Master planning in Dynamics AX

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12/10/2015 Master planning in Dynamics AX JACOB RODER SR. SOLUTION CONSULTANT DYNAMIC CONSULTING JACOB.RODER@DYNAMICCONSULTING.COM 1 Agenda Morning Short Intro Master planning basics Master plan settings Time fences Coverage groups Misc. Forecasting Afternoon Questions? 2 1

Introduction Who am I? Which version are you on? Pre- AX 4.0? AX 4.0 AX 2009 AX 2012 R2 R3 Who uses master planning in Dynamics AX Who trusts master planning results Who knows how to troubleshoot master planning behavior 3 What is Master Planning? A grouping of business processes that includes the following activities: demand management, which includes the forecasting of sales, the planning of distribution, and the servicing of customer orders; sales and operations planning, which includes sales planning, production planning, inventory planning, backlog planning, and resource planning; amaster scheduling, which includes the preparation of the master production schedule and the rough-cut capacity plan. APICS Dictionary 4 2

Master planning basics Supply Purchase orders Production orders Sales order returns Inventory adjustments On-hand inventory Transfer order receipts - = Demand Sales orders Sales forecast Safety stock Transfer order shipments Production line Net requirements Planned purchase orders Planned transfer orders Planned production orders 5 Net requirements 6 3

One plan vs Two plans One plan Two plans 7 Master plan setup General Time fences Futures messages Action messages Safety margin Inclusion of specific inventory transactions Consider shelf life Planned production scheduling parameters Sales forecast settings Same time fences as coverage groups Used to override coverage groups Used to specify if requirement date should automatically update to calculated futures date Used to specify if requirement date on planned order should be automatically updated to action date Receipt margin Issue margin Reorder margin 4

Master planning parameters General Planned orders Standard update Dynamic and static plan Default coverage group Dynamic negative days Calendar Find trade agreements Planned receipt time Defaults for firming Find purchase agreements Time fences Time 10 5

Time fences, cont. 11 Coverage groups 12 6

Coverage codes Requirement Period Min/max Manual Requirement Each uncovered demand drives a planned supply Can use order multiples to optimize Coverage period of 6 days Demand is satisfied on the first requirement date and looks out entire coverage period Min of 250, max of 1000 Once accumulated value falls below min, an order big enough to bring accumulated up to the max is generated Manual Net requirements are not calculated for these items 13 Positive and negative days Positive days Negative days 14 7

Dynamic negative days Approved planned orders Used to indicated orders have been reviewed and should be acted on Are not deleted by Delete plan or Regenerate Intermediate step between planned order and firmed order 8

Fulfill minimum http://dynamicconsulting.com/frontpage/i-have-on-hand-inventory-let-me-use-it Forecasting Intermediate forecast Dynamic reduction principle Item allocation keys Forecasts can be reduced at intermediate levels Use All transactions reduction key on coverage group Transactions dynamic period Creates dynamic periods based on forecast date Controlled on master plan parameters Used to forecast at a product family level Important with new R3 forecasting functionality Interesting for reporting / viewing stats on Supply schedule form 18 9

12/10/2015 Questions? JACOB RODER SR. SOLUTION CONSULTANT DYNAMIC CONSULTING JACOB.RODER@DYNAMICCONSULTING.COM 19 Questions Lead times Calendars Safety stock journal Where should lead times go? Trade agreements, item coverage, default order settings? What s the disregard lead time check box for? Which calendars control how master planning works? What about closed days or working days? What are safety stock journals for? How are calculations performed? 20 10

Links http://blogs.msdn.com/b/axmfg/archive/2015/02/19/more-about-dynamic-negative-days.aspx http://blogs.msdn.com/b/axmfg/archive/2012/10/12/separating-tactical-and-operative-planning-for-master-scheduling.aspx http://dynamicconsulting.com/author/jroder/ https://twitter.com/jac_rod 11