Calculate proposal for minimum inventory level (class form)

  • Article

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

Click Master planning > Journals > Safety stock. Click Create new. Select an item, and then click Journal lines. Select Calculate proposal to open the form.

Use this form to calculate a minimum inventory level for the selected item in the journal.

You can make the calculation in two ways:

  • Use avg. issue during lead time

  • Use service level

Both methods have the following prerequisites:

  • The issue quantity must correspond to the demand quantity.

  • The monthly demand can be described by a typical distribution.

Task that uses this form

Create a minimum inventory quantity proposal

The following table provides descriptions for the controls in this form.

Enter criteria on the General tab

Submit a batch processing job from a form

Fields

Field

Description

Use avg. issue during lead time

Select to calculate the minimum inventory level to cover the average number of issues that can occur during the total lead time. The total lead time is the lead time on the item plus the Lead time margin that you specify.

Factor used for multiplying

Manage fluctuations in the number of issues. These might occur because of changing seasonal demand, for example. Enter a factor by which to multiply the average number of issues during total lead time.

Use service level

Select to calculate the minimum inventory level required to cover the standard variation of issues during the total lead time plus the service level percentage that you want to maintain.

Details of the calculation are as follows:

Minimum inventory level = safety factor * standard deviation per month * square root (total lead time / 30 days)

The following table shows the relationship between the service level and the safety factor.

Service level [%]

Safety factor

50

0

80

0.84

90

1.28

95

1.65

98

2.05

99.86

3.00

99.99

4.00

Note

A service level of 50 percent will create a minimum inventory quantity of 0.

Service level

Select the service level that you want. This is defined as the percentage of time during which there is no stock out.

Lead time margin

Enter the number of days for the lead time margin. These could be days used for internal administration of the order process, for example. This number of days is added to the lead time, and average issues are calculated for the period.

Proposal = new minimum

Select the check box to transfer the calculated minimum quantity to the New minimum field.

See also

Create minimum inventory journal lines (class form)

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