The Base Planning Setup

Inventory Setup

There are some parameters of inventory planning. We can open this page on Departments->Warehouse->Administration->Inventory Setup.

You need to configure next fields on General tab:

  • Outbound Whse. Handling Time: Specifies a date formula for the outbound warehouse handling time for your company in general. The program uses it to calculate date fields on the sales order line.
  • Inbound Whse. Handling Time: Specifies a date formula for the inbound warehouse handling time for your company in general. The program uses it to calculate date fields on the purchase order and order proposal lines.

I explain this date formulas in my previous posts: https://community.dynamics.com/nav/b/nav4construction/archive/2013/08/25/inventory-planning-part-3-microsoft-dynamics-nav.aspx#.UiIGTza-2m4

Also, you must to configure Location Mandatory fields. Specifies whether items must have a location code in order to be posted. Place a check mark in the field if you want the program to require a location code when posting item-related transactions. This field, together with the Components at Location field on Manufacturing Setup, is very important in governing how the planning system handles demand lines with/without location codes.

Manufacturing Setup

There are some parameters of manufacturing planning. We can open this page on Departments->Manufacturing->Administration->Manufacturing Setup.

You need to configure next fields on General tab:

  • Normal Starting Time: Specifies the normal starting time of the workday. If you do not use capacity requirements planning, the BOM explosion in the planning worksheet is only calculated by the lead time. When you use capacity planning this field is only used as base information.
  • Normal Ending Time: Specifies the normal ending time of a workday. If you do not use capacity requirements planning, the BOM explosion in the planning worksheet is only controlled by the lead time.
  • Planning Warning: Specifies whether to run the MRP engine to detect if planned shipment dates cannot be met. This may occur if a confirmed deadline to the customer cannot be met in time, or if a confirmed quantity cannot be manufactured in time.
  • Dynamic Low-Level Code: Specifies whether to immediately assign and calculate low-level codes for each component in the product structure. If you have large amounts of data, this function can have negative effects on the program's performance, for example during automatic cost adjustment. Note that this is not a retroactive function, so it is a good idea to consider the use of this facility beforehand. As an alternative to the automatic calculation that occurs dynamically if the field is selected, you can run the Calculate Low-Level Code batch job from the Manufacturing menu by clicking Product Design, Calculate Low-Level Code (if you do not select the Dynamic Low-Level Code field, then you must run the Calculate Low-Level Code batch job before you calculate a supply plan).

You can assign a low-level code to each part in the product structure or the indented BOM. The top final assembly level is denoted as level 0 - the end item. The higher the low-level code number, the lower the item is in the hierarchy. When you calculate a plan, the BOM is exploded in the planning worksheet, and the gross requirements for level 0 are passed down the planning levels as gross requirements for the next planning level.

The main planning fields are on Planning tab:

  • Current Production Forecast: Specifies the name of the relevant production forecast to use to calculate a plan. (I wrote about this in my previous posts: https://community.dynamics.com/nav/b/nav4construction/archive/2013/08/29/inventory-planning-part-5-microsoft-dynamics-nav.aspx#.UiIGyja-2m4)
  • Use Forecast on Locations: Specifies whether to filter according to location when calculating a plan. To do so, click the field to insert a check mark. The program then nets actual demand against forecast demand for the specified location only. If you leave the field blank, the program regards the production forecast as valid for all locations.
  • Default Safety Lead Time: Specifies a time period that is added to the lead time of all items that do not have another value specified in the Safety Lead Time field on the item card or the SKU card. The time period is added to the item’s existing lead time as a buffer to help make sure that it is availability on time when it is purchased, assembled, produced, or transferred (I explain this date formulas in my previous posts: https://community.dynamics.com/nav/b/nav4construction/archive/2013/08/25/inventory-planning-part-3-microsoft-dynamics-nav.aspx#.UiIGTza-2m4).
  • Blank Overflow Level: Defines how the planning system should react if the Overflow Level field on the item or SKU card is empty. You can select from the following options.
    • Use Item/SKU Values Only: The blank value in the Overflow Level field of the item or SKU is respected, and the overflow level is not used.
    • Allow Default Calculation: The overflow level is calculated as follows for items that use the two supported reordering policies: Maximum Qty. (Overflow Level = Maximum Inventory + (Minimum Order Quantity. + rounded up to nearest order multiple)) or Fixed Reorder Qty. (Overflow Level = Reorder Quantity + Reorder Point + (Minimum Order Quantity + rounded up to nearest order multiple))
  • Combined MPS/MRP Calculation: Specifies whether MPS and MRP are calculated in one step when you run the planning worksheet. If this field is selected, then both the MPS and the MRP fields are selected in the Calculate Plan - Plan. Wksh. window, and you can clear either field or both fields. If this field is not selected, then you can select either the MPS or the MRP field in the Calculate Plan - Plan. Wksh. window, but you cannot select both.
  • Components at Location: Specifies the inventory location from where the production order components are to be taken if you have not specified a location on a SKU card. This field, together with the Locations Mandatory field in the Inventory Setup window, is very important in governing how the planning system handles demand lines with/without location codes. For production demand that is purchased (when the planning engine is used solely for purchase planning and not for production planning), the program will use the same location for components as the one stated on the production order. However, by filling in this field, you can redirect the components to another location.
  • Default Dampener Period: Specifies a period of time during which you do not want the planning system to propose to reschedule existing supply orders forward. This value in this field applies to all items except for items that have a different value in the Dampener Period field on the item card. When a dampener time is set, an order is only rescheduled when the defined dampener time has passed since the order's original due date.
  • Default Dampener Quantity: Specifies a dampener quantity to block insignificant change suggestions for an existing supply if the quantity by which the supply would change is lower than the default dampener quantity.

If the suggested change in quantity is higher than the default dampener quantity, then the suggestion is not blocked. You use a dampener to limit insignificant action messages when a plan is being calculated. This setting applies globally, except for items that have a different value in the Dampener Quantity field on the item card.