Planning With or Without Locations

Concerning planning with or without location codes on demand lines, the planning system operates in a straight forward way when:

demand lines always carry location codes and the system fully uses stockkeeping units, including the relevant location setup.
demand lines never carry location codes and the system does not use SKUs or any location setup (see last scenario below).

However, if demand lines sometimes have location codes and other times do not, the planning system will follow certain rules depending on setup.

[!TIP] If you often plan for demand at different locations, then we recommend that you use the Stockkeeping Units capability.

Demand at Location

When the planning system detects demand at a location (a line with a location code), it will behave in different ways depending on 3 critical setup values.

During a planning run, the system checks for the 3 setup values in sequence and plans accordingly:

Is there a check mark in the Location Mandatory field in the Inventory Setup page?

If yes, then:
Does SKU exist for the item?

If yes, then:

The item is planned according to planning parameters on the SKU card.

If no, then:
Does the Components at Location field in the Manufacturing Setup page contain the demanded location code?

If yes, then:

The item is planned according to planning parameters on the item card.

If no, then:

The item is planned according to: Reordering Policy = Lot-for-Lot, Include Inventory = Yes, all other planning parameters = Empty. (Items using reordering policy Order remain using Order as well as the other settings.)

[!NOTE]
This minimal alternative only covers the exact demand. Any planning parameters defined are ignored.

See variations in the scenarios below.

[!TIP] The Locations Mandatory field in the Inventory Setup page and the Components at Location field in the Manufacturing Setup page are very important in governing how the planning system handles demand lines with/without location codes.

For production demand that is purchased (when the planning engine is used solely for purchase planning and not for production planning), Business Central will use the same location for components as the one stated on the production order. However, by filling in this field, you can redirect the components to another location.

You can also define this for a specific SKU by selecting a different location code in the Components at Location field on the SKU card. Note, however, that this rarely makes sense as the planning logic may be distorted when planning for the SKU component.

Another important field is the Maximum Order Quantity field on the Item card. It specifies a maximum allowable quantity for an item order proposal and is used if the item is delivered in a fixed transportation unit, such as a container, which you want to be fully utilized, for example. Once the need for replenishment has been detected and the lot size has been adjusted to meet the specified reordering policy, the quantity is decreased if it is required to meet the maximum order quantity that you define for the item. If additional requirements remain, then new orders are calculated to meet them. You generally use this field with a make-to-stock manufacturing policy.

Demand at "Blank Location"

Even if the Location Mandatory check box is selected, the system will allow demand lines to be created without a location code – also referred to as BLANK location. This is a deviation for the system because it has various setup values tuned to dealing with locations (see above) and as a result, the planning engine will not create a planning line for such a demand line. If the Location Mandatory field is not selected but any of the location setup values exist, then that is also considered a deviation and the planning system will react by outputting the "minimal alternative":
The item is planned according to: Reordering Policy = Lot-for-Lot ( Order remains Order), Include Inventory = Yes, all other planning parameters = Empty.

See variations in the setup scenarios below.

Setup 1:

Location Mandatory = Yes
SKU is set up for RED
Component at Location = BLUE

Case 1.1: Demand is at RED location

The item is planned according to planning parameters on the SKU card (including possible transfer).