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Supply chain | Supply Chain Management, Commerce
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Quantity Tolerance on Planned Production orders

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Our company is utilizing D365 F&O. We are trying to find ways to reduce the noise created in planned orders, but keep running into a roadblock.  Our company is largely make to order, and for the most part, one production order is run to fulfill demand on one sales order. We can only run production orders in specific order multiples (Call it 5,000, for example). Most of the time, the quantities on the Sales Orders we receive do not match these multiples (for Example, we might receive an order for 41,000). When planning runs, it prompts us to overproduce  to cover all the demand (In this scenario, would prompt us to make 45,000 to cover the 41,000 order). Most of the time, though, we would prefer to only produce 40,000, since that would be closer to the actual ordered quantity, and would not leave us with 4,000 extra units. In our business, under-delivery is okay if it's within 5% of ordered quantity.
 
Is there a way to set under-delivery tolerances on planned production orders? For example, if we could tell the system that we are okay with a 5% under-delivery tolerance - That way, the system would recognize the shortage, but since it is within the 5% quantity tolerance on that item, it would not prompt it to generate an additional 5,000 lb order?
 
 
  • Hana Xue Profile Picture
    Hana Xue Microsoft Employee on at
    Quantity Tolerance on Planned Production orders
    Hi,
    I looked at the master planning module and there is no out of the box functionality to set under delivery tolerances. The Over and Under Delivery Tolerance feature is a feature in the Landed Cost module that allows businesses to set tolerances for the quantity of goods received. You can check this link: Introduction to Over/Under tolerance feature during goods in transit process - Microsoft Dynamics 365 Blog
    Best Regards,
    Hana

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