Manage S&OP Variations with Shelf Life Items using Microsoft Dynamics AX 2012

Editor's Note: As part of Dr. Hamilton's latest series of articles about solving S&OP scenarios using Dynamics AX 2012, this three-part article focuses on some of the unique requirements for those products with process manufacturing characteristics. These requirements represent slight variations in the baseline model for solving common S&OP scenarios. This first article covers S&OP variations for items with shelf life.

Sales and operations planning (S&OP) game plans represent a cornerstone for effective supply chain management in a manufacturing business.  The nature of an S&OP game plan depends on several factors such as the need to anticipate demand for an item and the need for linkage between a sales order and the item's supply order.  A given company typically has several major scenarios where each scenario employs different key elements in the S&OP game plan.  These common S&OP scenarios have been summarized in a previous series of articles, and they provide the foundation for understanding variations.

Several S&OP variations must be considered for those products with process manufacturing characteristics, such as food and chemicals.  These unique requirements include items with shelf life dates or critical lot attributes, and they primarily impact the key S&OP elements for sales orders and master scheduling logic in Microsoft Dynamics AX 2012.  Other unique requirements reflect production characteristics -- such as co-products, substitute ingredients, production sequencing and bulk/pack scenarios - which primarily impact the key S&OP elements for master scheduling logic and planned batch orders.

This three-part article will review several S&OP variations that can be applied in AX 2012 for products with process manufacturing characteristics and the ...