D365 Planning Optimization – Planning Priority
Posted on: November 19, 2022 | By: David Occhionero | Microsoft Dynamics AX/365
Planning Priority – Base Configuration
In this blog post we are going to briefly walk through some of the setups required for the new planning priority functionality in Planning Optimization. This blog will be the first in a series as there will be several business scenarios that will need to be analyzed once the new service is in effect. If you are investigating whether or not Planning optimization is right for your organization, please run the optimization fit analysis in Master Planning first. There may be configuration and setup in your D365 environment that may prohibit the organization from running it. After running the analysis see which features are not supported and verify when they will be in production based on Microsoft’s roadmap. This should give your organization a clearer roadmap for an estimated release date into production.
Before configuring, a user with appropriate access will need to turn on the feature through the feature management workspace. Once this is turned on, you will now see new a new setup screen under Master Planning –> Setup –> Planning priority models.
Planning Priority Models
The header section will contain a priority model that will be used on the coverage code. Note: There is a new drop down called “priority” on coverage groups. When this is selected, users will be able to select a priority model. From the header section users will also be able to select a priority calculation method. There are two methods, Priority Ranges, and Percent of maximum inventory quantity. The priority ranges allow users to assign a priority value to predefined ranges in the middle of this form. The percent of maximum inventory quantity uses a calculation to come up with supply. There is also a field called “consider demand priority” toggle. This basically tells you that if there is an entered demand line, a supply line’s priority cannot overtake the demand line’s (Default or overridden) priority. The planned order creation field can be used as a grouping strategy for supply orders. It is essentially asking the user if separate supply orders should be created to fulfill the predefined ranges.
Percent of maximum inventory quantity
The system will use the following calculation and come up with an appropriately calculated planned supply order.
(This comes directly from Microsoft’s learning page) https://learn.microsoft.com/en-us/dynamics365/supply-chain/master-planning/planning-optimization/priority-based-planning)
Percentage of maximum = (Net flow position × 100) ÷ Maximum inventory quantity value from the item coverage
Where, Net flow position = On-hand + On-order – Qualified demand
- On-order is the expected supply.
- Qualified demand represents the net requirements that have the requirement date within the planning time fence.
These ranges will be established based on the predefined to and from quantities. You can also establish a percentage here as well which will only impact the Minimum inventory quantity, reorder point, and maximum inventory quantity. This will plan to the values that are entered in item coverage for minimum, reorder point, and maximum.
This setup screen is giong to drive most of the priority values you will see in planned orders. In this screen you will be able to apply default priority to different types of orders that are generated during MRP. There is also a priority field for Purchase and Transfer orders which applies to manually created purchase and transfer orders. There is also a priority field set for production orders, but according to Microsoft’s tech talk production orders are not included in this release of planning prioritization. It will be released in a future release that does not yet have an ETA. The key areas that will be in this blog series will be sales orders, demand forecasts, and fulfilling stocked inventory.
Now that we’ve looked at the different fields in Planning Priority Models we will continue the planning prioritization in the next blog post. Once it is published, we will put a link to it from this blog.
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