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AX2009 Reduction Key

  • 1.  AX2009 Reduction Key

    Posted Jan 30, 2019 04:28 PM
    Hi All,
      We just recently realized that our Reduction key was not set up for master planning. The way I am being told to set it up doesn't seem logical to me so I'm looking for some input.
      My understanding of this field is so the monthly forecast is decremented as the month passes; for example, for a forecast of 200, 1/2 way through the month there should be 100 remaining.
      Based on the periods below, it look to me like it's keeping 100% for the entire month, I'm thinking it should be more like
    Week 1- 100%
    Week 2- 75%
    Week 3- 50%
    Week 4-25%

    Can I get a little push in the right direction here, I'm not sure I fully understand the effects of the Period Key.

    Thanks!
    Dave
    Reduction Key

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    David Vezmar
    ERP/Supply Chain Project Lead
    Dentsply Sirona
    Milford DE
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  • 2.  RE: AX2009 Reduction Key

    TOP CONTRIBUTOR
    Posted Feb 05, 2019 12:38 PM
    Hi David,
    The reduction key percentage is only considered if your Master plan has the field "Reduction principle" set to "Percent." The intent is to reduce the forecasted demand by a set % in the case actual demand never replaces the forecast. If set to Purchase/Sales orders then the forecasted demand (planned orders) are only reduced or consumed when an order has been created with a date that falls within the forecast period:

    The percent would be the amount of the forecasted quantity that should be considered prior to consumption.
    So for example, if your Forecast is 200 for a month, and within a month you have weekly reduction keys. The percentage of the key multiplied by your forecast = the planned demand for that period. So 200 for a month with a reduction key of 50% on week 2 would result in 100 units of planned demand from your forecast. You can typically use that if your forecast is inaccurate and you don't want to build/buy to it in case the "real" demand never comes in.

    Based on your screenshot below, 100% of the forecast would be considered demand for every month and would be reduced based on the Reduction principle as I  mentioned above.

    Hope that helps! Please note: this changes slightly in later versions, you had to have a Reduction key assigned in AX2009 to do any forecast reduction/consumption, in AX2012 and D365 you can purely set the Reduction principle if you don't need reduction keys.

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    Andrew Lencsak
    Solution Architect
    eBECS Limited
    Atlanta GA
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