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Supply chain | Supply Chain Management, Commerce
Answered

Planned transfer order and planned purchase order should be created to meet demand

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Posted on by 175

Hi All,

I have this scenario below:

Warehouse A - On hand as of 7/1/2020 = 0 pcs

Warehouse B - On hand 7/1/2020 = 50 pcs

Now I have a demand of 60 pcs for Warehouse A on 7/20/2020, I am expecting that the system will create the following planned orders:

Planned transfer order of 50 pcs from Warehouse B to Warehouse A so that inventory in Warehouse A would be 50 pcs in total and a,

Planned purchase order for 10 pcs to be delivered to Warehouse A to bring up inventory to meet the demand quantity of 60 pcs.

I tried setting up, "Transfer order" planned order type and selecting the Warehouse B as the main warehouse in the released product > item coverage setup of Warehouse A, but it gave me the following planned orders:

Planned Purchase Order of 10 pcs for Warehouse B and a,

Planned Transfer Order of 60 pcs for Warehouse B to A, just wondering why the system suggested to purchase from Warehouse B and consolidate all the on-hand their before it gets delivered to Warehouse A.

I tried doing a reverse of that planned order type setup by creating a new item coverage line for the same item this time the item coverage is for Warehouse B and updated the general tab to set that warehouse B with a planned order type as "Transfer" and warehouse A as the "Main warehouse" now running the master planning it gave me the following planned orders:

Planned Purchase Order for 60pcs in Warehouse A.

Can you please shed light on this?

Thank you,

RIEL

  • Riel A. Mallorca Profile Picture
    175 on at
    RE: Planned transfer order and planned purchase order should be created to meet demand

    Thanks Mariano, good this thing this has been verified.

    Riel

  • Verified answer
    Mariano Melo Profile Picture
    332 Moderator on at
    RE: Planned transfer order and planned purchase order should be created to meet demand

    Hi Riel.

    I'm affraid that you cannot do that.

    MRP works as follow (for example):

    Demand or production Warehouse ( A) <--- Purchase or raw materials warehouse (B) <--- Vendor

    When you set up a type of transaction or the planned order type for each item you are telling the MRP that ALL the orders that are associated to that warehouse and item are for that type, for example, planned transfer orders.

    So Dynamics cannot create a Planned transfer order and a planned purchase order for the same item in the same warehouse, as you are expecting

    What you can do by standard, is the following:

    * Create a planned purchase order on warehouse B for 10 units and transfer order for 60 units to warehouse A

    or Create a purchase order for 60 on warehouse A.

    Hope it helps!

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