Solving Common S&OP Scenarios in Dynamics AX 2012: Variations with Linkage to Sales Orders

Editor's Note:  In the second of this four-part article, Dr. Hamilton reviews some common S&OP scenarios requiring linkage between the sales order and the item's supply order. The previous article covered scenarios that do not require linkage. The continuation of the previous article is reflected in numbering of figures and case studies. Dr. Hamilton will also be covering these topics as part of his speech (UBAX007) at the Convergence 2014 conference in Atlanta on Friday, March 7 at 9am.

One of the cornerstones for effective supply chain management in a manufacturing business consists of effective sales and operations planning (S&OP) game plans.  The nature of an S&OP game plan depends on several factors, such as the need to anticipate demand for an item, the item's primary source of supply, 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 plans. 

This article focuses on S&OP scenarios requiring linkage between the sales order and the item's supply order.  These scenarios include make-to-order products as well as buy-to-order products.  Some scenarios also include make-to-order components.  Each scenario involves slight differences in the nature of linkage, and the linkage differs between standard cost and actual cost items.  The linkage can simply provide visibility of the sales order demand for standard cost items, or it can provide visibility and additional functionality for actual cost items.  The linkage builds on the marking ...