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Supply Chain Management forum
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Does Pegged Supply in a formula always create inventory reservations?

Posted on by 14
Our company recently implemented the use of Pegged Supply in our Formulas, so that when we firm up an order of a Finished Good, the system would automatically firm up the WIP production orders that are set as Pegged Supply in it's forumla. While this has increased efficiency from a scheduling standpoint, we are running into issues because of the inventory reservations that are being created between the Pegged Supply orders. There are some instances where the WIP order is finished, and we want to consume it against a different Finished Good order than it was originally Pegged Supply for, but get errors because of the reservations that are in place. The only solution is to manually remove the reservations each time this happens. Ideally, we would rather that these reservations are not made in the first place - is there any configuration that can be set where the Pegged Supply still firms up WIP orders for us, but does not create the inventory reservations in the background? Or where it allows us the flexible to consume these orders against other Finished Good orders? Or if not, is there a way to easily remove these reservations in mass?
 
As info, we are using advanced warehousing in D365 F&O.
 
Thanks in advance!
  • Suggested answer
    Bill Ngo Profile Picture
    Bill Ngo 231 on at
    Does Pegged Supply in a formula always create inventory reservations?
    Hi DH,
     
    The solution for the reservations are not made in the first place. Change your configuration so that you can set where the Pegged Supply still firms up WIP orders for us, but does not create the inventory reservations in the background.
     
    Please check Reservation option in your Production control parameters. Turn it to Manual.  
     
     
    Also check Production control parameters by site (if you have a setup).
     
    Rgds,
    Bill

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