Net Change Plan or Regenerative Plan

Dear Navision Experts and Users , We are a equipment Manufacturing company and 75 percent of our products are custom built and rest 25 percent are our standard products. We are using Navision Financial Version W1 2.60.B. Right now we have successfully implemented and using following modules in our Phase I. 1. General Ledger. 2. Sales & Receivables. 3. Purchase & Payables. 4. Inventory. We are now implementing Manufacturing and Capacity Requirement Planning and trying to integrate these 2 modules with Phase I modules as mentioned above. We are facing one major problem and we need your kind suggestion and comments with regard to the same. The problem is detailed below. The Problem : In Manufacturing - Planning Worksheet – when we update the planning line with the Item to be manufactured giving Due date and other information’s. We run Function - Refresh Planning line after calculating Net Change Plan or Regenerative Plan, Planning Worksheet refreshes with the Items mentioned in Prod. BOM for total quantity required for manufacturing without considering Quantity on inventory & purchase order. Requisition Method code used in all our item master is the code having the combination of the following options. a. Manufacturing Policy - Make to Order b. Calculate below reorder point - Yes c. Reordering Policy - Blank d. Calculate with Inventory - Yes Requirement : Our requirement is, When we refresh planning worksheet, Quantity field should show only the net required quantity after considering inventory on hand and on purchase order. Qty. In Planning Worksheet = (Qty to be Manufactured X Prod. BOM Qty.) - QTY ON HAND-Qty on P.O. Our Query is a. Why the system is not considering Quantity on hand and Purchase Order even after running Calculate Net Change Plan or Regenerative Plan function. b. Which is the Manufacturing Setup field, which initiates this function? c. What is the role of Requisition Method code in MRP running which will trigger the required option. d. Is there any program bug in Navision Version that we are using ? We will be thank full to you, if you reply in detail, point wise. Regards, Navision Administrator. DISA INDIA LIMITED - India Date : 03.09.02

Hi dgravi I suggest you alter two settings and see how this alters the suggested requisitions. Change the manufacturing policy to Make to Stock (cannot remember off the top of my head if MTO clearly does that and ignores inventory). Secondly actually select a reordering policy, this will depend upon your individual requirements, but for arguments sake try lot-for-lot. To answer your individual queries: a. Why the system is not considering Quantity on hand and Purchase Order even after running Calculate Net Change Plan or Regenerative Plan function. This is due to a combination of the two fields mentioned above, as well as others, so see the reults from teh above and let me know teh results. b. Which is the Manufacturing Setup field, which initiates this function? A combination of the two above fields and several others depending upon the flagging of these fields, i.e. when the replenishment order is generated it can take into consideration minimum, maximum, lead time, reorder cycle, reorder point, reorder quanity, etc., depending upon your settings c. What is the role of Requisition Method code in MRP running which will trigger the required option. The requisition code determines the methodology of your replenishment and the fields considered. d. Is there any program bug in Navision Version that we are using ? Without a shadow of a doubt, but I do not believe this is the issue here! Let me know how you get on Kind regards Steve[:D]

The reorder policy is telling Nav how many (related to fields on SKU or Item card) and when items should be ordered or produced. From the course we learned : don’t use blank as option. fixed reorder qty : if demand is larger than reorder qty : demand rules. max qty : max reorder qty is limit per order. If max reorder qty = 100 and demand = 100, than you get 2 orders : 1 for 100 and 1 for 5. order : follwos the net demands in terms of qty and time lot for lot : groups net demands over the reorder cycle. On the SKU or Item card, following paramteres also have impact on qty --------------------------------------------------------------------- safety stock reorder point : safety (eg 100). If you drop to al level of eg 80 and during the lead time you still need to make 85 => order. the modifiers ------------- min. order qty max. order qty : splits orders order multiple : eg order in multiples of 12 lot size : not for planning, but for dampening and costing

Most important probably is (see Mnf manual) : If the Mnf. policy is MTO, then the Calc. with Inventory flag is not taken into account.