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Master planning suggesting order date too early

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Posted on by jwell22 58
Hello,
 
I have an interesting situation here regarding batch order lead times and raw material lead times.
 
I want master planning to suggest a planned batch order to create finished good #1 which involves the consumption of raw material A.
 
I have set the stock lead time of the finished good (which is created via a batch order) to 70 days in default order settings (see below), because we need to plan production 70 days in advance and therefore approve and firm the planned batch order.
 
 
 
 
Dynamics correctly suggests a planned batch order for finished good #1 with the order date 70 days ahead of the requirement date - see below:
 
 
 
However, the purchase order lead time for the raw material A is only 14 days, therefore we only need to place an order for this raw material 56 days (70-14) after approving batch order #1 on 03/12/2024.
 
Unfortunately, Dynamics doesn't seem to take this into account, and suggests a planned purchase order for raw material A for delivery on the same day as the order date of the planned batch order - see below:
 
 
Ideally, if the requirement date of the planned batch order is 11/02/2025, I would want the requirement date of the planned purchase order to be the same, not 70 days earlier. Therefore, the order date for the planned purchase order should be 28/01/2025, not 03/12/2024. Otherwise, the raw material will be delivered too soon, and just sit there for 70 days until we need it on 11/02/2025.
 
Is there any way around this?
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Planning
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Inventory and warehouse management
  • jwell22 Profile Picture
    jwell22 58 on at
    Master planning suggesting order date too early
    Thanks for your help - I will look into this suggestion and see if it works for us.
  • GuyUK Profile Picture
    GuyUK 28,293 on at
    Master planning suggesting order date too early
    In that case, my suggestion is a Route, using Queue time before (and ensuring on the Route group that you do not have Capacity ticked on the Queue before line).
  • jwell22 Profile Picture
    jwell22 58 on at
    Master planning suggesting order date too early
    We need to have 70 days because this is the lead time our 3rd party provider has set us due to their own capacity limitations. Their production line is often booked up 8-10 weeks in advance.
     
    Production itself takes just one day, but this production needs to be arranged 70 days in advance. The raw material that is required for this production only needs to be ordered (from another supplier) 14 days before the production date.

    For instance, when our stock level of the finished good is forecast to dip below our safety stock level, we could have MRP suggest a planned batch order 70 days in advance of production, for which a planned purchase order for the raw material would be suggested just 14 days in advance of delivery and finished good production.
     
    If this helps you in your suggestion I'd be grateful to hear it.
  • Suggested answer
    GuyUK Profile Picture
    GuyUK 28,293 on at
    Master planning suggesting order date too early
    You haven't said why you need to plan production 70 days before it starts, and 56 days before you need to order the raw materials.
     
    You could turn off the 70 day lead time, set the Freeze Time fence for your finished goods items to 80 days, and manually schedule your Production orders to run when you like. Then use Master planning to order the raw materials only.
     
    Or you could use a Route instead of the 70 day lead time. The Route will contain details that allows FO to calculate how long the production actually takes (sounds like it starts and finishes on the same day?).
     
    If you need to plan production 70 days out because your machines are at full capacity until then, you could use finite capacity scheduling and let Master planning sort it out.
     
    If the 70 days represents how long it takes to prepare (setup) a Resource for each production order, you could use 70 days (1,680 hours) Setup time on the Route. With this setup, F&O can ensure that no other production order can be schedule to the resource during the 70 day window.
     
    Or if you want to plan 70 days out for what I will call 'no particular reason', you could use a Queue time before or 1,680 hours. This will allow you to plan multiple production orders on the resource within the 70 day window, and also ensure that you are ordering your Raw Materials two weeks before production begins.
  • jwell22 Profile Picture
    jwell22 58 on at
    Master planning suggesting order date too early
    Thanks for your input here. Yes, I realised shortly after that the stock lead time indicates how long the production or works order takes from start to finish.
     
    In my case, our operational process requires us to plan a production 70 days in advance, for which a raw material can be ordered just 14 days before:
    • Day 1 - Plan production
    • Day 56 - order raw material
    • Day 70 - raw material is delivered
    • Day 70 - production starts and finishes
    Therefore, I'm hoping there is a way to reflect this on Dynamics and Master Planning - any ideas?
  • GuyUK Profile Picture
    GuyUK 28,293 on at
    Master planning suggesting order date too early
    I think it might be because you are using a Lead Time rather than a Route. It assumes the lead time represents how long it takes to manufacture the item, and is proposing to bring in all the raw materials to meet the start of the manufacture.
     
    What is the reason for introducing this 70 day lead time? Is it sub-contract production, and the vendor requires this much notice? I'm wondering why you don't have a Route for the actual run-time of the manufacturing process, and use capacity planning and lead times of your raw materials to dictate when the production orders can be scheduled.

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