Supply sales orders with Operations Planning
We use master planning in Microsoft Dynamics 365 in order to be sure that products are available when they are needed at the same time that economic efficiency is optimized. In order to archive that the logic has to be able to deliver the needs of our Supply Chain and keep low inventory.
Microsoft Dynamics 365 provides both long-term forecasting and short-term planning, in this post we are going to show a basic example of master planning in order to be able to deliver a sales order of blades to the USA subsidiary of EWR.
The following picture taken from Microsoft Learn, shows the information that affects master planning and shows the expected input and output of the whole process. In order to learn more about the pictured elements I suggest you to go to the course "Configure and use master planning in Dynamics 365 Supply Chain".
EWR is a Wind Turbine manufacturer based in Germany having a factory in Rockstock near the North Sea. There they manufacture the blades and also the nacelles. For the USA operations another company was created in America for tax and cost reasons but this time they need urgently 3 blades from a new generation Wind Turbine that are only manufactured in Germany. So a sales order is created in EWR Germany to its subsidiary in USA with 6 Blades.
I already have 3 blades in inventory in the WIP warehouse that I can ship to the USA but I expect Master Planning to plan a production order for 3 blades.
In the following picture we see the BOM of a Blade, where RM00010 is Resin, RM00011 is fiber glass and RM00012 is foam board.
Next I will check what looks like my current inventory of those products in order to see what would be the expected behaviour of master planning for my sales order. Immediately I see that I would have enough glass fiber and foam boards in order to produce the blades but I am pretty short of resin. So short that I do not have any more in stock!
Next we go to the sales line of our sales order and we go open the Net Requirements form that we find in Product and supply, Net requirements.
Here we update the Master Planning, with regenerative planning method so master planning is calculated for this sales order line. We can also execute master planning for the whole system on Master Planning, Master Planning, Run, Master Planning but this would be a process that we normally put in the batch to run every night or at weekends.
Coming back to our results in the Net Requirements form we see that the system sees that we already have 3 blades on-hand and 3 more have to be produced as the item was set-up as default order type production.
If we go to the planned orders form we will also see that the system also examined the BOM of the item to be produced and suggested an additional purchase order of 60 liters of Resin, which are the needed for 3 blades.
That was pretty easy and very useful, hope it inspired you to get more into master planning in Microsoft Dynamics 365. Next I recommend you to look at this video from Arberla Technologies about action and delay messages.
Below I leave you a video with a recap of the whole process described in this post.