Adding here since I got a couple messages on social about the Lead times. If the item you are calculating safety stock/minimum inventory levels for is a Purchased item, you need your Default order type in the Default order settings to be "Purchase order" and have a Purchase lead time. The Inventory lead time works for items that are Produced/transferred and have a Default order type of "Production"
I remember the days in AX3.0. It’s amazing that this concept hasn’t changed. Yet I have extended this a few times to use a forward calculation. Wonder why MSFT never picked that up
Thank you vert much! Great explanation and it helps me a lot! I still have a question though. So during the minimum stock calculation, if I choose "Use average issue during lead time", it will calculate the min stock I need to cover my lead time. But I am still confused about the "service level " option, if I choose 80%, will it calculate the min stock I need to cover 80% of my whole planning period? Is there a formula for that? I really appreciate your videos anyway!
Assuming the Multiplication factor is set to "1" then yes the Average issue during lead time option will calculate the min stock to cover demand over the item's lead time. Service level is slightly different. You must make sure to select the "Calculate standard deviation" checkbox when you first createe the lines to use the service level in the proposal. A low standard deviation means that most of the numbers are very close to the average. A high standard deviation means that the numbers are spread out around the average. I don't have the exact formula handy but the svc levels are associated with a svc factor like the below that is used in the calculation for SS: Svc Level Svc Factor 50 0 80 0.84 90 1.28 95 1.64 98 2.05 99.86 2.99 99.99 3.72
@@DynamicsUnplugged wow, it seems that it involves some complicated calculation when it comes to service level. I guess I will need to do more research to understand this. Thank you very much again for the detailed explanation!
How can we dynamically calculate the Maximum when using min/max & safety stock? I would ideally want to be able to say I have calculated min,,, Max = 3 x min for instance
This has long been in a gap in the standard system and often requested. I have used Excel before to use that calculation then just imported the Item coverage records to update those values. There are newer functions with the DDMRP functionality, Decoupling points, and Buffer values to calculate a min/max dynamically using transactional history but there is not a direct function for what you are asking.
Adding here since I got a couple messages on social about the Lead times. If the item you are calculating safety stock/minimum inventory levels for is a Purchased item, you need your Default order type in the Default order settings to be "Purchase order" and have a Purchase lead time. The Inventory lead time works for items that are Produced/transferred and have a Default order type of "Production"
great video, love the enthusiasm in your videos! Subscribed!
It was very well explained. I learned a lot. Thank you!
It’s a pity the safety stock cannot be automatically calculated based on demand forecast.
I remember the days in AX3.0. It’s amazing that this concept hasn’t changed. Yet I have extended this a few times to use a forward calculation. Wonder why MSFT never picked that up
Idea created, vote it up!!! experience.dynamics.com/ideas/idea/?ideaid=91c60e3a-f989-ec11-b820-0003ff45e037
Great Video, Very well explained . Well Done
Great video, very nicely explained. Thanks!
Very well explained, you rock
Fantastic! Thank you :)
great video, make big senses
thanks
Thank you vert much! Great explanation and it helps me a lot! I still have a question though. So during the minimum stock calculation, if I choose "Use average issue during lead time", it will calculate the min stock I need to cover my lead time. But I am still confused about the "service level " option, if I choose 80%, will it calculate the min stock I need to cover 80% of my whole planning period? Is there a formula for that?
I really appreciate your videos anyway!
Assuming the Multiplication factor is set to "1" then yes the Average issue during lead time option will calculate the min stock to cover demand over the item's lead time. Service level is slightly different. You must make sure to select the "Calculate standard deviation" checkbox when you first createe the lines to use the service level in the proposal. A low standard deviation means that most of the numbers are very close to the average. A high standard deviation means that the numbers are spread out around the average. I don't have the exact formula handy but the svc levels are associated with a svc factor like the below that is used in the calculation for SS: Svc Level Svc Factor
50 0
80 0.84
90 1.28
95 1.64
98 2.05
99.86 2.99
99.99 3.72
@@DynamicsUnplugged wow, it seems that it involves some complicated calculation when it comes to service level. I guess I will need to do more research to understand this. Thank you very much again for the detailed explanation!
How can we dynamically calculate the Maximum when using min/max & safety stock?
I would ideally want to be able to say I have calculated min,,, Max = 3 x min for instance
This has long been in a gap in the standard system and often requested. I have used Excel before to use that calculation then just imported the Item coverage records to update those values. There are newer functions with the DDMRP functionality, Decoupling points, and Buffer values to calculate a min/max dynamically using transactional history but there is not a direct function for what you are asking.
is safety stock not calculated new maximum?
No unfortunately not, SS journals do not calculate new maximums