Planning Optimization support for reorder margin and issue margin

Enabled for	Public preview	General availability
Users by admins, makers, or analysts	Nov 19, 2021	Jan 14, 2022

Business value

With reorder and issue margins, your lead time setup can be simplified for both distribution and production scenarios. This is because the additional buffer margin can be controlled centrally and handled separately from the lead time.

Feature details

This feature enables the Planning Optimization Add-in for Supply Chain Management to include safety margins of types reorder margin and issue margin during master planning. Safety margins enable a setup that provides some extra buffer time beyond the normal lead time.

Reorder margin – the buffer time for placing the supply order

The system adds the reorder margin before the item lead time for all planned orders during master planning, thereby ensuring adequate time for a supply order to be placed. This margin is typically used as a buffer to allow time for approval or other internal processes that are required while creating supply orders. The reorder margin is placed between the supply order date and start date.

Issue margin – the buffer time for handling shipments

The system deducts the issue margin from the demand requirement date during master planning. This helps ensure that you have time to react to and ship incoming demand orders. This margin is typically used as a buffer to allow time for shipment and related outbound warehouse processes.

Planning Optimization benefits

With Planning Optimization, planners can benefit from:

• Improved performance with high data volume.
• Improved system performance made possible by moving master planning to its own service.
• Near real-time insights into requirement changes.

Geographic areas

This feature will be released into the following Microsoft Azure geographic areas:

• United States
• Europe
• United Kingdom
• Australia
• Canada

See also

Safety margins (docs)