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Supply chain | Supply Chain Management, Commerce
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DDMRP Calculate Buffer Value asks for Average Daily Usage

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Posted on by 1,982

Hi everyone,

When I run calculate buffer values, I get an error message "You must specify the average daily usage for this item before we can calculate its minimum, maximum, and reorder-point stock levels."

pastedimage1680494666338v1.png

From the documentation here, average daily usage in the coverage group is an optional field since this is a calculated field when we run buffer calculations.

pastedimage1680495007400v2.png

So why do I get an error saying I need average daily usage to calculate buffer values if calculate buffer values will calculate the average daily usage? 

Kindly need your advice.

Thanks.

Jefry

I have the same question (0)
  • Dtyler4390 Profile Picture
    40 on at

    Got the same question, plus many more on this functionality. 

    Is the entity "Historical external demand" used in the ADU calculation?

    If not, how do I load historical daily usage information to start my project. 

  • Jefry Then Profile Picture
    1,982 on at

    Hi Dtyler4390,

    I think as long as we have any inventory transactions in FinOps, DDMRP can calculate ADU. 

    Based on my current understanding, DDMRP is intended to run daily and the decoupling point's main focus is the inventory level (minimum, reorder point, and maximum). So, It's not how to fulfil a demand directly.

    From the documentation here, for the past periods, ADU is calculated based on inventory transactions with status On orderReserved orderedReserved physicalPickedDeducted, or Sold. For the forward periods, DDMRP will calculate average daily usage based on our "forecast time fence" in our coverage group.

    pastedimage1680593934348v2.png

    But again, maybe there is something wrong with my understanding currently. Because with this understanding in my mind, I still have this error when running calculate buffer values.

  • Lopi Profile Picture
    12 on at

    Jefry, make sure you have the item coverage setup to calculate buffer values over time to Yes, also when you run the Calculate buffer values batch job say Yes to Calculate average daily usage

    If you have transactions in the system for the Past and Forward the system should be able to generate the daily calculations

  • Dtyler4390 Profile Picture
    40 on at

    This is great for an ongoing setup or movement from AX but doesn't work for migrations from other systems. You should be able to use historical external demand entity to load past sales.

    I spoke to PM about it and got "Good Idea" add to Idealist.

    Doesn't help my implementation of a large distribution operation.

  • Yogibj Profile Picture
    21 on at

    Yes — this behavior is confusing, but it is actually expected in D365FO DDMRP.

    The key point is:

    • Average daily usage is optional only when Buffer values over time = Yes.

    • When that option is enabled, D365 calculates the ADU automatically from historical demand during the Calculate buffer values process.

    • If Buffer values over time = No, then D365 expects you to enter the Average daily usage manually.

    In your screenshot, the error indicates that the system is trying to calculate the minimum, maximum, and reorder point, but it cannot find an ADU value for those item/warehouse combinations.

    Please check these fields on the item coverage record for the decoupling point item:

    • Buffer values over time = Yes

    • Demand history period is defined

    • There is actual historical demand (sales orders, forecasts, transfer demand, etc.) for the item in that warehouse.

    If there is no historical demand, D365 cannot derive an ADU, and the calculation will fail with the message you are seeing.

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