Master Scheduling and the Due Dates for Safety Stock Requirements in Microsoft Dynamics AX & 365 for Finance and Operations, Enterprise
Safety stock requirements often represent a critical element in the Sales and Operations Planning (S&OP) game plans for stocked products. For example, the safety stock quantity can be used to anticipate demand variations in S&OP games plans for end-items with demand forecasts and period lot-sizing logic, or it defines the minimum quantity when using Min/Max logic. Safety stock may also reflect an inventory buffer for key components of manufactured items, or for different warehouses in a multi-level distribution network.
In Microsoft Dynamics 365 Finance and Operations, Enterprise edition (termed D365FOE for short) and in previous versions of Dynamics AX, the safety stock due dates and quantities are reflected in the calculation of net requirements by master scheduling logic and in the generation of planned orders and action messages that provide meaningful information for decision making by planners and buyers. All too often, the inappropriate assignment of these due dates leads to confusing information for planners and buyers, and reduced effectiveness in coordinating supply chain activities.
This article reviews the four basic approaches for defining the safety stock due date in D365FOE using the "Fulfill Minimum" options. It also describes an alternative approach using the "Minimum Key" capabilities. It provides suggested guidelines about when to use each approach, and case studies illustrate the suggested guidelines. These considerations are reflected in the following sections within the article.
- Four Basic Approaches for defining the Safety Stock Due Date
- Basic Approach #1: Safety Stock Due Date of "Today's Date + Procurement Time"
- Basic Approach #2: Safety Stock Due Date of "Today's Date"
- Basic Approach #3: Safety Stock Due Date of "First Issue"
- Basic Approach #4: Safety Stock Due Date of "Coverage Time Fence"
- Alternative Approach: ...
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Scott Hamilton has consulted globally with several hundred manufacturing/distribution companies on SCM and ERP issues. His publications include multiple books about SCM using Dynamics 365FO/AX, two textbooks about SCM/ERP, and 100+ articles in MSDynamicsWorld.com. Scott has been a frequent speaker at Microsoft and user group conferences around the world, and a 10-time winner of the rarely given Microsoft MVP award.
