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Microsoft Dynamics NAV (Archived)

NAV 2013 MRP problems

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Hello,

We are in the process of implementing a new NAV 2013 system, moving on from a different ERP system.

One area that we can't get working reliably is MRP.

The results we are obtaining from the production planning worksheet (regenerative plan) are unusable. We don't use forecasts - our inventory control is based on setting reorder points against relevant items. We set the 'Minimum Order Quantity' field using our economical batch quantity for each item. Our items generally have BOM & Routing, and may have multiple levels.

Scenario 1 - 'Lot-for-Lot' reorder policy

If we set all items to 'Lot-for-Lot' reordering policy, & set our reorder point using the 'Safety Stock Quantity' field (as the 'Reorder Point' field is not used with this method), then the planning worksheet produces a reliable suggested order list in terms of order quantities, but because most order suggestions are triggered by inventory falling below the safety stock level*, the suggestions are mostly flagged as an 'Exception', and the due date is set to today, regardless of whether we have raw material or sub-components in stock. Order suggestions for raw material and sub-assembly components are then scheduled backwards, so e.g. NAV tells us that we should have purchased a component 6 weeks ago.

We have been unable to change this behaviour, so the dates being suggested by NAV are useless - we need to know when we can actually make the items, planning forwards, not looking backwards!

* e.g. An item has safety stock = 100, inventory = 110, and we ship a sales order for 20. We still have 90 in stock, which is sufficient until we can make some more in 6 weeks time, but NAV flags an 'exception' in the planning worksheet and sets the due date to today.

Scenario 2 - 'Fixed Reorder Qty.' reorder policy

If we set all items to 'Fixed Reorder Qty. reorder policy, NAV requires entry of a 'Reorder Quantity' against each item - we cannot leave it as zero.

We can set the 'Reorder Point' field with this policy, so 'Safety Stock' is set to zero. The results of the planning worksheet's date suggestions are generally OK (unless an item falls below the safety stock qty., even though it is set to zero), and the quantity calculations for genuine demand are also generally OK. However, instead of maintaining stock at our reorder point, NAV wants to keep stock above our reorder point (even if reorder point = 0); so NAV suggests that we order every item on our system. Even if the reorder point is set to zero, and there are no commitments for an item, NAV suggests that we order 1, because we have set the 'Reorder Quantity' field to 1 (because NAV won't allow us to leave it set to zero!).

We therefore end up with a ridiculously long list of nonsense suggestions to order items that we don't actually need.

 

Has anyone else experienced similar problems using either of 'Lot-for-Lot' or 'Fixed Reorder Qty.' reorder policies?

Are there any solutions available? I don't mind if we have a solution based on 'Lot-for'Lot' or 'Fixed Reorder Qty.' as long as it works.

Any help would be gratefully received!

Thank you.

Mark Woodward

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I have the same question (0)
  • Aleksandar Totovic Profile Picture
    16,765 on at

    MRP in NAV always works backward. We have desired quantities on specific time, and NAV calculate backward plan. NAV cannot make forward MRP. If you want some like that, you must customize this functionality.

    I suggest you read more details about master planning in NAV. You can try with msdn.microsoft.com/.../hh173769(v=nav.70).aspx or with Mfg. training materials.

  • Suggested answer
    Community Member Profile Picture
    on at

    Thanks Aleksandar.

    I have read through he links you suggested, but these do not help to meet our basic requirements.  We do not wish to make use of forecasts, and we also don't want to create production or purchase orders directly from sales orders, which seems to be the main function of the order planning window.

    If NAV is truly incapable of planning forwards (how can this system be called 'MRP'?) are there any third party MRP tools available which can work with NAV?

    Mark

  • Community Member Profile Picture
    on at

    Hallo,

    we have the same Problem on NAV 2013 or NAV 2013R2. Look at following Answer from Microsoft.

    Reordering when Stock is on the Reorder Point level

    The Planning logic was modified to trigger the replenishment for a reorder point item when stock is on the reorder point level and not when it is below. Earlier versions triggered this when stock was below the reorder point. However, this was not compliant with planning standards (i.e. APICS). From a business scenario, addressing this change in the logic was not only to be aligned with planning standards, but it was also required to ensure replenishment was done without exceptions. For example, the reorder point is calculated based on the average demand within the replenishment lead time. With this, the reorder point level stock is enough to cover any demand coming in with the lead time. However, if we trigger the replenishment not on the reorder point but later/below than that, stock will be less than expected (below reorder point) which means that we might not have enough stock to cover the average demand within lead time.

    This is the reason for the result in NAV 2013; having Inventory=0 and Reorder Point=0, leads to a planning proposal.

    Furthermore, the change was introduced in order to align NAV 2013 with international supply chain standard processes.

  • Suggested answer
    Aleksandar Totovic Profile Picture
    16,765 on at

    I wrote a lot of articles about inventory planning on blogs on: community.dynamics.com/.../inventory-planning-in-nav-toc.aspx

    I think, you can find help here.

  • Community Member Profile Picture
    on at

    [quote user="Mark87"]

    Hallo,

    we have the same Problem on NAV 2013 or NAV 2013R2. Look at following Answer from Microsoft.

    Reordering when Stock is on the Reorder Point level

    The Planning logic was modified to trigger the replenishment for a reorder point item when stock is on the reorder point level and not when it is below. Earlier versions triggered this when stock was below the reorder point. However, this was not compliant with planning standards (i.e. APICS). From a business scenario, addressing this change in the logic was not only to be aligned with planning standards, but it was also required to ensure replenishment was done without exceptions. For example, the reorder point is calculated based on the average demand within the replenishment lead time. With this, the reorder point level stock is enough to cover any demand coming in with the lead time. However, if we trigger the replenishment not on the reorder point but later/below than that, stock will be less than expected (below reorder point) which means that we might not have enough stock to cover the average demand within lead time.

    This is the reason for the result in NAV 2013; having Inventory=0 and Reorder Point=0, leads to a planning proposal.

    Furthermore, the change was introduced in order to align NAV 2013 with international supply chain standard processes.

    [/quote][quote user="Mark87"]

    Hallo,

    we have the same Problem on NAV 2013 or NAV 2013R2. Look at following Answer from Microsoft.

    Reordering when Stock is on the Reorder Point level

    The Planning logic was modified to trigger the replenishment for a reorder point item when stock is on the reorder point level and not when it is below. Earlier versions triggered this when stock was below the reorder point. However, this was not compliant with planning standards (i.e. APICS). From a business scenario, addressing this change in the logic was not only to be aligned with planning standards, but it was also required to ensure replenishment was done without exceptions. For example, the reorder point is calculated based on the average demand within the replenishment lead time. With this, the reorder point level stock is enough to cover any demand coming in with the lead time. However, if we trigger the replenishment not on the reorder point but later/below than that, stock will be less than expected (below reorder point) which means that we might not have enough stock to cover the average demand within lead time.

    This is the reason for the result in NAV 2013; having Inventory=0 and Reorder Point=0, leads to a planning proposal.

    Furthermore, the change was introduced in order to align NAV 2013 with international supply chain standard processes.

    [/quote]Hello Mark87,

    Thanks for your input - it's good to know we are not alone in having these problems.

    Microsoft might be satisfied with that answer, but to us it is nonsense. The MRP system might comply with APICS standards, but it is of no use to us in the real world.

    We have had zero response from Microsoft on this issue - have you had any success in finding a workaround or alternative MRP tool?

  • Community Member Profile Picture
    on at

    Hallo  Aleksandar,

    thank you for this link. I will read it. But i think you don' understand our problem. Look at secanrio 2.  If the Reorder Policy = Fixed Reorder, the reorder point is set to zero and the Inventory of this Item is zero, but no any demand exist, NAV will suggest an Purchase. Thats not the real world. The inventory value from our customer will explode.

  • Community Member Profile Picture
    on at

    Hi Mark,

    I my mind lot-for-lot is used when you want to produce based on your demand and not have inventory (other than the safety stock). And fixed reorder qty. is used if you want to carry inventory of the item and replenish based on a reorder point.

    So, using fixed reorder qty. and set the reorder point to 0 and only get suggestion to replenish when there is a demand sound to me like it should be a lot-for-lot.

    And your scenario 1 sounds to me like it should be fixed reorder qty, instead of lot-for-lot, since you want to carry inventory and replenish when you fall below a certain point.

    NAV calculates forward if you reach the reorder point.

  • Community Member Profile Picture
    on at

    Hello Olof,

    Thanks for your reply, but I don't really understand what it is you suggest we try instead.

    NAV will not allow us to set reorder point = 0, hence the problem with fixed reorder qty. method.

    NAV doesn't use reorder point with lot-for-lot method, only the safety stock qty. - when demand is triggered based on the safety stock qty. NAV always treats it as an "emergency" order and does not plan forward.

    Please advise if I have misunderstood your suggested answer?

    Regards,

    Mark Woodward

  • Verified answer
    Community Member Profile Picture
    on at

    Hi Mark,

    My suggestion is to use lot-for-lot for those SKUs that you want to have a reorder point = 0 (because you are saying that you don't want inventory and only replenish when there is a demand, which to me is lot-for-lot).

    For the SKUs where you want a reorder point, my suggestion is to use the fixed reorder qty. and set the reorder point (since this schedules forward like you expect).

  • Community Member Profile Picture
    on at

    Hello Olof,

    Thank you for your explanation & consideration..

    I will aim to conduct some testing using your suggestion this week & will report the results here.

    Regards,

    Mark Woodward

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