This blog is about the possibilities of implementing ERP solution Microsoft Dynamics NAV in the construction industry. We will discuss about question „Is construction industry ready for ERP?
Of course, I will post about standard NAV, as well :)
In my previous post, I explain the base Inventory and Manufacturing Setup. Now, I will explain detail setup on Item Card, because we need to plan item demand and these configurations are the most important. We can open Item Card typing ‘Items’ in the search bar and open some of the items from the list.
On this tab, we can find only informative fields for item demand and this fields are not configurable:
On this tab, we need to configure Replenishment System field. Specifies the type of supply order that is created by the planning system when the item needs to be replenished. The following options exist:
We also need to configure Lead Time Calculation field. This field specifies a date formula for the amount of time that it takes to replenish the item. This field is used to calculate the date fields on order and order proposal lines. Details about time calculation, I described in my older post: https://community.dynamics.com/nav/b/nav4construction/archive/2013/08/25/inventory-planning-part-3-microsoft-dynamics-nav.aspx#.UiIGTza-2m4
When the Lead Time Calculation field is filled in several windows, it is prioritized as follows:
After we configure this field, we have to configure one of these fields’ areas (depends of previous inventory increase setup):
There are next fields placed in three areas:
Changing the field only affects future consumption calculations. If you increase the rounding precision of an item that exists on open consumption journal lines, then you must refresh the production order and at least the component need, and you must recalculate the consumption journal line. However, if you decrease the rounding precision, then the open consumption journal line is unchanged, and you do not have to refresh or recalculate them.
If the item routing includes fixed costs such as setup time, then the value in this field is used to calculate the standard cost price and distribute the fixed costs of manufacturing the item. To limit the amount of planning suggestions for insignificant changes to existing orders, use the Default Dampener Quantity field, which is a percentage of the lot size.
This is the most important tab for item planning. On this tab, we need to configure next fields:
Important: If you change to a different reordering policy option, then some planning parameter fields that were previously active and contain the most recently used values may be disabled. Planning calculations will ignore these values.
If you are planning for demand at a location that differs from the Components at Location field and you are not using SKU, then the Lot-for-Lot reordering policy option with blank planning parameters is used. Items that use the Order reordering policy option still use the order reordering policy,
This field is disabled if Reordering Police is set as Order.
If no value is specified in the Safety Lead Time field, then any value that is defined in the Default Safety Lead Time field applies. 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
The safety stock quantity must always be below the reorder point. If you leave the field blank, then the safety stock quantity for the item is set to zero. If you enter a negative number in the field, then the value is ignored.
This field is enabled only if Reordering Police is set as Lot-for-Lot, except Include Inventory field.
This field is enabled only if Reordering Police is set as Fixed Reorder Qty. or Maximum Qty.
If you leave the field blank, then requirements that share the same date are grouped together.
This field is disabled only if Reordering Police is set as Order.
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