Lead Time

Multi-Location Inventory: A Day in the Life of the Business Central Replenishment Engine

Multi-Location Inventory: A Day in the Life of the Business Central Replenishment Engine

Managing inventory across several warehouses, stores, and distribution centres is one of the most difficult tasks in today’s business. Inventory misalignment, transfer delays, unnecessary purchases, and lost sales can quickly damage the bottom line and customer satisfaction. Microsoft Dynamics 365 Business Central solves this problem by using its own replenishment and planning engine, which continually assesses demand, availability, and geographical-based inventory to maintain your network in a balanced state. In this article, we will walk through how Business Central accomplishes multiple locations when it comes to inventory on a day-to-day basis. Demand and Inventory are Re-Evaluated As the orders begin to flow in, whether through e-commerce, POS terminals, or B2B sales, Business Central can record this demand and update the inventory automatically by location because of every sale, every shipment, and every return. The replenishment engine evaluates: Rather than being responsive in times of shortage, Business Central is proactive in determining possible risks of stock. Location-Level Planning Begins Business Central looks at inventory planning by location, not only on a global basis. This is very important in a multi-site environment. The system assesses: On this basis, Business Central establishes whether to meet the demand by: This is to ensure that there is no unnecessary buying considering that products already exist in other parts of the network. Planning Parameters Shape Intelligent Decisions Each replenishment proposal is based on the planning configuration of each item, which consists of the following: These enable Business Central to calculate the following: This makes the replenishment process predictable rather than a result of guesses. Actionable Recommendations are Generated When planners open the Planning Worksheet, they will see the following ‘Action’ suggestions: These recommendations already take into consideration what supply already exists, as well as transit inventory. In planning, requirements are reviewed and approved instead of calculated. Execution After approval, the following are created automatically by Business Central: For transferring, the system: For the purchases, it records: Each step is monitored, and it is quantified through inventory availability. Continuous Re-Planning As the shipment is sent, the following is calculated in Business Central: The planning engine is never static. It keeps changing based on what happened during the day. Why This Matters Without a Replenishment Engine, multi-location businesses typically face the following issues: Business Central eliminates these issues by keeping every location aligned to actual demand and available supply. The result is: Conclusion The Business Central replenishment and planning engine is a background process, but it certainly plays a central role in the flow of multi-location operations. Continuous assessment of demand and supply, along with location-level inventory, makes sure the right products are in the right place at the right time without the help of any person. For any organization managing inventory across several sites, this intelligent capability of planning is sure not to be helpful but indispensable.
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How Business Central Predicts the Future: Planning Parameters Explained Creatively

How Business Central Predicts the Future: Planning Parameters Explained Creatively 

Imagine if your ERP system could predict the future.   This would be a helper who will always know exactly when you are running low on your stock, exactly when it’s time for replenishment, exactly what you will need next month, and at exactly what times your perfectly formulated plan will be destroyed because of an unexpected spike. Microsoft Dynamics 365 Business Central already does this, thanks to the capabilities offered by Planning Parameters. The small fields within an Item Card have more might and prowess than most people appreciate. These fields can best be described as tools for fortune telling and influencing your procurement and replenishment strategy.  So today, we’re going to explain these concepts in a creative manner, as there’s a fun tale lurking beneath all that technical talk.  Meet the Fortune Tellers: Your Planning Parameters  A planning field within Microsoft Business Central works like a character with personality, role, and forecasting method.  1. Reorders Point  Reorder Point: Reorder Point wakes up at exactly the moment you are running out of stock and says:  “Hey! The inventory numbers are falling below the threshold–ORDER NOW!”  As a result, in practice, it will mean that as soon as your inventory goes below a certain level, BC will propose a new Purchase/Production Order.  Great for:  Not great for:  2. Safety Stock   The Safety Stock sits at the entrance of your inventory and guards it against chaos.  whispers: “I know demand can be unpredictable… so here’s a cushion.”  It will help you with:  3. Lead Time  Lead Time understands how long it will take for the inventory to arrive and predicts: “Order now, because your supplier takes 20 days. I’ve already looked into the future – trust me.”  Lead Time allows BC to make decisions regarding when it should offer suggestions for purchases or production requirements.  Without correct Lead Time:  4. Lot Accumulation Period  Lot Accumulation Period, your scheduling coach, it says  “Let’s not make an order every time you sell an article, merge demands.”  This parameter is suited for:  5. Reordering Policy Reordering Policy determines strategy. It acts differently based on your choice:  Fixed Reorder Quantity  “Always order exactly this amount.”  Maximum Quantity  “Keep inventory topped up to a target level.”  Lot-for-Lot  “Order exactly what is required. No more, no less.”  Order  “Only order when needed, no extra planning logic.”  This is MRP’s master decision-maker.  6. Min/Max Order Quantity   Both these parameters control ordering.  Minimum Order Quantity:  “No order below this size.”  Maximum Order Quantity:  “Do not buy more than this limit.”  Ideal for instances where vendors have rules on ordering or if you need regular ordering pattern behaviour.  7. Order Multiple   Multiple Order ensures that all buying recommendations comply with rules imposed by vendors or packaging.  “’Your supplier ships in packs of 24. So, 24, 48, 72… not 37.””  BC adjusts for orders based on multiples.  8. Dampener Period and Dampener Quantity   These are soothing for your planning engine.  “Stop overreacting to tiny changes. Let’s avoid creating pointless new orders.”  Used especially for:  9. Time Bucket   Time Bucket determines planning and timeline:  To define planning and timeline, Day. Week. Month.  It influences BC’s concept of demand for every planning window. It is the pulse of the planning engine. Together, they form the business central crystal ball.  Conclusion:  When you put all these parameters together, it becomes an actual predictive engine termed as Business Central. It can:  You’re more than just reacting; you’re seeing it before it occurs.  Planning Parameters Give BC Its Superpower, It should be noted that it doesn’t have magic powers that allow it to know what needs to be ordered and exactly when. You teach it how to think. Planning parameters refer to rules, logic, and intelligence within it that governs predictions. When set up properly, these components make Business Central a ‘future Seeing’, ‘demand Forecasting’, and ‘Inventory Optimizing’ When set up incorrectly … Well, that’s when chaos breaks out. 
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