The Safety stock in the system can be maintained by providing minimum and maximum quantity for an item. Item Safety stock (re-order level) is defined as item coverage in system at item master where purchase manager could input minimum stock level to re order site-wise as well as warehouse-wise.
By providing min/max for an item, when master planning runs the system will first check the on hand quantity of the inventory.
Case 1: If On hand quantity is available for an item, system will check the allotted minimum quantity. As the On hand quantity is equal or greater than allotted minimum quantity, then system checks the maximum allotted quantity. If the on hand quantity is equal or greater than the allotted maximum quantity, the system doesn’t take any action.
Case 2: If On hand quantity is available for an item, system will check the allotted minimum quantity. As the On hand quantity is equal or greater than allotted minimum quantity, then system checks the maximum allotted quantity. If the on hand quantity is less than the allotted maximum quantity, the system will create planned purchase order for the difference. That is On Hand Quantity subtracted from Maximum Quantity. The planned order will be considered as a safety stock once the material comes into the inventory.
Case 3: If On hand quantity is available for an item, system will check the allotted minimum quantity. As the On hand quantity is less than allotted minimum quantity, then system checks the maximum allotted quantity and will create planned purchase orders for the difference of the on hand and the minimum quantity and also consider the difference between the minimum quantity and maximum quantity.
The safety stock will be considered for the quantity generated between the minimum quantity and maximum quantity.
Case 4: If the ordered quantity is not available in the on hand quantity, the system will check the item coverage associated to the item. If the coverage code is Requirement, the system will check the allotted minimum quantity for that item and then system will create one planned order (ordered Quantity – On hand quantity) + (On hand quantity – Minimum Quantity)
The Safety stock in Case 4 will be considered as the difference between the on hand quantity and the minimum quantity.
Follow the below procedure to maintain the re order level in Dynamics AX.
Path: Click Product Information Management >> Common >> Products >> Released Products
1. Select an item
3. Click Plan on the header pane >> Item Coverage.
4. In Item Coverage form, Click New to add a new line and Enter Site and Product Dimension values in the Overview tab.
5. In General tab, select a Change Planned order type check box and Select Purchase order in the Planned Order Type Drop down field.
6. Now Select the Override Coverage group settings checkbox and Select Min/Max or Requirement in the Coverage Code drop down field.
7. In Coverage time fence field, Enter the time period, as a number of days from today’s date, during which requirements are calculated.
8. In Negative Days field, enter a number of days that are added to a requirement due date to define a time interval during which a planned receipt that is due can be used to fulfill the requirement.
9. In Positive Days Field, Enter the interval, as a number of days that are subtracted from a requirement due date to define a time interval during which a planned receipt that is due can be used to fulfill the requirement. The Positive days’ field would not be considered in master scheduling in case of Auto reservation enabled for sales order.
10. Now enter the minimum quantity to be maintained in the Minimum field and Maximum quantity in Maximum Field.
Note: For Coverage code- Requirement, Only Minimum quantity can be allocated and for Min./Max. Both minimum and maximum quantity can be allocated.
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