Models of SCM decision making using Microsoft Dynamics 365 for Operations

Editor's Note: This article is drawn from the recently published book by Dr. Hamilton about master planning in different types of manufacturing. The book contents (and the article) apply to those firms using Microsoft Dynamics 365 for Operations or Dynamics AX 2012 R3. It represents the first of a 3-part series about key planning data to model SCM decision making.

Master planning calculations can provide significant benefits for a manufacturing company by coordinating supply chain activities driven by S&OP game plans. To be effective, they require a reasonably accurate model of the supply chain and the decision-making logic of key personnel responsible for supply chain management (SCM). The key planning data for each item represents a model of this decision-making logic. The planning data differs for purchased items, manufactured items, and transfers. A critical aspect of this planning data involves the coverage group assigned to each item. Each user-defined coverage group consists of multiple policies such as the applicable coverage code and the use of action messages. These messages work in conjunction with planned orders and actual orders to coordinate supply chain activities to meet the S&OP game plans.

This 3-part series focuses on the use of key planning data to model SCM decision making in a manufacturing business. This first article reviews the significance of coverage groups and the options for a coverage code, and explains the coverage group policies related to action messages and calculated delay messages. The next two articles build on this ...