Replenishment System

fecarnot

Hi All,

I'm trying trying to understand the setup of the replenishment system in the Item Card.

Here is the case :

Version : Navision FR 4.02

Item N° : 70061
Reordering Policy : Maximum Qty.
Reorder Point : 200
Maximum Inventory : 1000
Inventory : 400
Qty. on Sales Order : 2612.

In the Requisition Worksheet, the theorical stock (400 - 2612) is far under the reorder
point, so the "Calculate Plan" generate 2 lines :
-> 1000 (maximum stock)
-> 2212(to fullfill the needs).
The Order Tracking is quite weird but the quantities are logical.

If I modify the sales order to 712, the "Calculate Plan" generate 1 line :
-> 1000
312 items are missing to meet the requirements !

I do not understand the logic behind this calculation.

Any ideas ? Any (clear and business orientated) documentation available ?

Thanks in advance.

Miklos_Hollender

Hm, it's truly interesting. Theoretically, the second version is correct, however weird it might seem. The logic of to-maximum reordering is that you have this much space in the warehouse - if you would need more, because of sales orders, well, that's just bad luck, because you could not store it anyway, you'd need to get a bigger warehouse for that. I don't really understand the first version. Maybe if the demand is higher than the maximum then it assumes it will be shipped directly to the customer anyway.
Maybe.

Miklos_Hollender

Anyway, the Supply Chain Technical White Paper (don't worry, it's not SO technical) explains it nicely, and it can help decide whether a change in planning parameters is enough or you need a customization:

http://www.mibuso.com/dlinfo.asp?FileID=382

This pack of white papers (the technical ones) is actually one of the most important sources of infomation on how the complicated areas (supply planning, warehouse, item tracking, costing etc. ...) of Navision actually works - it cannot be figured out from the manuals. I think these are a must for consultants and serious end users - still so few people have heard about it. Please help spreading the word :-)

fecarnot

Thanks Miklos.
I think that I already had a look at these documents.
Sadly, they are Navisionely written, meaning not business orientated.
I will have a look at it again.
Coming back to the point, you mean that with "Max Inventory", Navision should not take into account the sales order, did I understant it right ? The online help does not explain it this way (but it would not be the first time that the Online help is wrong ).