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Forecasting Stocked Components for S&OP in Microsoft Dynamics AX 2012

by Scott Hamilton
Consultant and Author, The Manufacturing Guild
January 15 2013

Editor's note: During January, Dr. Hamilton will be publishing a series of deep-dive articles about different aspects of S&OP in his column The AX Solution Architect. The first of these articles was published last week. These articles reflect new insights gained from multiple sources, including discussions with S&OP experts in the global AX community, sessions at the recent AXUG Summit and R2 Technical Conference, and hands-on testing of AX 2012 capabilities.

Stocked components can support shorter delivery lead times with make-to-order production strategies, whether the end-item reflects a standard product or a configurable item.  Demand forecasts for these stocked components provide one approach to drive replenishment, but the approach requires the correct forecast consumption logic to avoid doubled-up requirements.  New capabilities within Microsoft Dynamics AX 2012 support the correct forecast consumption logic.

This article focuses on using demand forecasts within AX 2012 as a key element of the S&OP game plans for make-to-order products with stocked components.  It provides several case studies and suggestions, and highlights several differences between AX 2012 and AX 2009.  These topics are reflected in the following sections within the article.

  1. Demand Forecasts for a Stocked Component
  2. S&OP Game Plans with Stocked Components
  3. Suggestions and Case Studies
  4. Key Differences between AX 2012 and AX 2009
  5. Summary

It is assumed the reader has familiarity with the basics of demand forecasts and forecast consumption logic within AX 2012, as described in a previous article about demand forecasts for stocked products

1. Demand Forecasts for a Stocked Component


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About Scott Hamilton

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 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.

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