR
    Posted Dec 14, 2019 05:28 AM
    Hello Bertil,

    Thanks for your response. I uploaded the net requirement outcomes in the upper comments. As you correctly mentioned, the two planned transfers have different requirement times (12/15/2019 and 12/17/2019) but these two days are closed in the calendar and so they are moved to an open date (12/16/2019). The problem is that since the multiple is 20, even for two separate requirements (each of them with 1 quantity), the system places two planned orders having 20 quantities (for each) that equals to total 40 quantities.
    It think it  makes more sense to accumulate the required amounts and then round it up instead of first rounding up and then accumulating them.

    I am eagerly looking forward to your kind suggestions.
    Regards

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

    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 9.  RE: Master planning- round ups

    TOP CONTRIBUTOR
    Posted Dec 16, 2019 04:52 AM
    Hi Mohammad

    I recreated the example as best I could using your screenshots, and I think I get the behaviour you want:


    So either there is some other parameter(s) at play, or I have different code.

    Since I have had problems with Safety stock in the past (to do with the way it creates planned supply), I know the environment I am using has some Safety-stock related hotfixes.... in particular KB 4074644 'Master planning improvements in relation to safety stock'. This KB has been mentioned in several threads here; you'll find them if you search.

    So one possibility is that you might get the behaviour you want if you can test it with this hotfix installed. The hotfix is newer than CU13 (its included in the January 2018 hotfix release for R3). Do you know what version of R3 you have?


    ------------------------------
    Guy Terry
    Application Consultant
    Annata
    Portsmouth
    ------------------------------

    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 10.  RE: Master planning- round ups

    GOLD CONTRIBUTOR
    Posted Dec 17, 2019 03:30 AM
    We are using R3 CU13 version. Does it include that hot-fix?
    I think another parameter is playing here, Could you please let me know what is your fulfill minimum?



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

    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 11.  RE: Master planning- round ups

    TOP CONTRIBUTOR
    Posted Dec 17, 2019 03:51 AM
    Hi,

    No, it doesn't. CU13 was released September 2017. This hotfix was released in 2018.

    My fulfill minimum was set to Today's date + Procurement time.


    My Transfer lead time was 14 days


    And it looks like AX was using that, because (when I ran it on the 16th), both my planned transfer and my safety stock demand have the date 30th Dec.



    ------------------------------
    Guy Terry
    Application Consultant
    Annata
    Portsmouth
    ------------------------------

    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 12.  RE: Master planning- round ups

    Posted Dec 16, 2019 08:50 AM

    Hi Mohammad

     

    I don't think there is any work around to this problem. This is just how the system behaves, and the round up will be done on each planned order (even though it ends up with a too high quantity on stock). We have the same issue here at our company.  I just wanted to clarify why this happens, unfortunately I don't have any solution more than you might see an "action message" telling you that one of the orders can be cancelled or have its quantity lowered.

     

    Regards,

    Bertil

     

     




    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


  • 13.  RE: Master planning- round ups

    GOLD CONTRIBUTOR
    Posted Dec 17, 2019 03:08 AM
    Thank you Bertil for your reply. The problem is that in this case no action message is generated to reduce the order amount, although the action message settings are enabled.

    Does it have any other set ups?

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

    The first step toward cloud success. - Migrate from AX to D365 with expert guidance from Microsoft. I'm Ready


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