A quick tip on the use of order multiples by Master Planning when using formulas, as opposed to Bills of Materials:
- When Master Scheduling determines that an item has a net requirement, it will generate a planned replenishment (planned purchase orders, transfers, or production orders)
- In order to generate meaningful planned orders, Master Scheduling must respect an item’s “order multiple” (i.e. the item is always procured / produced in multiples of X)
- Typically, the “order multiple” is defined by navigating to Product Information Management -> Common -> Released Products, and then selecting “Default Order Settings” or “Site Specific Order Settings” on the “Plan” action pane. Define the Order Multiple on the Purchase Order tab if the item is replenished via PO. If replenished via Transfer or Production, define the Order Multiple on the Inventory tab. See screenshot below.
- However, those settings only work when the item is replenished via a Purchase Order, a Production Order with a Bill of Material, or a Transfer Order.
- When the item is replenished via a Batch Production Order with a Formula, the order multiple must be defined on the Formula, as opposed to “Default Order Settings” or “Site Specific Order Settings” (see screenshot below)
This article was written by Matthew Boese, Partner at Tridea Partners. Tridea is a leading Microsoft Dynamics provider serving CA, AZ, UT, CO and surrounding regions.