We are facing an issue in Dynamics 365 Supply Chain Management Master Planning / Planning Optimization.
Our item structure is:
BM item = Finished item
BX items = BOM components
When we run Master Planning for the finished BM item, the system successfully creates a planned order for the BM item. However, the expected planning result for the BX components is not being generated.
Example
Finished Item
Product: BM0963
The planning run creates a planned order for BM096379, but the BX components from its BOM are not getting the expected planned supply.
Expected behavior
We expect the standard Master Planning flow to work as follows:
BM Finished Item demand
→ BM Planned Order
→ BOM Explosion
→ BX Component Dependent Demand
→ Planned Purchase / Production / Transfer Order for BX, depending on the component's coverage and supply setup.
Questions
Is this expected to work out of the box in D365 Supply Chain Management / Planning Optimization?
If the BM planned order is created but BX planned supply is not created, what are the key settings we should check?
Should we verify the BOM explosion / pegging first to confirm that dependent demand is being generated for the BX components?
If BX demand is generated but no planned order is created, which Item Coverage / coverage group / supply settings should we investigate?
Are there any Planning Optimization parameters or setup requirements that could prevent the BOM from being exploded to the BX level?

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