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Impact of Calendars on Purchase Orders

  • 1.  Impact of Calendars on Purchase Orders

    SILVER CONTRIBUTOR
    Posted Jul 29, 2019 01:12 AM
    Hi all,

    I came across an unexpected behavior of calendars in AX 2012 R3.

    In order to integrate calendars into master planning and generation purchase orders I have define 3 calendars namely, Vendor Calendar, Item Coverage Calendar and Warehouse Calendar Then assigned them vendor, coverage group (item coverage) and receiving warehouse.

    Having tested several scenarios, it seems that order date should be OPEN in both Vendor Calendar and Item Coverage Calendar. And for delivery date it looks for calendars in a hierarchy as follows. 1. Vendor Calendar  2.Item Coverage Calendar  3. Warehouse Calendar.
    Warehouse Calendar shouldn't be in the highest priority for the delivery date?!

    Here is my main problem, because of business complexities (retail), on Thursdays we should receive product in warehouse but we should not place any orders. I tested several combinations of closed and open dates in the three defined calendars but unfortunately could not reach the desired occasion. You may find my test results in the below table.

    Item coverage Parameters: coverage code= period /  time fence= 10/ coverage period=1/ negative days=0 / positive days=7 / minimum=0 / lead-time=1

    Scenario 1 Day 30-Jul-19 31-Jul-19 1-Aug-19 2-Aug-19 3-Aug-19 4-Aug-19
    Tuseday Wdnesday Tursday Friday Tursday Saturday
    Demand 0 10 15 5 20 3
    PO (delivery)   25 15 5 20 3
    PO (order) 25 15 5 20 3  
    Vendor open open open open open open
    Item coverage open open open open open open
    Warehouse open open open open open open
                   
    Scenario 2 Day 30-Jul-19 31-Jul-19 1-Aug-19 2-Aug-19 3-Aug-19 4-Aug-19
    Tuseday Wdnesday Tursday Friday Tursday Saturday
    Demand 0 10 15 5 20 3
    PO (delivery)   10, 15   5 20 3
    PO (order) 10, 15 5   20 3  
    Vendor open open Closed open open open
    Item coverage open open open open open open
    Warehouse open open open open open open
                   
    Scenario 3 Day 30-Jul-19 31-Jul-19 1-Aug-19 2-Aug-19 3-Aug-19 4-Aug-19
    Tuseday Wdnesday Tursday Friday Tursday Saturday
    Demand 0 10 15 5 20 3
    PO (delivery)   25   5 20 3
    PO (order) 25 5   20 3  
    Vendor open open open open open open
    Item coverage open open Closed open open open
    Warehouse open open open open open open
                   
    Scenario 4 Day 30-Jul-19 31-Jul-19 1-Aug-19 2-Aug-19 3-Aug-19 4-Aug-19
    Tuseday Wdnesday Tursday Friday Tursday Saturday
    Demand 0 10 15 5 20 3
    PO (delivery)   10 15 5 20 3
    PO (order) 10 15 5 20 3  
    Vendor open open open open open open
    Item coverage open open open open open open
    Warehouse open open Closed open open open
                   
    Scenario 5 Day 30-Jul-19 31-Jul-19 1-Aug-19 2-Aug-19 3-Aug-19 4-Aug-19
    Tuseday Wdnesday Tursday Friday Tursday Saturday
    Demand 0 10 15 5 20 3
    PO (delivery)   25   5 20 3
    PO (order) 25 5   20 3  
    Vendor NA NA NA NA NA NA
    Item coverage NA NA NA NA NA NA
    Warehouse open open Closed open open open
                   

    I would be truly grateful if anyone .
    Regards,​

     #MasterPlanning #AX2012 #Functional #FinanceandOperations
    ​​​​​

    ------------------------------
    Mohammad Gholami
    Ofogh Koorosh
    ------------------------------
    Conference-AXUG_200x200


  • 2.  RE: Impact of Calendars on Purchase Orders

    TOP CONTRIBUTOR
    Posted Jul 29, 2019 12:29 PM
    Hi Mohammad,
    Can you elaborate on why you would want to prevent orders from being placed on Thursdays? I could understand delivery dates being closed or certain days of the week being open for shipping and receiving but I do not know many companies that would want to prevent an order from being placed on any given day. For example, If I allowed orders to be entered through a web portal that then interfaced to the ERP program, that would prevent those orders from being sent to the ERP system. The calendars are not preventing users from creating transactions, they are purely means to drive the Planning module and dates in the system. Vendor calendars specifically control the receipt dates for vendor POs in the case those vendors can only deliver on certain days so that there is never an expected or confirmed receipt date into your warehouse for a day that the Vendor does not deliver.


    ------------------------------
    Andrew Lencsak
    Solution Architect
    DXC
    GA
    ------------------------------

    Conference-AXUG_200x200


  • 3.  RE: Impact of Calendars on Purchase Orders

    Posted Jul 29, 2019 12:51 PM
    Hi Andrew,
    This is the reason:
    We have a planning department that controls the Planned orders before firming them. The office is off on Fridays and now they firm the planned orders with delays, As a result  the suppliers don't deliver the products on the planned delivery date.


    ------------------------------
    Reza Pakdel
    Methods Improvement Supervisor
    Ofogh Koorosh Chain Stores
    ------------------------------

    Conference-AXUG_200x200


  • 4.  RE: Impact of Calendars on Purchase Orders

    TOP CONTRIBUTOR
    Posted Jul 29, 2019 01:24 PM
    Hi,
    Ok I understand that but preventing placing orders on that date does not solve your problem, the demand is still for a specific date. I.e. regardless of Buyer places order today or next week does not change when consumer wants the goods. Delaying when someone can place an order by closing that date from the calendar does not change when the product is required. I guess I am still not clear on what you are trying to achieve by not letting a user place the purchase order.

    ------------------------------
    Andrew Lencsak
    Solution Architect
    DXC
    GA
    ------------------------------

    Conference-AXUG_200x200


  • 5.  RE: Impact of Calendars on Purchase Orders

    SILVER CONTRIBUTOR
    Posted Jul 30, 2019 07:08 AM
    Hello Andrew,

    Many thanks for your reply. Since we are active in retail industry, POs are not placed by users but Master planning algorithm generates them. And we want not to place orders on some specific days in a week. But we should receive previously orders to warehouse.

    About your sentence "Vendor calendars specifically control the receipt dates for vendor POs in the case those vendors can only deliver on certain days so that there is never an expected or confirmed receipt date into your warehouse for a day that the Vendor does not deliver.", it is from vendor's side, but what if the warehouse is closed on that specific delivery date? does the algorithm takes this into account?

    Regards,





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

    Conference-AXUG_200x200


  • 6.  RE: Impact of Calendars on Purchase Orders

    TOP CONTRIBUTOR
    Posted Jul 30, 2019 11:25 AM
    Hi Mohammad, The warehouse can also have a calendar assigned to it and MRP does take that into account. However, I feel like I'm missing some critical information about your operations here.

    When your say the Purchase orders are not placed by users but by MRP, do you mean that you use auto-firming and that all planned orders are automatically firmed into Purchase orders with no human intervention or did you just mean that Master planning is generating the planned orders and a user still has to firm them into Purchase orders? If you use autofirming and you just do not want to place orders on any specific day, then I would suggest what Robert discussed below and only run MRP on the days you are going to place orders. If it's manual, just because there is a planned order does not mean I need to place it today. Master planning is all about aligning your demand dates and quantities with supply dates and quantities. If a store places an order for 50 today and there is not enough inventory on hand or on an open receipt expected to be received, then Master planning will generate a planned order for it.

    ------------------------------
    Andrew Lencsak
    Solution Architect
    DXC
    GA
    ------------------------------

    Conference-AXUG_200x200


  • 7.  RE: Impact of Calendars on Purchase Orders

    SILVER CONTRIBUTOR
    Posted Jul 30, 2019 05:01 PM
    Andrew, I mean Master planning is generating the planned orders and a user still has to firm them into Purchase orders.
    Lets assume that we have 1 day lead-time for the purchase orders. We have a planning department that firms the planned purchase orders. On Thursdays our office is OFF but the warehouse in ON. It means that on this day nobody is in our office to firm the generated planned orders but we should receive the already ordered in the warehouse. So, we need to move the order of Thursdays to Wednesdays. In other words, on Thursdays warehouse is open and receives orders but the office is OFF and cannot firm the planned orders. And if it cannot firm and confirm them, it should postpone it 1 day and the vendor delivers the order with 1 day delay.
    How can we handle it? 


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

    Conference-AXUG_200x200


  • 8.  RE: Impact of Calendars on Purchase Orders

    TOP CONTRIBUTOR
    Posted Jul 30, 2019 10:46 PM
    Hi Mohammad,
    When is the demand being placed? If it's known, you can firm a planned order as soon as it's created. Nothing will stop a user from firming a planned order on a Wednesday even if it does not need to be placed until Thursday. Just because the lead time is a day does not mean you need to place the orders everyday so if the demand is already in the system on the Wednesday, why not just firm the Purchase orders then? You can have a single PO with multiple lines and delivery dates if required.
    With a one day lead time, does using Master planning make sense? Depending on your volumes, you may want to consider a different supply strategy like using a Kanban system, or maybe trying to use Purchase order lines with scheduled delivery dates if the demand is possibly known.

    ------------------------------
    Andrew Lencsak
    Solution Architect
    DXC
    GA
    ------------------------------

    Conference-AXUG_200x200


  • 9.  RE: Impact of Calendars on Purchase Orders

    SILVER CONTRIBUTOR
    Posted Jul 31, 2019 02:01 AM
    Andrew, I want the Master planning generate the POs as the following table.(Thursdays are exceptions)

    Day 30-Jul-19 31-Jul-19 1-Aug-19 2-Aug-19 3-Aug-19 4-Aug-19 5-Aug-19
    Tuseday Wdnesday Tursday Friday Tursday Saturday Tursday
    Demand 0 10 15 5 20 3  
    PO (delivery)   10 15 5 20 3  
    PO (order) 10 15,5   20 3    
    VendorCalendad            
    Item coverage Calendar            
    Warehouse Calendar            


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

    Conference-AXUG_200x200


  • 10.  RE: Impact of Calendars on Purchase Orders

    Posted Jul 30, 2019 10:38 AM
    Mohammad, how are you launching your PO run?  In 2009 we have the job that calculates and generates purchase orders running as a batch job within AX, and we simply schedule that job to run on the desired days (for us Sunday night through Thursday night) and not on other days.

    ------------------------------
    Robert Menschel
    Lead Developer
    HD Supply Home Improvement Solutions
    Roseville CA
    ------------------------------

    Conference-AXUG_200x200


  • 11.  RE: Impact of Calendars on Purchase Orders

    SILVER CONTRIBUTOR
    Posted Jul 30, 2019 05:06 PM
    Hi Robert,

    Your comment is valuable but we need to run it everyday. Actually all we need is to bring forward the order date of Thursdays.

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

    Conference-AXUG_200x200


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