Manage S&OP Variations with Shelf Life Items using Microsoft Dynamics AX 2012

Editor’s Note: As part of Dr. Hamilton’s latest series of
articles about solving S&OP scenarios using Dynamics AX 2012, this three-part
article focuses on some of the unique requirements for those products with
process manufacturing characteristics. These requirements represent slight variations in the baseline model for
solving common S&OP scenarios. This
first article covers S&OP variations for items with shelf life.

Sales and operations planning (S&OP) game plans
represent a cornerstone for effective supply chain management in a
manufacturing business.  The nature of an
S&OP game plan depends on several factors such as the need to anticipate
demand for an item and the need for linkage between a sales order and the
item’s supply order.  A given company
typically has several major scenarios where each scenario employs different key
elements in the S&OP game plan. 
These common S&OP scenarios have been summarized in a previous
series of articles, and they provide the foundation for understanding
variations.

Several S&OP variations must be considered for those products
with process manufacturing characteristics, such as food and chemicals.  These unique requirements include items with
shelf life dates or critical lot attributes, and they primarily impact the key
S&OP elements for sales orders and master scheduling logic in Microsoft
Dynamics AX 2012.  Other unique
requirements reflect production characteristics — such as co-products,
substitute ingredients, production sequencing and bulk/pack scenarios – which primarily
impact the key S&OP elements for master scheduling logic and planned batch
orders.

This three-part article will review several S&OP variations
that can be applied in AX 2012 for products with process manufacturing characteristics
and the …