Stock and Purchase order quantities are not considered by PW

dppandit

Hi All,

We are using NAV2009' and facing a critical problem. Planning Engine is nether considering stock available nor the quantity on purchase order line. System is generating Purchase requirement for input items. Scenario is

1. Forecast as well as sales order for item FG of 50 (Monthly forecast-November) and 45 quantities respectively.
2. Planning parameters are reordering policy Fixed reorder and rest are all zero. Reservation is set-never at item as well as customer.
3. We are using SKU with no location mandatory in set-up and no component at location set-up.
4. For RM1 and RM2 (both are input items) we have set flushing method backward.
5. We have made a positive adjust for item RM1 of 75 pcs on date 30/09/2009. Purchase order for item RM2 of 65 quantity due on
20/10/2009.
6. BOM ratio for RM1:RM2 is 1:2 and both componenet items are backward flushed. we are also using bins.
7. After planning run system is generatin Production order of 50 and 45 pcs - Which is absolutely OK. our forecast due date is after
the sales order due date, so no issue here.
8. System is suggesting replenishment for RM1 is 50 and 45 pcs and for RM2 100 and 90 pcs. 65 pcs quantity for RM2 is shown
as cancel in planning worksheet.
9. In our views requisition should be 20 pcs for RM1 and 125 for RM2.

Any suggestions please

Thanks...

AdamRoue

The RM1 will be a location mis-match between your froecast, stock and demand. This is location specific - your blank on the SKU will drive demand downwards rather than alter it - on the top level replenishment what is the location, and then where is RM1 stock.

RM2 the purchase order should have come in 3 weeks ago, or again it is a location issue. As the suggestion is a cancel it is telling you to cancel it at the warehouse where you do not need it and load it at the warehouse where you do - the primary reason for this will be the lack of SKU rules set.

In summary balance your supply and demand by warehouses by setting the system up appropriately.

dppandit

Hi Adam,

Thanks for your quick feedback. We have checked everythign and there is no demand and supply, that is without the location. TO give you more insight on the case, We have done the under mentioned set-up.

1. Location Mandatory in Inventory set-up 'Yes'
2. Use forecast in location 'Yes'.
3. We are using Bins Mandatory at demand and supply Location. infect both locations are same.
4. We are using 'Order' as replenishmenr policy for item-FG and fixed reorder for RM1 and RM2 with all parameter set as zero quantity.
5. We are using Manufacuring policy 'Make-to-Order'.
6. We have defined lead time for item RM1-7 days and for RM2 no lead time.
7. Flushing Method backward for RM1 and RM2 and manual for FG item.

We have created a new Scenario, by removing all previous entries and made a fresh case.

1. Sales Order for item FG of 25 Nos., due on 5th November.
2. Positive Adjustment for item RM1 of 14 Nos on 1st November.
3. Purchase Order for item RM2 of 32 Nos due on 31th October.

Out put details.

1. System is generating Production Order of 25 Nos, due on 5th November and startind date in 3rd November#Because of routing set-
up#.
2. Purchase suggestion for RM1 of 25 Nos. Due date is 3rd November and starting date is 27th October #Due to 7 days purchase
lead time#.
3. Purchase suggestion for RM2 of 50 Nos. Due and starting date both are 3rd November.
4. Cancellation of 32 Nos of RM2 quantity with reference in order tracking of item RM2 purchase order.

Another issue is that, we have set Reserve as NEVR on item as well as customer, but planning worksheet lines are still suggesting reserve quantity as 25, 25 and 50 for FG, RM1 and RM2. No clue on this???

Please suggest.....

AdamRoue

Well RM2 is really your own fault, you ordered it when you did not need it, the cancellation is a valid call - only a reorder cycle would get a reschedule.

The RM1 must be to do with locations, there is nothing else it can be assuming you have told me your correct setup. I suugest you test the following. Remove the SKU records. Set the components at location in Manufacturing setup to be your forecast and sales warehouse. I will assume FG is made here. Then RM1 will be considered.

Are you an end user? If so get your partner to look into your setup and example, I assure you it is a setup issue, it is just difficult to solve it over a forum when there are so many inputs.

dppandit

Thanks a lot for your reply...Actually it was an set-up issue. When we were creating SKU from items card, the item set-up was not going as it is to SKU, because we did some customization to create item codes.

But i still have few doubts.
1. Why system should suggest me to cancel the Purchase ordre quantity and generate a new planning line of type purchase. My Purchase order due date is earlier then the start date of the Production and there is no purchase lead time is defined for RM2. From my point of view, system should generate 18 Pcs plannning requisition line and track 32 Pcs from the Purchase Ordre. In my earlier ERP, plannning engine was behaviour like this. Could you please give explaination on this..

2. We have chnaged the ordering policy to LFL and made as new case. We are facing an unwanted problem. After each and every
Planning run system is
a. Increasing the quantities of planning requisition line (only for purchasable items). This was happenin earlier also , when we were
using 'Order' as reordering policy and system was implicitly reserving the quantity and increasing the requisition for purchasable
items.
b. Another issue is that in order tracking of any planning worksheet line, system is showing reference of purchase order, which are
nowhere relevent to the planning suggest line. neither they are part of our BOM nor we have made SKU for these unwanted
items.
Only thing common is that all these items, purchase orders are made at the location, where we are running our planning engine.

Please suggest, so that we can move foreward....

AdamRoue

1. What is your reorder cycle - this is the period that is considered, if the earlier requirement is within this it would suggest a reschedule, otherwise it will suggest a cancel and reload - your issue is you loaded something you do not need, NAV can only suggest you cancel something you do not need - why are you tying all that cost up on a shelf when it is not needed?

2 a and b I guess come down to your setup and your supply and demand balance by location. Of course you are modfying it, so this could also be an issue, as it was earlier - of course if we do not know you have modified the area how are we to know how to suggest help? I would suggest you test in an unmodified database first.

dppandit

Thanks Adam,

My reorder cycle is zero and all quantity related fields are zero. After rigrous working on this particular, i have gor the clue. Firstb of all i would like to iterate that i need total of 50 Pcs of RM1 and 32 Pcs are on the Purchase Order. System is suggesting to cancel 32 Pcs and a new Planning line is created to Purchase 50 Pcs. Date for both are same, so no role of reorder cycle.

I have tried to chnage planning plexibility from UNLIMITED to none in purchase ordre and now planning engine has considered the 32 Pcs Purchase ordre and generated a new planning line to purchase 18 Pcs only. I am not known to the repurcussion of this, but time being this seems to be resolved. Planning plexibility field flow from Production line, hence we have chnaged this at production also.

If you have tried this? Can you please let me know that this will not create problem in future related with PLANNING RUN.

Others point we have also resolved, and will explore the solutions in my next feedback.

Thanks....

AdamRoue

Planning flaxibility is not an issue, as standard my memory says it is unlimited, this will then suggest action messages, if you make it inflexible it will not move any orders which will result in the cancel and new you saw.

dppandit

Hi Adam,

Yes you are right, Unlimited in the default option for Planning Flexibility.

As your another suggestion is concerned, Purchase orders (from Planning workshet to requisition worksheet and then Purchase orders) are getting created without any problem. What is analyze is that NONE is a better option for considering existing purchase orders.

Thanks & Regards