MRP Best Practices and Tips for Dynamics AX

MRP – Best Practices and Tips for Dynamics AX 2012 and What’s New in D 365 FO Peer to Peer | Greater Scale | More Voices | Faster

Welcome and Introductions • Sr PFE Dave Phillips – Closing in on 15 years with MSFT – Started with Great Plains Software – davphill@microsoft. com • SEE Joe Tews – 5 years with MSFT – Prior consulting and work on Dynamics GP – In the process of visiting all MLB stadiums (9 down, next up San Diego)

Agenda • Welcome and Introductions – Save scenario type questions to the end please – Span 100 – 400 knowledge MRP levels – Might be some skimming in order to fit the time • MRP Basics (Dave) –MRP D 365 FO (Dave) • Live portion is VM on Platform Update 10 –MRP AX 2012 (Dave) • Live portion is AX 2012 R 3 CU 12 • Support update (Joe) – Safety Stock – CU 13 Released

Agenda (continued) • Demand Forecasting (Dave and Joe) – White papers • MRP Assessment (Dave) • MRP Performance (Dave) • Conclusion (Dave and Joe) • Q&A – Everyone –We plan on leaving 15 minutes and would like to begin with questions on Safety Stock, workaround, and private fix.

MRP Basics – Content Suggestions • Dynamics AX 2012 manual 80423 • https: //blogs. msdn. microsoft. com/axinthefield/top-10 -actions-totroubleshoot-performance-of-mrp/ • https: //blogs. msdn. microsoft. com/axmfg/2014/12/29/checklist-forimproving-mrp-performance-part-1 -how-to-run-mrp/ • http: //community. dynamics. com/ax/b/dynamicsaxmanufacturingrdtea mblog/archive/2015/01/02/checklist-for-improving-mrp-performancepart-2 -how-to-setup-planning-parameters • https: //technet. microsoft. com/en-us/library/jj 149695. aspx • https: //blogs. msdn. microsoft. com/axmfg/2012/12/05/logging-andtracing-dynamics-ax-mrp-runs/

MRP Basics (continued) • Dynamics 365 for Finance and Operations Enterprise edition (D 365 FO) • https: //docs. microsoft. com/en-us/dynamics 365/unifiedoperations/fin-and-ops/ • https: //docs. microsoft. com/en-us/dynamics 365/unifiedoperations/supply-chain/master-planning/master-plans • https: //docs. microsoft. com/en-us/ • https: //mbspartner. microsoft. com/AX/Topic. Catalog • D 365 FO Roadmap • https: //roadmap. dynamics. com/#application=049 f 7 cf 6 -2992 -e 61180 dc-c 4346 bac 0910#area

MRP Basics (continued) MRP is a set of techniques that uses bill of material data (and Routes), inventory data, and the master production schedule to calculate requirements for materials. It makes recommendations to reorder materials. Furthermore, because it is time-phased, it makes recommendations to reschedule open orders when due dates and need dates are not in phase. Time-phased MRP begins with the items listed on the Master Production Schedule and determines the quantity of all components and materials required to fabricate those items and the date that the components and material are required. Time-phased MRP is accomplished by exploding the bill of material, adjusting for inventory quantities on hand or on order and offsetting the net requirements by the appropriate lead times. *Source is APICS (see also Orlicky)

MRP Basics (continued)

MRP Basics (continued) Quick Demo of Dynamics 365 FO. Dynamics AX 2012 R 3 CU 12 as a contrast.

MRP Basics – Coverage Hierarchy

MRP Basics - Fences

MRP Basics - Margins

MRP Basics - Margins – Margins are cumulative

What’s New in D 365 FO • MRP Workspace • New “Disable all planning processes” field in MRP Parameters (Invent. Sum. Log. TTS) • Introduced pre-filtering of items so D 365 FO does not plan for items that do not have any demand (backported to R 3, later in deck) • Improved multi-threading to allow for true parallelization of threads

What’s New in D 365 FO • Improved the Planned Order list for easier usage • Cleaned up Logging when using Helpers • Improved the Action Graph form so it is simpler

What’s New in D 365 FO – Action Graph

What’s New in D 365 FO (continued) • There is a new Gantt chart – https: //mbspartner. microsoft. com/AX/Videos/832 – https: //dyntips. com/2016/04/27/ax 7 -gantt-chartcontrol/ • Some renaming. Futures are now called Delays and Delay Messages – For example, Calculated Delays form is Req. Trans. Futures. List. Page • Cloud support – Telemetry

Support Update (Joe) • AX 2012 R 3 CU 13 Just Released (LCS) – https: //update. lcs. dynamics. com/Download/Index/1230197 – Spreadsheet of CU 13 MRP KBs (see Dave) • Mainstream Support Lifecycle Timeline: – Dynamics AX 2009 SP 1: Mainstream ends 04/10/2018; Extended 10/12/2021 – Dynamics AX 2012: Mainstream ends 10/09/2018; Extended 10/12/2021 – Dynamics AX 2012 R 3: Mainstream ends 10/12/2021; Extended 01/10/2023

Support Update (continued) • Platform Update 10: August 2017 • Application Update (July 2017): July 2017 • Mainstream Support Lifecycle Timeline: – Modern Lifecycle Policy • Platform updates supported for 1 year after release • Application updates supported for 3 years after release – Platform Updates 2, 1, 7. 0: Expired – Application Updates 7. 0. 1, 7. 0: Expired

Support Update (continued) • Rolling Safety Stock Updates – Problems introduced with KB 3190607 (included in CU 12 +) – Essentially figures safety stock on a moving, or “rolling”, basis – Can be avoided by selecting the option “Consider shelf life” on the Master plan setup IF using Period coverage • Development is currently in the process of fixing – LCS Tracking ID 3849234: Period Coverage – LCS Tracking ID 3849393: Min/Max Coverage (Fulfill Min = Issue) – LCS Tracking ID 3849394: Min/Max Coverage (Fulfill Min = Today’s Date)

Support Update (continued) • Other Notable Fixes – KB 3178134/3181387: Problems with BOM level recalculation, can lead to planned orders not generating (included in CU 12) – KB 3159477/3190002: Performance optimization due to circularity – KB 4022020: Checking circularity process for large amount of data – KB 4022292: MRP Auto-firming performance

Demand Forecasting • Demand Forecast became available with Dynamics AX 2012 R 3 • Fills vacancy left by TXT Demand Planner • https: //technet. microsoft. com/enus/library/dn 767954. aspx • https: //community. dynamics. com/ax/b/dynami csaxtipoftheday/archive/2014/06/15/configuri ng-demand-forecasting

Demand Forecasting (continued)

Premier MRP Assessment • The Premier MRP Assessment is a tool that examines the health of your MRP environment (R 3 only right now). • How do you solve MRP issues? – See what KBs or Cumulative Updates (CUs) need to be installed – Check MRP Configurations – Investigate data integrity (migration and imports) • The tool automates those steps and generates a report.

Premier MRP Assessment (report)

MRP Assessment (continued) • At a high level, early, we’ve had some discussions about broadening use of the tool • Scripts are updated every quarter • https: //blogs. msdn. microsoft. com/axinthefield /material-requirements-planning-mrpassessment-for-dynamics-ax-2012 -r 3/

MRP Performance (AX 2012) • Dyn. Perf 2. 0 tempdb size issue – See Dave for patched version or use Dyn. Perf 1. 2 • https: //blogs. msdn. microsoft. com/axsupport/2 016/09/19/speed-up-master-plan-when-youhave-large-number-of-inactive-items/ – This is a large KB – May need to index (e. g. query plan of Req. Calc. Neutral. Deleterun)

MRP Performance (continued) • New fields created by KB

MRP Performance (continued) • Recent R&D Collaboration – Microsoft Dynamics AX Server Configuration Utility – set Maximum Buffer Size to 128 KB – Microsoft Dynamics Configuration Utility – set Cache Settings to Best Response Time • Dynamics AX Client Configuration file – add line “performance. Profile, Text, 3, ” – Dynamics AX 2012 R 2 Server Configuration (System Administration | Setup | System | Performance Optimization fast tab)

MRP Performance (continued) • Dynamics AX 2012 R 2 Server Client Performance Options (System Administration | Setup | System with recent kernel) – Caution with these Client Performance adjustments • Citrix adjustment https: //msdn. microsoft. com/enus/library/aa 970912%28 v=vs. 100%29. aspx? f =255&MSPPError=-2147217396

MRP Performance (continued) • Ensure breakpoints are turned off in Live (30 – 40% performance hit) • Adequate hardware resources • More AOS servers and parallelize the MRP run further – Dedicated AOS batch server for MRP (not on DB machine) – When setting up multiple AOSs use the Server Configuration | Performance optimization tab to define how AOS's work together

MRP Performance (continued) • One (heavy) routine at a time – Don’t run MRP with other batch processes at the same time, especially not with anything that’s just as heavy (Inventory Close for example) – Don’t run MRP with anything running on the OS (e. g. updates, watch movies, etc. ) • Orphan record script improved (demo) – Unfinished Scheduling Processes form

MRP Performance (continued) – The old MRP plan is no longer deleted at the beginning of a MRP run. Instead a new plan is created in table Req. Plan. Version that is referenced by other Req (MRP) tables. This is done so the old plan can still be used during a run of MRP. However, at the end of the MRP run the old plan set to Inactive and the new plan is set to Active. – If a MRP run is clean a job spawns to purge the Inactive plan

MRP Performance (continued) – If a MRP run is a terminated for some reason the Plan. Version records can be orphaned • Use of Helpers will improve performance – Number of Helpers used during master planning needs to be less than or equal to the maximum number of threads allowed on the batch server • How many helpers? – Retail and Distribution (lots of independent items): Use many helpers because there is no dependency between items

MRP Performance (continued) – Manufacturing (lots of BOMs and shared subcomponents): Use less helpers because dependency between items may lead to waiting times. • Bundle Size? – There is no magic formula for determining the bundle size – Each bundle is in memory, so too many chunks can decrease the performance due to memory hogging

MRP Performance (continued) – For BOMs: same complexity items sometimes have similar item IDs, so they may get in the same bundle, that will take very long to process. • Helper mortality because of time out • Helpers are found on the Master Scheduling form • Bundle Tasks are found in MRP Parameters form

MRP Performance (continued) • Example of format that helped a Premier Customer.

MRP Performance (continued) • Do not Delete Plans • On Planned Order Number, Number Sequence ensure Preallocation is turned on. • Use the Master Plan, Time Fences to turn off Action and/or Future Messages. • Poor SQL constructs – Indexes, Queries, Caching • Poor code – Avoid Nested loops

Questions and Answers • Questions, comments, discussion points?

Conclusion This concludes the MRP – Best Practices and Tips for Dynamics AX 2012 and What’s New in D 365 FO Extend thanks to Chad Aberle, Roxana Diaconu and Chip Anthony for their thoughtful input and feedback on this content.