Planning uses inventory, I don't want this

ajhvdb

Hi,
I've setup the item as
- Reordering Policy = Lot-for-Lot
- Include Inventory = No

If I run the planning it groups all orders to 1 production order = good

If the 3 orders must produce 3 x 10000 = 30000 pieces and I've have 5000 in inventory
the production order still suggests 25000, is this a bug?

Alex_Chow

Are there outstanding production orders that has this item?

ajhvdb

No, there are no production orders at all. I thought it was related to a customization but in a demo CRONUS db is not working too.

Alex_Chow

You may want to check the dates of when the product is required. If the requirement is further out than the planning period, it will not be taken into consideration.

AdamRoue

To include the inventory you need one of these to be true:

i) Using SKU's
ii) The components at location in teh manufacturing setup is defined as the location where the inventory and demand is - your main warehouse.

Without this location setup it is not sure where to exclude inventory from and therefore includes it.

ajhvdb

Thx, for the hints where to look.

A consultant tested this in 5.0 SP1 and there it was NOT using the inventory but something else that worked in 5.0 didn't work in 5.0 SP1. Aargh. Now I need to compare the 5.0 production objects to 5.1 and find the problem.

AdamRoue

It will be the sales order location being different to the components at location - trust me

KoenK

AdamRoue wrote:

It will be the sales order location being different to the components at location - trust me

Adam,

Are you referring to components needed to produce the items, or to the items themselves?

AdamRoue

I am referring to why lot-for-lot is not working without inventory - if SKUs are not used for this to work the "demand" being fulfilled whether production or sales will need to have a location set to the same as the components at location as this is the location it runs teh planning metric from when SKUs are not used.

KoenK

Hi, you are talking about Components I guess. We are not.

We are talking about items being in stock and therefore not produced, even when the "Include inventory" is set to NO.

Maybe we don't understand each others problem/solution, sorry for that.

Again, we are NOT talking about using components from stock.

AdamRoue

Let me explain

I sell item A I have 40 in stock.
I set the policy to lot-for-lot and NOT include inventory
I load a sales order for 80 on the BLUE location

i) Scenario A - "Components at Location" = BLUE - Suggestion is 80
ii) Scenario B - "Components at Location" = Anything except BLUE - Suggestion is 40

The compnonents at location has nothing to do with components - it is how planning plans in a multi location environment when SKUs are not used.

Try my suggestion and you will see it working or not depending upon your setting.

apanko

Hello

Read the topic Planning with/without Locations at Online help.
It contains the explanaition why planning system sometime uses Reordering Policy = Lot-for-Lot, Include Inventory = Yes, and all other planning parameters = Empty.

KoenK

Adam, Apanko,

Got it working now, thanks! Both your hints were helpful.

Got another question now, but I'll start a new topic on that. Thank again!