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Onhand inventory wont be considered (pegged) by the MRP for safety stock

Posted on by 50

I have an item which has stock. For some reason, the MRP only pegs the onhand towards the actual sales orders or forecasts and then the MRP creates seperate POs for the safety stock. This PO is too early since it should not be needed before the next demand forecast. 

I am also wondering why the planned PO for the safety stock is after (1092) the later planned PO (1091)

The "Fulfill Minimum" is set to be as per todays date.

Can anyone explain what the problem is?

0243.1.jpg

  • Koldere Profile Picture
    Koldere 50 on at
    RE: Onhand inventory wont be considered (pegged) by the MRP for safety stock

    Hi Guy, thank you so much for your answer, that fixed the problem. For some weird reason I had to enable the licence configuration for retail (full feature set and HQ retail) - but it fixed the problem. I may recomend a full CU-upgrade to the system in the end. But it is really good to know that the problem comes from a bug. Thank you so much!

  • Koldere Profile Picture
    Koldere 50 on at
    RE: Onhand inventory wont be considered (pegged) by the MRP for safety stock

    Hi, thanks for the response. The positive days has been set to 365, so I don't think that is the issue.

    I have a 365 contoso environment that I am testing against and that does not have the same issue. Here the safety stock is pegged against the onhand stock.

  • Koldere Profile Picture
    Koldere 50 on at
    RE: Onhand inventory wont be considered (pegged) by the MRP for safety stock

    I am trying to implement the hotfix you proposed but I seem to be lacking in rights. I will give you an update when I get access :)

  • Suggested answer
    guk1964 Profile Picture
    guk1964 10,877 on at
    RE: Onhand inventory wont be considered (pegged) by the MRP for safety stock

    Safety stock is itself a demand  and I thus pegged against itself - i.e. it is a demand that  reserve that stock immediately -  so as to ensure an urgent resupply. .It does not stop you using it but mrp assumes it can't because it is reserved for the master scheduler  it doesn't know  about e.g. maybe an emergency order may come in, or maybe you just want to keep making to stock for no reason other than to keep the factory busy.

    Another factor may be positive days setting - if you have not set a positive days value then mrp assumes that any new demand needs a new order i.e. positive days is the days window in which you plan to use inventory, and any demand after that  will be satisfied with a future planned order rather than be pegged against on hand inventory. If positive days is zero then it will mean new demand triggers a new order.

  • Verified answer
    Guy Terry Profile Picture
    Guy Terry 28,378 on at
    RE: Onhand inventory wont be considered (pegged) by the MRP for safety stock

    I have seen safety stock cause planned supply orders that are too large and too early, which I did not see when I built the same scenarios in an environment with very recent R3 code. I assumed it was because of this hotfix:

    fix.lcs.dynamics.com/.../Details

    Master planning improvements in relation to safety stock feature including fixed issues

  • Koldere Profile Picture
    Koldere 50 on at
    RE: Onhand inventory wont be considered (pegged) by the MRP for safety stock

    Hi, and thanks for the response. I tested it but it does not solve the issue completly. The first order is moved to the first issue but if I try with another dataset I can see other issues.

    The question is still, why wont it peg safety stock against on-hand?

    In this picture you can see how one too many planned PO is created (see the highlighted line) since it wont drop below the minimum of 10.000 with the requirement of 9.000. It is like the MRP has run, and then just done one more round to cover the safety stock (seperately)

    8713.3.jpg

  • guk1964 Profile Picture
    guk1964 10,877 on at
    RE: Onhand inventory wont be considered (pegged) by the MRP for safety stock

    If you want the system to 'bite into' safety stock, then consider the parameter First issue when setting the minimum so that MRP calculates the minimum quantity, only when there is an issue transaction for the item. When there is no ‘demand’ for the item to consume inventory, a planned order will not be generated even if the inventory is below minimum. However when an order is triggered the planned quantity will include not only the new demand but also what is needed to top up the minimum..

    The default setting is “Today’s date.”  which means the safety stock show up first when requirements are calculated and that can cause non-optimized futures messages.

    For many the option  Today’s date + procurement lead time is a good compromise. This  moves the safety stock requirement date to today’s date plus the procurement lead time (notice only the procurement lead time I considered.)  Mrp then plans to consume on-hand inventory for production or sales orders due in the interim  and then by safety stock at the future date determined by the lead time.  So on hand stock is available to orders, and your safety stock is planned to be topped up after the appropriate order lead time.   

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