Committing/reserving stock

  • Committing/reserving stock

    Posted by DSC Communities on December 15, 2016 at 12:29 pm
    • Barb Carlson

      Member

      December 15, 2016 at 12:29 PM

      I am looking to see how others handle an ongoing problem we have been having.

      We are working on NAV 2009 service pack 1. We have our order allocation set up so that the system runs a batch report nightly, looks for orders due to ship within 30 days and will reserve stock to the orders – first in first out.

      The problem we have is when we do not have replenishment stock on order, or expected in time for future shipments and secondary at once orders “stealing” the stock.

      Example: An order is placed for shipment 60 days out that takes most, or all, the available stock at the time of order.  Later, someone will place an order for immediate ship, or ship within 30 days, for some or all of the same stock; essentially stealing the stock the first order was expecting. 

      We have looked at a larger allocation window, but by doing that it prevents sales when there is replenishment stock on order to cover later shipments.  

      ——————————
      Barb Carlson
      American Needle
      Buffalo Grove IL
      ——————————

    • Saurabh Shah

      Member

      December 15, 2016 at 2:44 PM

      Hello , 

      This looks like a customized function to allocate the material automatically at every night. It seems that this function is written only for allocating the material available but it is not functioning for reallocation. 

      I mean, You can ask your development partner to make a logic that system should do re-look at the demand and supply and and if any change happened in demand (due date) then do cancel reservation and do the fresh reservation for the item. 

      Yes, this will take some more time to complete the batch but I think it will serve your requirement. 

      Regards,

      ——————————
      Saurabh Shah
      Amerdian LLC
      Midlothian VA
      ————————————————————————-

    • Matt Traxinger

      Member

      December 15, 2016 at 3:11 PM

      I think you need to define what you want it to do. You’ve told us what it is doing, but not what you are expecting.

      Some would say that it is “stealing” the stock and it shouldn’t use promised inventory. Others would say it makes sense to ship the inventory you have and buy more for the next customer. It just depends on what your business requirements are.

      ——————————
      Matt Traxinger
      NAV Developer
      ArcherPoint Inc.
      San Antonio TX
      ————————————————————————-

    • Barb Carlson

      Member

      December 15, 2016 at 4:47 PM

      Thank you everyone for your input.

      I have talked to the developers about this and they feel it would be too much to have the system reserve/un-reserve because of many variables, including picks being outstanding.

      Ultimately, I’m trying to figure out how have customers receive the product they want in 60 days without worrying about someone putting an order that ships in 30 and taking the stock. I thought there may be other companies out there facing the same problem and was wondering what their solution was. 

      We don’t reserve more than 30 days out because of potential “lost” sales. Also, our replenishment stock can take 90- 120 days to arrive. 

      Here is another example…

      100 pieces on hand of product x

      200 pieces due in 50 days

      Order placed yesterday for 80 pieces with delivery 60 days

      Order placed today for 80 pieces delivery 30 days

      This scenario works with the 30-day allocation/reservations because replenishment will be here in 50 days and will cover the shipment in 60 days. But, if replenishment was not coming until 75 days it would not work, someone would not get full allocation. Realistically it should be the order shipping in 30 days, as it was the second order received, but the 60 day out order always suffers.  We don’t reserve 60-120 days out because no new orders would be able to ship until the 60 day order shipped, or stock arrived, whichever comes first.

      I hope this makes sense?

      ——————————
      Barb Carlson
      American Needle
      Buffalo Grove IL
      ————————————————————————-

    • Matt Traxinger

      Member

      December 16, 2016 at 8:30 AM

      Wondering if this might work for you.

      Are you using the Order Promising functionality? https://msdn.microsoft.com/en-us/library/hh178586(v=nav.90).aspx

      Maybe that in combination with changing the automatic processing to only unreserve the items if there is a corresponding PO already entered that a new reservation could be created against.

      ——————————
      Matt Traxinger
      NAV Developer
      ArcherPoint Inc.
      San Antonio TX
      ————————————————————————-

    • Barb Carlson

      Member

      December 16, 2016 at 9:48 AM

      I like this concept, but we are only on 2009.

      ——————————
      Barb Carlson
      MIS Director
      American Needle
      Buffalo Grove IL
      ————————————————————————-

    • Matt Traxinger

      Member

      December 16, 2016 at 9:52 AM

      Order Promising has been there forever. Microsoft just doesn’t keep the documentation online for unsupported versions. I don’t think much has changed with it from what I remember.

      ——————————
      Matt Traxinger
      NAV Developer
      ArcherPoint Inc.
      San Antonio TX
      ————————————————————————-

    • Peter Koch

      Member

      December 19, 2016 at 10:38 AM

      Order Promising is available in Nav 2009 (https://www.cbsi-corp.com/wp-content/uploads/2012/02/NA2009_07_Order_Promising.pdf)

      Peter

      ——————————
      Peter Koch
      CGW Camel Grinding Wheels
      Niles IL
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    • Jonathan Harter

      Member

      December 16, 2016 at 9:30 AM

      Good morning,

      We are faced with this allocation dilemma at times.  To keep things simple and hold the necessary stock for a particular customer, we just re-recreated the base part number, but added an abbreviated customer name to the end of it.  i.e. 184370 SIGNODE  

      Jonathon

       

      ——————————
      Jonathan Harter
      Purchasing & Inventory Control Manager
      Marshall Wolf Automation
      Algonquin IL
      ————————————————————————-

    • Rick Dill

      Member

      December 16, 2016 at 11:48 AM

      I have worked with one client that did something similar to what you want to do, but they didn’t want to commit current inventory to orders that would ship in the future, if there were Purchase Orders that would arrive in time for the order to ship. 

      We had our development staff make sure that reservations reserved first against inbound Purchase orders (if they would arrive before the ship date), leaving the current on hand inventory available for current ship date orders.

      ——————————
      Rick Dill
      Consultant
      ArcherPoint Inc.
      Waupaca WI
      ————————————————————————-

    • Barb Carlson

      Member

      December 19, 2016 at 11:54 AM

      How did they handle the future orders that didn’t have purchase orders coming in against them?  Can you possibly provide more information on this?

      Thanks.

      ——————————
      Barb Carlson
      MIS Director
      American Needle
      Buffalo Grove IL
      ————————————————————————-

    DSC Communities replied 7 years, 4 months ago 1 Member · 0 Replies
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