Supply Chain Management in Dynamics AX

This blog contains information and feedback on the Supply Chain Management area in Microsoft Dynamics AX

Improved integration to warehouse management in process manufacturing AX2012

Improved integration to warehouse management in process manufacturing AX2012

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Process manufacturing adds multiple capabilities to ensure that the inventory that is reserved is the inventory that meets the customer criteria. This capability is useful for any enterprise irrespective of nature of manufacturing environment.

For instance customer could ask for an inventory batch of chocolate bars with cocoa content between 80 and 100. In addition of course, AX should not ship expired batches or batches that are currently unavailable for picking, shipping etc. In previous versions it was possible to apply these criteria of inventory reservation on sales orders and transfer orders but was not possible to apply these criteria if warehouse management was used to pick, ship, stage & load goods. However AX2012 will take all these requirements into consideration when doing warehouse reservations.

In this post, a brief scenario is used to show how warehouse management reservation now works to ensure that customer criteria are met just like as in case of inventory reservation system.

Consider this on-hand information for different batches of chocolate bars

On-hand info for item WMS:

WMS scenario

Create a sales order. Add a line for chocolate bars to the sales order with quantity of 1700. On-hand inventory is automatically reserved. You can see here that reservation is only done on batches that are available, is done in FEFO order and the batch outside attribute range (batch B2, requirement: cocoa content must be between 80 and 100) is not reserved.

Batch reservation on sales order

Release the sales order line and create an inventory order (output order) which is the basis for shipment.

Create a shipment, inventory order created above will automatically be added to the shipment.

Inventory order

Shipment status is registered at this point. If you look at the shipment lines, you will see 1500 reserved on B1 and 200 on B3. As you can see this is not correct according to the WMS reservation policy because we should first create output transports from bulk locations (location 001-01-3) and then pick the rest from the picking location (002-02-1)

Shipment

Click Functions-> reserve now, shipment will have reserved status now. If you look at the shipment lines now, you will notice that the shipment is reserving according to the WMS reservation principles (First output transport from bulk locations and the pick the rest on picking locations). So 1500 reserved on B3 and then 200 on B1.

Shipment lines

Activate the shipment, complete the pallet transport and picking route.
Key thing to note here is that just like inventory reservation, WMS reservation also picks batch B3 and not batch B2 as it did in previous versions.

Contributors: Johan Hoffman, Akshey Gupta

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