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Automatic backorder reservation

  • 1.  Automatic backorder reservation

    GOLD CONTRIBUTOR
    Posted Aug 03, 2016 02:07 AM

    Hi all!

    In our AX 2009 process we encounter the situation that not enough inventory is on hand during the sales order import from our order mgt system. This results in order lines not being fully reserved. At a later stage the inventory will become available, and I want the open (back) order lines to reserve it. This requires a manual process.

    Are there any methods to automatically run the inventory reservation after the order lines are created in Dynamics AX (i.e. an automatic batch or program rather than a manual excercise)?

    All feedback is highly appreciated!

    Best regards

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    Carina Fantenberg
    PostNord Strålfors Group AB
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    Conference-AXUG_200x200


  • 2.  RE: Automatic backorder reservation

    TOP CONTRIBUTOR
    Posted Aug 04, 2016 07:09 AM

    Hi Carina, this has always been a known limitation. With WHS (WAX), you have the ability to use a batch job with selection criteria and to release items to the warehouse for picking, which includes an option to reserve them at that point since items must be reserved for WHS before picking. Before that or if using standard warehousing, there's no ability to do this. I have seen a simple customization done for this many times in the past by using something like a batch job so you can control which orders get reserved first based on date, customer priority, etc.

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    Andrew Lencsak
    Senior Application Consultant
    eBECS North America
    Atlanta GA

    Conference-AXUG_200x200


  • 3.  RE: Automatic backorder reservation

    Posted 24 days ago
    We are experiencing this issue as well, while implementing in D365 FO. There is an enormous amount order lines that we are currently experiencing that find their way to back order status. Our concern is two fold: 1. We need a system controlled process that adheres to a First In First Out order fulfillment program; 2. We don't have the capability in manpower to manually reserve/allocate the FG materials.

    Is this still a problem? Is there really a simple batch process solution?

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    John Campbell
    Gibson Brands
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    Conference-AXUG_200x200


  • 4.  RE: Automatic backorder reservation

    TOP CONTRIBUTOR
    Posted 23 days ago
    ​As Andrew mentioned, many an implementation has created their own custom reservation batch program :)
    I'll add an option to the mix - Setting automatic reservation on, which results in the order being reserved the moment the salesline is entered (assuming it's not in a journal state. If it is, it's reserved when it is converted to a sales order)
    The downside to this is if you don't have the inventory, it obviously cannot do the reservation, and you still have to handle.
    Also - if you have orders with mixed availability, you can end up finding yourself holding some inventory in reserve for long periods if your fulfillment rate is 100%. (Ie., two order lines setup to ship together, you have the first line in stock and gets reserved, the 2nd line won't be in for 4 months - you end up sitting on the reservation of the first line for 4 months instead of using it for a different order).

    The other option to automatic reservation is allowing reservation to occur at release to warehouse. In this case you don't sit on reservations overly long, but you still have to worry about what happens in the mixed availability setting - you can configure it to partial reserve but not release, release to do partial shipments, or just pass over that order.

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    Tony Zeigler
    Senior Consultant
    Strategic Solutions NW, LLC
    Beaverton OR
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    Conference-AXUG_200x200


  • 5.  RE: Automatic backorder reservation

    Posted 23 days ago
    Andrew is absolutely right. Our consultants wrote a small batch job that runs every 5 minutes to check if inventory is available and it then automatically reserves the inventory when it becomes available.

    However, we have a different problem (I posted this issue earlier this week) whereby the original Requested Ship Date remains the same. So if I submit an order with today's RSD (11/20) but it goes on backorder, the inventory becomes available on Friday (11/22), the RSD remains as 11/20. This causes issues with Shipping SLAs.

    Apparently this is another known weakness within the product.

    Ravi

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    Ravi Ramakrishnan
    CTO
    Wineshipping.com, LLC
    Napa
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    Conference-AXUG_200x200


  • 6.  RE: Automatic backorder reservation

    TOP CONTRIBUTOR
    Posted 22 days ago
    ​Slightly off-topic - but not sure why reservation would impact requested ship date? (Which is supposed to be the date the customer requested, even if unreasonable). The confirmed ship date should reflect what you have promised back to the customer, and some might expect it to be impacted by product becoming available later than expected. Even then however, such delays require some communication with your customer. If you had previously promised a 12/24/2019 delivery, and then you want to update to promise a 12/26/2019 delivery, it might seem a small change to you, but to the customer it might be too much, and they would cancel...
    I believe this is the reason AX doesn't have such a feature. Changing a promise date is not solely an internal issue...

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    Tony Zeigler
    Senior Consultant
    Strategic Solutions NW, LLC
    Beaverton OR
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    Conference-AXUG_200x200


  • 7.  RE: Automatic backorder reservation

    Posted 21 days ago
    Tony

    You make a good point.I suspect our situation is similar to many others where the inventory does not belong to us but the customer (we are a 3PL operating a fulfillment business on behalf of business). I have not had luck on finding out how and when CSD is set.

    Ravi

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    Ravi Ramakrishnan

    Napa
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    Conference-AXUG_200x200


  • 8.  RE: Automatic backorder reservation

    TOP CONTRIBUTOR
    Posted 21 days ago
    ​Ah, so if the customer sends the material later than expected, your perspective is quite natural that it impacts your confirmed ship date - since your really promising to the customer is more about how efficient your warehouse is.
    Given that, I don't see an out of the box way to get you exactly what you want, but I can make a few suggestions.
    1. Confirmed Ship Date is set based on the salesline's Delivery Date Control setting. The basic options are: None (user manually has to set confirmed dates), sales lead time (fairly straight +days to the requested), atp (look at inventory levels and incoming purchase orders to set based on when you expect to have inventory to supply it), and ctp (take into account production bottlenecks to turn the raw materials into the finished good).

    As a 3PL, ATP makes the most sense, since you won't have any production, but you are most likely managing incoming POs.

    Next - the timing of when the Delivery Date control logic kicks in. Normally, it will kick in when a line is saved. There is also a button at the top of the order under the Sell tab called confirmed delivery dates that allows you to run a calc for all lines on the order at once - thus allowing you to get a single date that works for all the lines.

    Unfortunately, once a date is set, AX figures it's locked in with the customer, and expects changes to be fairly manual....

    The good news - the logic behind the button at the top of the header (confirmed delivery dates) is fairly isolated, and can probably be built into a custom batch job that runs on orders that have recently been reserved. You might even be able to customize it to run after you have received material for a linked PO.

    I would advise playing around with the options on that button to see if you can get it to work like you want - and if so, work out a customization to run it as you receive POs that have linked SO's.

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    Tony Zeigler
    Senior Consultant
    Strategic Solutions NW, LLC
    Beaverton OR
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    Conference-AXUG_200x200


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