Model SCM Decision Making for Purchased Material using Microsoft Dynamics 365 for Operations

Planned orders communicate the need to replenish an item's inventory, and are generated by master planning calculations based on an item's planning data and demands stemming from S&OP game plans. They provide a critical tool for effective supply chain management (SCM). The item's planning data represents a model of decision making about coordinating the supply chain. In particular, the planning data for purchased items and the generation of planned purchase orders in Dynamics 365 for Operations or AX 2012 R3 should represent the SCM decision making logic by the responsible buyers.

This article starts with the key planning data for purchased items, and the different ways to maintain the planning data. It identifies several special cases regarding the planning data for purchased items, and reviews the use of planned purchase orders generated by master planning calculations. It also discusses one approach for measuring improvements in the use of planning data to model SCM decision making. These considerations are reflected in the following sections within the article.

1. Key Planning Data for Purchased Items
2. Key Pages for Defining an Item's Planning Data  
3. Maintain Planning Data for Items
4. Special Cases for Purchased Items
5. Planned Purchase Orders and Coordination Tools
6. Measuring Improvements in the Model of SCM Decision Making
7. Case Studies

A critical aspect of modeling SCM decision making involves the coverage group assigned to a purchased item. The first article within this 3-part series covered the significance of coverage groups.

For explanatory purposes, the article assumes a baseline model of operations which represents common use of Dynamics 365 for Operations and dominant business practices within many manufacturing businesses. It provides a foundation ...