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- [Instructor] Dynamics 365 Supply Chain Management.
Feature overview, utilize planning optimization support
for priority-based planning.
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Master planning with planning optimization
for Dynamics 365 Supply Chain Management
can be configured to optimize replenishment
based on priority and not by date.
This enables businesses to increase service levels,
reduce inventory levels and optimize their supply chains
by prioritizing replenishment orders
to ensure that urgent demand is prioritized
over less important demand.
The planning priority is automatically calculated
based on a flexible setup
that considers inventory levels for minimum reorder point
and maximum as well as projected on hand
that include future supply and demand.
This data can be used to compare
the importance of any orders, cross products and locations.
Note that the lowest value of planning priority
is the most important as the value represents
the percent of projected units on hand
compared to the maximum inventory.
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To demonstrate this distribution center
fulfills orders for two warehouses.
Warehouse 12 has a projected on hand of three units
and a requirement of five to reach its maximum of eight.
This priority setup uses percent of maximum
for the calculation.
So the plan to transfer order
of this planning priority is 37.5%.
Warehouse 13 has a projected on hand of one
with the requirement of seven units
to reach the maximum of eight,
making the plan to transfer order
of this planning priority 12.5%.
In this instance,
the supply for warehouse 13 will be prioritized
over the supply for warehouse 12,
since it is at greater risk of the stockout situation.
The purchase order to fulfill the distribution center
also includes planning priority,
ensuring that both external and intercompany vendors
can stay informed about the urgency of supply orders.
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As an alternative to percent of maximum,
priorities can be calculated
by defining several priority ranges.
This setup enables automatic splitting of replenishment
into multiple planned orders.
Each with individual planning priority
based on the defined priority ranges.
This priority model is split into a three zone setup
indicated as red, yellow and green.
Notice the projected on hand is 100 units.
Well below the reorder point and into the red zone.
Therefore the red zone is fulfilled
with a planned order of 150 units and the priority 30.
The yellow zone with a planned order of 250 units
and the priority 50.
Finally, the green zone is fulfilled
with a planned order of 500 units and priority 70,
reaching the maximum of 1000 units in total.
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Because of this,
the planning engine will suggest a series of planned orders
to refill each warehouse to the maximum number of units.
For example, the first supply orders,
those with a priority of 30,
will receive enough units to bring all warehouses
to their minimum inventory levels.
With all warehouses now in the yellow zone,
the following orders with priority 50
will bring all warehouses to their reorder point.
This way, the system ensured that the available supply
was distributed between warehouses
to minimize the risk of stockout.
The remaining orders in the green zone at priority 70
will be fulfilled once supply is available
and the warehouses can be brought to their maximum levels.
Priority based planning can ensure optimal usage
of the distribution centers available supply
by making it easy to prioritize orders
by level of importance.
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We welcome you to learn more
about planning optimization at these links.
And at dynamics.microsoft.com/supply-chain-management.
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Thank you for watching.
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