Min/Max Inventory & Requisition in Microsoft Dynamics NAV 2015

What I want to show today is how to work with Min/Max inventory levels in NAV.

Basically we have requested that minimum inventory levels will be set for the coffee mugs. So I have to configure that and show you how we can actually fetch that information into something called the Requisition Worksheet.

Locate the Item
So the first thing is to go into the Items.

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I’m going to find my coffee cup, so I’m just going to do this on the Coffee Mug – Standard.

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Open Item Card and configure the Planning tab
Then I go into the card and on the card itself we have a Planning tab.

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Set values for Planning Supply based on Demand
Here are all the values that I can set to basically have the system plan the item.

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What that means it’s planning the supply based on the demand. So this is truly what ERPs are designed for – it’s balancing out the supply and demand and so this is kind of the first step in that direction, that we are going to do in the videos.

So I’m going to change the Reordering Policy to be Fixed Reorder Quantity so that means now the system is going to consider this item in my planning.

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I’m going to say the reorder point is 2000, so if it goes below 2000 coffee mugs then we are going to order 2500.

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We are starting to sell a lot of these coffee mugs and we need to have everything available. And that’s it. I’m just going to set this. It includes the Inventory Level so basically if I go below 2000 then it orders 2500.

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I can go up here and see that right now we have 985, Quantity on Hand. 

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Requisition Worksheet
So if I run the Requisition Worksheet it should bring it up. Let me go there.

Go into the Requisition Worksheets.

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Now this worksheet is my planning worksheet, there are many planning worksheets in NAV, this is one of them. This is probably the simplest one, so the easiest one to use. Works will with min/maxes and other type of planning scenarios.

So if I go in here I can just hit Calculate Plan.

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And I’m just going to look at the year. I’m going to put my parameters as wide as possible, so I’ll just go from 2015 to 2017, just to show the functionality, but I could show a much smaller horizon if I wanted to. I’m not going to use any forecast. Just take that out and I’m just going to look at the coffee mug and then I hit OK. And it calculates.

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And it goes ahead and says well, since I want to have 2500, it suggests to buy 2500 in the blank location which I’ve been working out of, also in the blue location and in the red location. So it wants me to put twenty-five hundred everywhere.

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There are ways around this; I could have different planning parameters based on location and I will show that in a different video. Those are called Stock Keeping Units. But basically this is showing me that I can plan for all different locations.

If I only wanted to plan for one location I can just delete all.

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Planning for a single location
Then I hit Calculate Plan again. 

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In this case I’m only going to do for the blue location.

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And now it just shows for just one location, that’s perfect.

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So it tells me yeah I dipped under the two thousand and so I’m supposed to buy twenty-five hundred. Where am I buying it from? I can specify that by looking up the vendor. Now if I look up here it’s going to bring me a blank form. That’s because I have not set up any default Vendors for the item.

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Setting up Vendors
So let me go ahead and change that. Go to the item itself right here and just look at vendors.

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I usually get this from either Custom Metals or American Wood Exports.

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Lead Time Calculation
My Lead Time Calculation for Custom Metals is 14 days and it’s 30 days for the Wood Export.

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Now I just close this out and I go back into the Requisition Worksheet.

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If I look up the vendor I see those two vendors, and I’m going to get it from the metal place.

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The unit cost for this one is going to be $12.

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CarryOut Action Message
Now all I have to do is execute Carry Out Action Message.

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And I can actually print the purchase order as I’m doing this, but I’m not going to do that, I’m just going to generate the Purchase Order by clicking OK.

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It goes through the worksheet and creates a Purchase Order.

View Purchase Order
So if I now go into my coffee mug item I can see that I have 2500 on Purchase Order. I can click on that.

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For the Blue location, I hit Show Document.

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You can now see the Item with a Quantity of 2500 for the Blue location.

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And that was it for the Requisition Worksheet and min/max level in NAV.