Item priorities when running planning engine

When I run the planning engine, what are the items which will be planned first? Or, what is the order that NAV is using to create planning proposals for items?

 

Good and very important question. Planning (MRP and MPS) need to be very careful on how items are being planned since proposals might be a dependant demand for another item. This second item then needs to be planned afterwards. So, how is this done in NAV? Using the following priorities:

 

First. Items are ordered by "Low-level". This defines their level on the BOM. In other words, if this is an finished item, "Low-level code" would be 0. Thus, it would be planned first so their planned proposals are considered as dependant demand for items in the next BOM level. If you are curious, this "Low-level code" is defined on the item table and is being calculated when you certified the BOM.

 

Second. Within items at the same level in the BOM (ie. both are finished items), the item number will be used as an implicit priority.

 

Third. If now we are planning and item, this item could be defined at many locations using SKU, correct? In this case, the next priority would be the "Transfer-level code" which is defined on the SKU card. This defines the locations priority on the distribution network (ie. a distribution center needs to be planned first than the manufacturing plants).

 

Fourth. If transfer level code is the same, then location code would be used as an implicit priority. This is similar as with items when have same priorities.

 

So, the above priorities are how NAV orders the items to find their inventory profile and creates planning proposals.

 

But, how NAV prioritizes demands when pegging these demands to the existing stock? This is a topic for next post (I thought it is better to separate the different priorities that NAV considers to better understand the planning).