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Inventory Planning Replenishment Triggering based on "On Hand" and not "Hard Available"

  • 26 June 2024
  • 9 replies
  • 146 views

I’m in build 2024R1 testing out Manufacturing module and trying to setup work flows for my organization, and I’ve run into what I see as a bug - the replenishment in the Inventory Planning Display seems to be triggering from On Hand and not from Hard Available. This feels like a bug to me - does calculating from on hand and not hard available provide value for anyone? 
Here’s an example of where things can go wrong: 

You have 30 items on hand, but in shipping status, and so 0 hard quantity available. Your safety stock is set to 10, but it won't trigger, because you have 30 units 'on hand' even though they're in shipping status (or they might have already shipped and not yet been invoiced). 

So let’s say I have a process to repull inventory demand part way through the day. If I have 500 orders that are moving through shipping, and those orders have reduced my hard available inventory completely on a number of items, those items won’t show up in my inventory planning display to replenish, so I won’t get those work orders moving until the next day. So if I’m trying to get a head start on all of my orders for tomorrow by making sure to replenish all of my inventory needed for sales orders, I’m not going to be able to do that until all of today’s orders have fully invoiced. 

Or let’s say I have an order that just gets stuck in shipping or invoice state, has some problem with it, that inventory will not clear until the order clears, and therefore, I won’t replen the inventory, and I’ll get more orders down the line stuck because of it. 

 

Is this intentional? What’s the theory behind it? If it’s not, I would really love to see this fixed in an upcoming patch. 

Thanks!

9 replies

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Hi @hazen35 

 

Could you please confirm what screen you are using?

 

Is it AM400000?

https://www.linkedin.com/in/aleks-iwan-mbcs-03705b240/
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@aiwan AM400000, that is correct. Regenerate Inventory Planning, then reviewing recommendations on Inventory Planning Display Inquiry AM400000

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@hazen35  would you mind sharing some screenshots please?

 

One thing I would recommend is setting up an automation schedule for the regenerate MRP to run 3 times a day for you to have as much insight for the next day as you could.

 

https://www.linkedin.com/in/aleks-iwan-mbcs-03705b240/
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@hazen35 - MRP looks at the open demand and open supply and on hand quantity. In your example 

You have 30 items on hand, but in shipping status, and so 0 hard quantity available. Your safety stock is set to 10, but it won't trigger, because you have 30 units 'on hand' even though they're in shipping status (or they might have already shipped and not yet been invoiced). 

MRP will start with 30, subtract the 30 on the shipping demand. 

Here you can see the example of a shipment confirmed but not processed and the system still picks up shipments. If you have this same setup and are getting different results, it could be a setup issue. 
 

See that I have 30 on hand, I have 30 on my shipment, this drops me below the safety stock of 20, so I have a line that recommends I purchase 20 items to get back to safety stock. 

If you haven’t already I would recommend reviewing  the MRP White Paper 

 

If you are still having problems, please post the screen shots of the setups and results. 

 

Hope this helps! 

Andre St. Amour
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Hey @andrestamour43 thanks for the response! 

It’s good to know that is the expected behavior. Here’s what I’m seeing on that screen: 
 


So it’s asking to build 23 in this case, but with the method you discussed above, shouldn’t it be asking to build 50? It seems like it is correctly deducting SO Booked and SO Allocated, but not SO Shipped. Is that expected?
Thank you for sharing that whitepaper as well, that’s hugely helpful. I’m being cheeky and still asking the above question before reading, but I will absolutely read this whitepaper shortly when I can find a moment.

Thanks!

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@hazen35 - your inventory allocation details screen is not filtered down to the warehouse where as Inventory Planning Results by Item is filtered to the warehouse, so you have a comparison that is not equal. 
 

If you want the minimum reorder order quantity to be 50, then you would have to set the minimum order quantity to 50. Safety stock just indicates when the system will trigger an order to get back to at least the safety stock level. 

Andre St. Amour
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Hey @andrestamour43 - Even though the allocation details screen isn’t filtered, the only inventory for that item is still in the same warehouse. If I filtered it to the same warehouse, you would see the same details: 
 


The build quantity should be 50 because safety stock is set to 50.

It seems like the calculation is only subtracting SO Booked and SO Allocated, but not SO Shipped. 

Almost - I checked all of the order numbers listed in the inventory planning results by item screen and it matches all of the SO Allocated, and one of two SO Booked: 
 

So it’s taking all SO Allocated, and 1 of 2 So Booked, but ignoring all of the SO Shipped: 
35 - 6 - 2 = 27 units it thinks is available. Since Safety is set to 50, it’s asking to rebuild 23 units

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@hazen35 - if your warehouse settings are all selected for inventory planning, and location Z-13 is marked to be planned by inventory planning, and all inventory planning preferences are set correctly then I would suggest reaching out to support for further assistance. 

MRP should be seeing the shipments as demand if all settings are correct. 

Andre St. Amour
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Ahhh, wow. @andrestamour43 after all that, I found a checkbox in the inventory settings in the warehouse setup for ‘shipments’ - I checked that, and the data looks good now. 

I looked for this in the whitepaper, but not seeing it. When the shipments box is checked, does that just means that demand from SO Shipped will be calculated as part of inventory planning process? 

 

Thank you!

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