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Dynamics 365 Community / Forums / Microsoft Dynamics AX (Archived) / Item supplied by trans...
Microsoft Dynamics AX (Archived)

Item supplied by transfer (short lead time), how to consume security stock ?

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Posted on by Mr W 77

Hi everybody,

I'm working on a mid size manufacturing company where we six months ago implemented AX R3 CU12.

We got some problems in the security stock vs lead time area and I thought that perhaps someone in this forum could help me.

The company got one big factory and a smaller one. Both placed in the same site but divided in different warehouses. Geograpically they are located 150 km apart. The smaller warehouse produces components that are used when manufacturing top level products in the biggerwarehouse.

Here's the scenario concerning the fictive Component A which is produced in Warehouse Small but kept in stock and consumed in Warehouse Big.

  • The transfer time between Warehouse Big and Warehouse Small is 1 day. This is setup in the Warehouse transport time.
  • Warehouse Big got the follwowing settings in Item coverage:
    • A minumum level (security stock) is set to 100
    • Fulfil minimum is Today's date + Procurement time
    • The planned order type is "Transfer" and pointed agains Warehouse Small
    • The transfer lead time is not overriden. The transfer time of 1 day coming from the warehouse setup is correct.
  • Warehouse Small is setup in item coverage to be able to support the production of the item.
  • The securtiy stock level and other demands in Warehouse Big is generating transfer requirements from Warehouse Small to Warehouse Big and planned production orders are generated at Warehouse Small to fullfill the transfer demands. There are no problems at the Warehouse Small side.
  • The current stocklevel of Compontent A at Warehouse Big is 120 Pcs

With this setup when Component A is supplied by Transfer with a short transfer lead time, How could I be able to consume all of the quantity held in stock (120) when running the MRP?

In the Net requirements of Component A for Warehouse Big I will see 120 Pcs On-hand but I will also see the "Safety stock" demand row, one day a head "stealing" 100 pcs from the On-hand quantity of 120.

I'm aware of how the Today's date + Procurement time works and the fact that a Safety stock demand will be generated after the Procurement time. In this case the item is supplied by transfer and then the procurement time equals my transfer time of 1 day. So right now I'm only able to use my security stock of 100 for one day.

I could of course increase the transfer time which would let me consume the safety stock for a longer time but then the transfer orders would be messade up adding a too long lead time between the warehouses.

 

It's really bad that AX is using the same parameter for lead time between warehouses as for consuming the on hand inventory before saftey stock demand appears.

Does someone have an idea of how I could solve this kind of situation?

 

If something is unclear I will provide more details.

Looking forward to hear your thoughts an ideas about this challenge :)

 

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  • Suggested answer
    gkumar Profile Picture
    gkumar 740 on at

    Hi Mr W,

    Can you test you scenario  by setting  Fulfill minimum to First issue and Receipt margin of 1 day.

  • Mr W Profile Picture
    Mr W 77 on at

    Hi,

    Thank you for your reply.

    I've tested this and the safety stock demand appeared one day after the next issue.

    This is however only a small improvment because the "First issue" could be in one week or the next day. The components where we have the biggest problems  are basically consumed almost every day by "Production lines" and then the impact of using "First issue" would be very little I guess.

    Any other idea, you seem to have knowledge in this area and I would be very thankful for more ideas to test.

  • gkumar Profile Picture
    gkumar 740 on at

    Hi Mr W,

    I guess Fulfill minimum setting to First issue with a combination of Receipt/issue margin will cover your requirement.,

    Can you arrive at Receipt/Issue margin considering the Procurement/Production lead time + Transfer lead time.

    Try 2 or 3 items with different lead time to derive an optimum combination.

  • Mr W Profile Picture
    Mr W 77 on at

    Thank you for your reply.

    By setting the receipt/issue margin in combination with "first issue"  I think I could solve the problem with the safety stock demand.

    The backside is that the changes of the receipt/issue margin would also affect all future planned transfers. Instead of the real one day lead time, I would end up with a too long lead time. By solving the challenge with the safety stock demand, I think would create another problem.

    Perhaps we need to investigate if there is a possiblity to create some kind of customization to solve our needs.

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