Use on hand inventory as safety stock

Question 1

State Verified Answer
Date Nacho Garcia
Date 2017-2-6 4:29 PM
Replies 72 replies
Answers 7 answers
Subscribers 610 subscribers
Views 7081 views

Question 2

Use on hand inventory as safety stock

Hello,

I am having a problem using on hand inventory as safety stock. So, even if I have more inventory on hand than the minimum stock key, a replenishment order is created.

The "Fulfill minimum" key is set as "Today" but as I get it, if I have enough inventory I should not have an order to replenish the safety stock today.

Negative days are set as zero and positive days are 365.

Any ideas?

Thank you all.

Regards,

Nacho

Nacho Garcia

Reply

Question 3

A couple things to check:

On the master plan itself, make sure the "include onhand inventory" box is check/enabled. I can't imagine this would be unchecked, but I've got to at least start with that :-)

Look at the setup for the coverage group assigned to the item. There's a setting for consume onhand inventory that can be toggled between before or after all other supply. You'd want this set to before. Note that this winds up defaulting to the item coverage form, but can be overridden there.

Chan Stevens

Question 4

In reply to Chan Stevens:

Hi Chan,

I had already checked these settings. They are as you wrote.
Anything else?
Thank you for your fast response.

Regards,
Nacho

Nacho Garcia

Question 5

In reply to Nacho Garcia:

Hi Nacho, if parameters are ok you should analize other possible situations... the item is batch controlled? is it expired? the disposition code is available? The requirement profile button should show you the inventory if AX is considering it

Héctor Eduardo Cazot

Question 6

In reply to Héctor Eduardo Cazot:

Hi Héctor,
The item is not batch controlled.
The first line of the Net Requirements table is the on hand inventory and the second line is an order for the max quantity even if my min key is less than my on hand inventory.
It just works as it is expected if the min key is set to zero or if the Fulfill minimum is set to the end of the coverage period (because it does not create an unnecessary order).
Anymore ideas?
Thank you all.

Regards,
Nacho

Nacho Garcia

Question 7

In reply to Nacho Garcia:

I think that a screenshot from the Plan tab of the item itself, Item coverage, General tab would be of help.

Was this item created within AX, or was it created with an data import tool?

Héctor Eduardo Cazot

Question 8

In reply to Héctor Eduardo Cazot:

I would also want to see the net requirements screen, but first a question - why is the negtive days zero? What happens to your suggested supply if you set it to 365? If you cannot answer the first one and the second resolves it you have a solution :-)

Steve Weaver | Dynamics AX Solution Architect - UK This forum post is my own opinion.

AdamRoue

Question 9

In reply to AdamRoue:

This is the table of the net requirements with negative days set to zero:

This is the capture of the net requirements with 365 negative days:

In both situations I do not understand why there is a purchase proposal if the on hand inventory is higher than the minimum key.

Thank you everybody.

Regards,

Nacho

Nacho Garcia

Question 10

In reply to Nacho Garcia:

Still need the coverage group screen shot please to see the coverage element.

Steve Weaver | Dynamics AX Solution Architect - UK This forum post is my own opinion.

AdamRoue

Question 11

In reply to AdamRoue:

This is the item coverage form:

And this is the Group coverage form:

I hope you find it helpful.

Nacho Garcia

Question 12

In reply to Nacho Garcia:

What are your settings for the reduction key of the forecast

Steve Weaver | Dynamics AX Solution Architect - UK This forum post is my own opinion.

AdamRoue

Question 13

In reply to AdamRoue:

Can you tell me why you are using the Min/Max setting from a business perspective? Can you also set it to period and see what happens on a new run?

Steve Weaver | Dynamics AX Solution Architect - UK This forum post is my own opinion.

AdamRoue

Question 14

In reply to Nacho Garcia:

"It just works as it is expected if the min key is set to zero or if the Fulfill minimum is set to the end of the coverage period".

If min=0, you're effectively turning off the safety stock threshold, so that part's not surprising. What is surprising, though, is that you say OR if you change the fulfill minimum setting to coverage time fence (with safety/min still at 20?) this does NOT generate a planned order due 2/6. That doesn't make sense, especially if it is correctly generating planned orders for future requirements other than the initial 2/6 order.

Look at the pegging for the onhand line. It might shed some light on this.

Chan Stevens

Question 15

In reply to Nacho Garcia:

I doubt this affects it (should be a bug if it does), but why does the item coverage show overriding the onhand inventory treatment (top right) and set the policy to consume inventory first, when that's the setting you're enforcing at the group level? You should only check the override to change away from the group setting, like you did by making the product min/max where the group is set to period.

Chan Stevens

Question 16

In reply to AdamRoue:

Hi Adam,

I was just exploring the possibilities of using the min/max key on a product with demand forecast. I am aware that it does not make much sense but then I found out that AX did not work as I expected or at least as I expected the min/max key to work.

If I set the key to "period" it still creates another purchase order in order to cover the safety stock:

The reduction key is set for weekly periods.

Thank you Adam.

Nacho Garcia

Question 17

In reply to Chan Stevens:

What it is doing (reading the net requirements) is retriggering supply when demand drops the inventory level below the maximum inventory. Now this should of course be the minimum trigger back up to the maximum, but from memory the Min/Max replenishment type has easily the most issues logged with MS. They fix parts, bring out new elements (like the inventory consumption) and it breaks it.

Simply put change it to period and it will work (guessing) how you want. You then need to question the business decision on the Min/Max approach and the business justifaction for this (I want you to tell me this :-)) You have not said your version of AX2012, but have a look on lifecycle services for Min/Maz issues and if your particular configuration is not there you would need to log it with MS.

Steve Weaver | Dynamics AX Solution Architect - UK This forum post is my own opinion.

AdamRoue