Tuesday, November 4, 2008

Reorder point and EOQ in standard functionality of AX 2009: using Master Planning for automatic replenishment

In standard AX automatic replenishment is realized by Master Planning functionality that can suggest you to buy, produce, or move certain quantity of your inventory:

Those suggestions (Planned orders) are based essentially on the current inventory (including e.g. purchase orders in process), forecast data (demand we expect) and item parameters.

The reorder point and order quantity (EOQ) can be set up in the coverage paramenters of the item. They need to be calculated manually and set up as Minimum (reorder point) and Maximum (order quantity) stock for specific location (site and warehouse). The Minimum and Maximum parameters can take different values in different periods for the same item - to adapt reorder point and economic order quantity for uneven forecasted demand.

© Andrey Maslov

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