Manage S&OP Variations with Formula Items using Microsoft Dynamics AX 2012
Editor's Note: As the third of a three-part article, Dr. Hamilton reviews S&OP variations involving formula items and their unique AX functionality, and also summarizes the series of articles. These variations represent slight differences in the baseline model for solving common S&OP scenarios. The continuation of the first two articles is reflected in numbering of sections and case studies.
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 unique factors that must be considered for those products with process manufacturing characteristics. These unique factors, which can be managed in Microsoft Dynamics AX 2012, include items with shelf life items or critical lot attributes, as described in the first two articles within this series. These unique factors impact several elements of S&OP game plans, such as sales order processing and master scheduling logic. For the most part, these variations in S&OP game plans apply to both approaches for modeling product structure within AX 2012 -- via formulas or bills of material and their associated batch orders and production orders.
This article examines several additional factors about production characteristics - such as co-products, substitute ingredients, production sequencing, and bulk/pack scenarios - which involve AX 2012 functionality for formula items and their related batch orders. These additional factors primarily impact master scheduling logic and planned batch orders, which represent key elements in the S&OP game plans. The article consists of four sections about S&OP variations for different production characteristics.
3. Batch Orders resulting in ...
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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.
