Working with the Replenishment form in Microsoft Dynamics ax 2009

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An alternative to the Master Plan Module in Dynamics AX 2009
This is customization of the Microsoft Dynamics AX 2009. This application is part of the enhancement made to the ERP system.
**Form Objective ***
- Calculate the required production order quantity for each stock items based on the PAR Level , Quantity Order and and the Available to promise.
- Suggest Production orders orders quantity based on preset rules.
- Help users understand the demand trends and grasp seasonality.
and more

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Working with the Replenishment form in Microsoft Dynamics ax 2009

  1. 1. Working with the Replenishment form in Microsoft Dynamics AX 2009 What Is PAR Level?    PAR level stands for “Periodic Automatic Replenishment.” PAR level refers to the exact amount of product you should have in stock to meet demands PAR levels are boundary markers in inventory levels that signal replenishment is necessary. Why use PAR Level?   If your PAR levels are set too low, you risk running out of stock. If your PAR levels are set too high, you may have more money invested in stock than is necessary. The Ideas behind the form design         1 Design the form exactly as per the users’ requirement Display the information as needed by the end-users Show inventory and future receipt status in real time Display inventory issues and receipt history to allow the users to make better replenishment decisions The lower pan of the form shows the pegging transactions that required inventory replenishment Principal fields Sales Orders Production quantity
  2. 2. The Replenishment form description Form path: Inventory Management >> Inquiries >> Stock Replenishment The form is divided into 3 sections: 1. The filters section 2. Item inventory level section 3. Pegging section A. The filters Section Fig 1: The filter section of the Replenishment form The users can use this section of the form to filter the inventory items by: - The item status which could be  1) Active,  2) Obsolete  3) All, to display all items regardless of their status - 2 No dialog check box: use this to disable the assistance dialog box. Inventory level status: o Critical , when the Required quantity is below the quantity on-hand and the scheduled receipt o Required, when the scheduled receipt quantity is greater than or equal to the required quantity. o Above PAR , when the required quantity is below zero
  3. 3. B. The inventory level section Overview Tab (trunked display) Note: Please note that the overview tab of the form has been trunked to allow screenshot image to fit the page. Field Item number Item name Available Description Identify item. Description of the item. Quantity available to promise. The Available quantity is the uncommitted inventory balance. Available = 'Tot. On-hand' - 'Physical reserved' Physical reserved Quantity reserved of the physical quantity On order Quantity on order Note : Quantity on order concerns only Sales Orders placed against this item In Prod Physical quantity scheduled to be received, but not posted Scheduled Scheduled production quantity. Note: The quantity scheduled here is dynamic. Once any production attached to this item starts the scheduled quantity will decrease. Par level Required Minimum on-hand, safety stock applying to the item when master scheduling Quantity needed to fulfill actual requirement. Required Quantity calculation= Total On-hand - Physically Reserved On Order- PAR level To Production Quantity to be sent to production To Production = Max (Required; Skid Qty; Min Inventory Qty.) Split 3 Use the Split option to split the quantity that is needed to be produced into 2 production orders.
  4. 4. Note: the split quantity = Max ( Split Qty; Min Inventory Qty; Skid Qty) Num. of Prod Number of production , this field helps creating multiple production orders at once Select This check box allows the users to "Firm" the quantity required and then create a production order Displays the quantity of cases on skid or pallet Net weight of one case Skid Net Weight ( we don’t consider here the tare weight ) Compute here the production order’s weight Skid qty Net weight Skid Weight Prod Weight Setup Tab Field Item group Description Item group that the item is attached to. Coverage group Buyer group Quantity per layer Net weight Par level Group that determines how a requirement is calculated for the item. Identification of the buyer group. Quantity per layer on standard pallet Net weight of inventory item for one inventory unit Minimum on-hand, safety stock applying to the item when master scheduling Total Tab Field Required Description Quantity needed to fulfill actual requirement. Required Quantity calculation= [Total On-hand] – [Physically Reserved] + [Scheduled]- [On Order]- PAR level Physical reserved Received On order Quantity reserved of the physical quantity Physical quantity received, but not posted Quantity on order Note : Quantity on order concerns only Sales Orders placed against this item On hand Physical quantity available from the inventory Here it is the total quantity on-hand for this item Started production quantity 4 Quantity of Finished Goods production started
  5. 5. C. The Pegging section The pegging section of the Replenishment form uses 4 tabs to display data about the finished good items’ transaction. Replenishment Form, Pegging Section Replenishment Form, Pegging, Overview Tab The Overview tab shows the different requirements (Productions, Sales Orders) that have that pending transactions. For example when a production is scheduled but not started or when a sales Order is not fulfilled. Fields Description Sales Order Sales Order number that is pegging with this items. Line Number Sales Order Line number Weekof This field displays the week when the transaction should be made. For example, for a particular sales order, the “week of” will be the week of the Requested shipment and for production the “week of” is the week the production should be rendered Production Date Scheduled Quantity 5 Production number pegged to this Finished Good item but not yet fulfilled Show the scheduled date Quantity scheduled or on the sales Order
  6. 6. Replenishment Form, Pegging, Future Tab Fields Production Sales Order Line Number Date Started Report remainder as Finished Description Production number pegged to this Finished Good item but not yet fulfilled Sales Order number that is pegging with this items. Sales Order Line number Shows the future message date Shows the started quantity for a particular production order Quantity remainder after report as finished Replenishment Form, Pegging, Week and Month Tabs 6
  7. 7. Pegging section showing weekly issues and receipts Pegging section showing monthly issues and receipts Pegging section showing monthly issues and receipts graph Working with the Replenishment Profile Form We will use the following example to understand how we should work with the form. Example: The sales agent or the sales manager opens the Replenishment form located at: Inventory Management >> Inquiries >> Stock Replenishment 7
  8. 8. She reviews the form and notices that there are several Items that are needed to be produced. If no action is taken the company will most likely go out of stock for these items. (Note: For the sake of simplicity we will choose only 1 item to be replenished.) She decided that she will create a production order for the Item “174612CL”. The table below summarizes the inventory status of the item “174612CL” Item Number 174612CL Available 300 Physical Reserved 8 On Order 123 In Prod* 0 PAR Level 235 Skid Qty 100 Based on the data in the table above, we can calculate the required quantity in order to avoid that the item goes out of stock. The required quantity = Required Required = Available + in Prod -On Order- PAR level Required =300+0-123-235= -58 Thus, we need 58 cases to keep the item at a safety stock level (or at PAR Level) But the Sales Manager doesn’t want to produce just 58 cases because it’s not cost effective. The company rules set the minimum production quantity at a Skid Qty. So, in our case the minimum quantity is 100 cases. This rule is already incorporated within the Replenishment application and “100” is shown in the “To Production” field. Item 174612CL inventory level status 8
  9. 9. In the pegging section of the form, you can see that 56+60+15=123 which is the total of cases on order. A. Create a Production Order To create the Production order for Item 174612CL, the sales manager will click on the select check box in the requirement section of the form. Then, she will make 2 clicks on Option>> Firm button. The first click is meant to review the quantity to be produced and the last click is to create the production order. Once the production order is created, a dialog box will pop up to notify her that the new production is created. Production order Creation notification. The pegging section now shows the production order created Production Order No. 195515P of 100 cases created B. Setup the Item’s Inventory order Now let’s consider another item named Item CHEL 55 CLR HP. The table below summarizes the inventory status of item “CHEL 55 CLR HP” 9
  10. 10. Item Number Available Physical Reserved On Order In Prod PAR Level Skid Qty CHEL 55 CLR HP 501 200 0 0 875 100 The Quantity that is displayed in the “To Production” field for item CHEL 55 CLR HP is 374 Cases, Because it is not cost effective to have just 375 cases, the company decided to produce at least 400 cases per lot. To do this, the Sales Manager needs to setup the inventory order for item CHEL 55 CLR HP. Procedure  Open the Replenishment Profile form Inventory Management >> Inquiries >> Replenishment Profile  Select the item CHEL 55 CLR HP and Click on the Setup button and finally click on the Inventory tab.  Next enter the following inventory order quantities Inventory Order Setting Multiple Min. Order Quantity Max. Order Quantity Standard Order Quantity 10 100 400 900 500
  11. 11. Item Inventory Setup Form After setting up the item, close the form and click on the Refresh button to refresh the data. The figure above shows that the “To production” quantity is 400 cases even though the required quantity is “375 cases” which is already above the 100 cases / skid. C. Create multiple Production Orders In this example the company wants to split the production into 3 production orders. Once the “To Production” quantity is split, the application will create 3 production orders to reflect this change. The table below summarizes the inventory status of item “CXP-3658XXX” Item Number Available Physical Reserved On Order In Prod* PAR Level Skid Qty To Production CXP-3658XXX 2 0 260 0 425 60 683 The figure below shows that there are 3 sales Order that need some attentions 11
  12. 12. Sales Orders pegging The Sales Manager decides that the 260 cases on order should have the priority in production activities and the remainder can be manufactured later and this is the reason why the Sales Manager wants to slip the “To production” quantity. The production rule is to manufacture bags by multiple of skid quantity. In this order case, the sales manager will not order 260 cases but 300 cases or 5 pallets. She also decided to create 2 more production orders (with lower priorities) of 240 cases each. Procedure: To do this, the Sales Manager selects the item CXP-3658XXX  Enters 300 in the split field  Enters 240 in the “To Production” field  Enters 2 in the Num. of Prod field  Clicks on the select field check box  Then clicks on Option >> Firm to firm the production Orders Production order preview In the figure above you can see that there are 3 production orders that will be created. The quantities will be 240, 300 and 240 respectively.  12 Next, she will click on Options>> Firm to finalize the replenishment process for this item.
  13. 13. The figure above shows 3 production orders of 240, 300 and 240 cases that have been created. This information can be viewed in the pegging section of the form. D. Working with Inventory Order Setting: Lot sizing Now let’s assume that the Sales Managers or/ the Planning Managers want to receive items within the inventory by following a certain rule. In our case, the user wants to create a new production every time the required quantity reaches a specific quantity. Scenario: The Sales Manager has set a lot of 100 cases for Item BP IDC92P620F. That means that the planner should create production orders by the multiple of 100 cases. The table below summarized the inventory status of item “CXP-3658XXX” Item Number Available Physical Reserved On Order In Prod* PAR Level Skid Qty To Production BP IDC92P620F 534 25 260 0 857 25 333 Based on the To Production quantity, the system should create 3 production orders of 100 cases the remainder 33 cases will be scheduled a time required How to do it On the Replenishment profile form Click on the Setup button. A customized Default Inventory Order Setup form will open 13
  14. 14. Default Inventory Order Setup Form, Inventory Tab Here we will work only with the Standard Order Quantity field. Let’s enter 100 as the standard order quantity form and close the Back to the Replenishment form, let’s refresh all the data by clicking on the Refresh button. Now you can see that: The “To Production quantity”: 100 and number of Production is 3 meaning that 3 productions of 100 cases will be created. To proceed: 14
  15. 15. - Click on the select checkbox Then click on Options>> Firm A summary will appear for a final update as shown below To order productions click on Options >>Firm Conclusion The replenishment form is a powerful application that can be used in Microsoft Dynamics AX to refill the inventory in a Make –To-Stock environment. There is more that can be done with the form, for example working with the maximum quantity in the inventory Order Setup Form the application will create only a production order up to that maximum and leave the reminder quantity for the next job. The Replenishment form jobs are integrated with the Production Table and Material Requirement table .Because this application is part of the Production Scheduling sub-module, there is no need to calculate the MRP form for each production order. 15

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