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Kanban quantity calculation policies (form) [AX 2012]

Updated: February 8, 2012

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Click Production control > Setup > Lean manufacturing > Kanban quantity calculation policies.

Use this form to create policies that define how to calculate the kanban quantities that you want to have in circulation for specific products. You can use these policies to manage the supply of material to work cells, and to control the inventory levels that are maintained in supermarkets. You can create policies that are applicable to multiple kanban rules. For example, policies can be used for rules that share similar demand patterns or logistics. You can create multiple policies to address different scenarios.

After you create policies, you can perform the following tasks:

  1. Assign a policy to a kanban rule that has the Fixed replenishment strategy. You can do this on the Kanban quantity calculation policies FastTab in the Kanban rules form.

    You can also remove a policy from a kanban rule or delete a policy.

  2. Perform the kanban quantity calculation. For more information, see Kanban quantity calculation (form).

The following tables provide descriptions for the controls in this form.

Tab

Description

General

Enter the main parameters that define the policy.

Button

Description

New

Create a policy.

Delete

Delete the policy.

Field

Description

Name

Enter a unique identifying name for the policy.

Master plan

Select the master plan that you want to use to calculate requirements.

Minimum kanban quantity

Enter a value of 1 to add one additional kanban to the formula for the kanban quantity calculation. If you do not want to calculate a minimum kanban quantity, enter 0 (zero).

Safety factor

Enter a value to include a safety factor in the kanban quantity calculation. You can enter a value that is greater than or equal to 0 (zero).

Example

  • If you enter 0, the formula does not include a safety factor.

  • If you enter 0.1, 10 percent is added to the calculated demand. The formula displays 1.10.

Include safety stock

Select this check box to include a level of safety stock in the calculation. You may want to use safety stock if the demand during the lead time is not stable. The safety stock is calculated based on demand and the service level that is defined in the Service level field. The formula is as follows:

kanban quantity = ((average daily demand x lead time x (safety factor + 1)) + safety stock / product quantity per handling unit) + minimum kanban quantity

NoteNote

When you include safety stock, there is an impact on the performance of the calculation.

Service level

When the Include safety stock check box is selected, you must select a service level. The options are 50%, 80%, 90%, 95%, 98%, 99.86%, and 99.99%. For example, if you select 90%, it is assumed that the probability of a stockout not occurring is 90 percent.

Each service level is associated with a precalculated service factor, which is used to calculate safety stock. Examples of service levels and their corresponding service factors are as follows.

Service level

Service factor

90%

1.29

95%

1.65

99%

2.33

Period

Select this field to define a policy that calculates kanban quantities based on demand during a period that is relative to the calculation date. When you select this field, the Days behind and Days ahead fields become available.

When you select this field, the Season field group is unavailable.

Days behind

Enter the number of days before the calculation date that demand is included in the calculation. Usually, this includes fulfilled demand, actual demand, and forecasted demand.

Example

If you enter 25 days in this field, and a sales order was shipped 20 days before the calculation date, the demand from the sales order is included.

Days ahead

Enter the number of days after the calculation date that demand is included in the calculation. Usually, this includes actual demand and forecasted demand.

Example

If you enter 25 days in this field, and a sales order has a requested ship date 20 days from the calculation date, the demand and the derived demand from the sales order are included.

Season

Select this field to define a period, based on a starting date and an ending date in a calendar year, during which demand is calculated. You can use this setting to address seasonal demand. When you select this field, you must enter values in the Start day and month and End day and month fields.

When you select this field, the Period field group is unavailable.

A quantity calculation that uses a seasonal period creates two periods of demand:

  • A period for actual demand and forecasted demand in the current year, according to the calculation date.

  • A period for fulfilled demand in the previous year.

Both periods start and end on the same month and day, but in subsequent years.

Start day and month

Select the day and the month to define when the period for calculating demand starts. Both fulfilled demand and unfulfilled demand are included in the calculation.

End day and month

Select the day and the month to define when the period for calculating demand ends. Both fulfilled demand and unfulfilled demand are included in the calculation.

Formula

The mathematical formula that is used to calculate the kanban quantity. The formula is based on the settings that you define for the calculation policy.


Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).
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