Order quantity

Finance and Operations/AX User Forum
1

Hi,

In AX 2012, how AX determined the order quantity if the user set up a min/max coverage group?

1st scenario (s, S) inventory policy - if the item on-hand level is below s, then replenished to S

2nd scenario (r, Q) - if the item on-hand level is below r, then replenished with a constant quantity Q

How can I set this up in AX 2012 for these two scenarios?

Thanks,

2

Hi,

I work on AX2009 but I think it should be the same:

  1. Set up min (s) and max (S) stock levels for items. Assign items to Coverage group which ‘Coverage code’ is ‘Min./Max.’

  2. Set up min (r) stock level for items. Set up min and max order quantity for items. If you want on-hand stock to be always replenished with same quantity (Q) I think both min and max order quantities has to equal Q.

Regards,

PG

3

It is the same in AX2012

I would get the customer to justify the “maximum” so your S. it is better, in my opinion, not to do this and to replenish a quantity that is an order modifier and is based upon price breaks and coverage rather than a physical storage restriction - unless one really exists. AX will over order if your Max is 10 and you need 20. You need 20 so it ignores the max!

Item coverage setup from the item is what you are looking for. Set the order multiples up against the item to get Q and use period with a minimum stock to represent r. Base it in usage and lead time, then in the future run the safety stock journal to analyse if you were good (not as useful if you use min/max keys to flex the values for periodic trends).