Supply chain | Supply Chain Management, Commerce

Does Pegged Supply in a formula always create inventory reservations?

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Posted on by DH-17071510-0

Our company recently implemented the use of Pegged Supply in our Formulas, so that when we firm up an order of a Finished Good, the system would automatically firm up the WIP production orders that are set as Pegged Supply in it's forumla. While this has increased efficiency from a scheduling standpoint, we are running into issues because of the inventory reservations that are being created between the Pegged Supply orders. There are some instances where the WIP order is finished, and we want to consume it against a different Finished Good order than it was originally Pegged Supply for, but get errors because of the reservations that are in place. The only solution is to manually remove the reservations each time this happens. Ideally, we would rather that these reservations are not made in the first place - is there any configuration that can be set where the Pegged Supply still firms up WIP orders for us, but does not create the inventory reservations in the background? Or where it allows us the flexible to consume these orders against other Finished Good orders? Or if not, is there a way to easily remove these reservations in mass?

As info, we are using advanced warehousing in D365 F&O.

Thanks in advance!

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Bill Ngo 370 on at

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Does Pegged Supply in a formula always create inventory reservations?

Hi DH,

You should check again to see if the option "Override the default reservation principle for materials in production" in your Item "Item model groups" is configured to manual reservation or not? If not, try to see if if set to Manual, is there still planned production order or reserve?

For more detail pls see:

Override the default reservation principle for materials in production - Supply Chain Management | Dynamics 365 | Microsoft Learn

Bill

Rgds,
DH-17071510-0 32 on at

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Does Pegged Supply in a formula always create inventory reservations?

Hi Bill, those settings are already set to manual, both at global and site specific parameters. Reservations are still created every time we firm up a planned production order that has pegged supply in the formula.
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Bill Ngo 370 on at

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Does Pegged Supply in a formula always create inventory reservations?

Hi DH,

The solution for the reservations are not made in the first place. Change your configuration so that you can set where the Pegged Supply still firms up WIP orders for us, but does not create the inventory reservations in the background.

Please check Reservation option in your Production control parameters. Turn it to Manual.

Also check Production control parameters by site (if you have a setup).

Rgds,

Bill