Multiple Locations vs. SKU locations

cveale

Would like some feedback on this scenario.

I have an item in multiple locations. I set up the locations, and do my item journals/PO's to populate the different locations with my one item.

There is also the option to set up different SKU's for each location. I would still do my item jouranl/PO to populate the different locations with my one item.

What would be the main reason for using SKU's (location SKU's) as opposed to not using SKU's ?

Thanks !

crisnicolas

The use of SKUs allows you to define different parameters on the same item per each location.

In one location the item may be replenished purchasing, while in some other location the item may be replanished by transfering stock from a main location, etc. etc.

Andwian

If you want to use multiple locations, use SKU.

Read the online help about multiple locations.

ara3n

also using SKU allows you to maintain different cost per location and thus when you do positive or negative adjust or return it will take location specific cost.

David_Singleton

Are SKUs still a separate granule? I remember they used to be relatively quite expensive. Over $7,000.

cveale

One more thing actually, the requisition worksheet only works with SKU's correct ? I like the idea of using the requisition worksheet to create PO's to replenish my stock, but this only works if I use SKU's correct ?

AdamRoue

cveale wrote:

One more thing actually, the requisition worksheet only works with SKU's correct ? I like the idea of using the requisition worksheet to create PO's to replenish my stock, but this only works if I use SKU's correct ?

Nope that is incorrect, you can plan perfectly happily without them, what you cannot do however is setup a replenishment route of a transfer order from location A to location B, which you would need SKU's for.

David_Singleton

cveale wrote:

One more thing actually, the requisition worksheet only works with SKU's correct ? I like the idea of using the requisition worksheet to create PO's to replenish my stock, but this only works if I use SKU's correct ?

Just to clarify.

Within the Requisition process, there is code that checks for an SKU. If non exists, then the system creates a temporary one on the fly, but the data all comes from the Item Card defaults.

From the user point of view, SKUs are not needed, but if you look at the code without going in detail it may look as if SKUs are.

Andwian

Quoted from NAV Online Help:

Planning for Locations without Using SKU

A reordering policy of Lot-for-lot + blank planning parameters will be applied automatically if planning for demand at a location that is different from the Components at Location field and SKU is not used. See more under Planning with/without Locations.

Planning with/without Locations
Concerning planning with or without location codes on demand lines, the planning system operates in a straight forward way when:

demand lines always carry location codes and the system fully uses stockkeeping units, including the relevant location setup.

demand lines never carry location codes and the system does not use SKUs or any location setup (see last scenario below).

However, if demand lines sometimes have location codes and other times do not, the planning system will follow certain rules depending on setup.

Demand at Location
When the planning system detects demand at a location (a line with a location code), it will behave in different ways depending on 3 critical setup values.

During a planning run, the system checks for the 3 setup values in sequence and plans accordingly:

Is there a check mark in the Location Mandatory field?

If yes, then:

Does SKU exist for the item?

If yes, then:

The item is planned according to planning parameters on the SKU card.

If no, then:

Does the Components at Location field contain the demanded location code?

If yes, then:

The item is planned according to planning parameters on the item card.

If no, then:

The item is planned according to: Reordering Policy = Lot-for-Lot, Include Inventory = Yes, all other planning parameters = Empty. (Items using reordering policy Order remain using Order as well as the other settings.)

Note: This "minimal alternative" only covers the exact demand. Any planning parameters defined are ignored.

See variations in the scenarios below.

Demand at "Blank Location"
Even if the Location Mandatory field is checkmarked, the system will allow demand lines to be created without a location code – also referred to as "BLANK location”. This is a deviation for the system because it has various setup values tuned to dealing with locations (see above) and as a result, the planning engine will not create a planning line for such a demand line. If the Location Mandatory field is not checkmarked but any of the location setup values exist, then that is also considered a deviation and the planning system will react by outputting the "minimal alternative":
The item is planned according to: Reordering Policy = Lot-for-Lot (Order remains Order), Include Inventory = Yes, all other planning parameters = Empty.

See variations in the scenarios below.

Scenarios
Setup 1:

Location Mandatory = Yes

SKU is set up for RED

Component at Location = BLUE

Case 1.1: Demand is at RED location

The item is planned according to planning parameters on the SKU card (including possible transfer).

Case 1.2: Demand is at BLUE location

The item is planned according to planning parameters on the item card.

Case 1.3: Demand is at GREEN location

The item is planned according to: Reordering Policy = Lot-for-Lot (Order remains Order), Include Inventory = Yes, all other planning parameters = Empty.

Case 1.4: Demand is at BLANK location

The item is not planned because no location is defined on the demand line.



Setup 2:

Location Mandatory = Yes

No SKU exists

Component at Location = BLUE

Case 2.1: Demand is at RED location

The item is planned according to: Reordering Policy = Lot-for-Lot (Order remains Order), Include Inventory = Yes, all other planning parameters = Empty.

Case 2.2: Demand is at BLUE location

The item is planned according to planning parameters on the item card.

Setup 3:

Location Mandatory = No

No SKU exists

Component at Location = BLUE

Case 3.1: Demand is at RED location

The item is planned according to: Reordering Policy = Lot-for-Lot (Order remains Order), Include Inventory = Yes, all other planning parameters = Empty.

Case 3.2: Demand is at BLUE location

The item is planned according to planning parameters on the item card.

Case 3.3: Demand is at BLANK location

The item is planned according to: Reordering Policy = Lot-for-Lot (Order remains Order), Include Inventory = Yes, all other planning parameters = Empty.

Setup 4:

Location Mandatory = No

No SKU exists

Component at Location = BLANK

Case 4.1: Demand is at BLUE location

The item is planned according to: Reordering Policy = Lot-for-Lot (Order remains Order), Include Inventory = Yes, all other planning parameters = Empty.

Case 4.2: Demand is at BLANK location

The item is planned according to planning parameters on the item card.



As you can see from the last scenario, the only way to get a correct result for a demand line without a location code is to disable all setup values relating to locations. Similarly, the only way to get stable planning results for demand at locations is to use stockkeeping units.

Therefore, if you often plan for demand at locations, it is strongly advised to use the Stockkeeping Units feature.