ATP-CTP Calculation of Order Promising Dates MS Dynamics 365 Business Central Ing.J.Skorkovský,CSc. MASARYK UNIVERSITY BRNO, Czech Republic Faculty of economics and business administration Department of business management ATP-CTP (CZ verze vysvětlení) •V Dynamics 365 Business Central se používají dvě hlavní metody pro slibování termínů dodání: ATP (Available to Promise) a CTP (Capable-to- Promise). 1.ATP (Available-to-Promise): Tato metoda vypočítává dostupnost na základě aktuálních zásob a plánovaných příjmů. Pokud máte dostatek zásob na skladě nebo jsou na cestě, ATP vám poskytne datum, kdy můžete objednávku splnit1. 2.CTP (Capable-to-Promise): Tato metoda jde o krok dále a zahrnuje nejen dostupné zásoby, ale také výrobní kapacity a dodací lhůty od dodavatelů. CTP vypočítává, kdy můžete objednávku splnit, i když musíte nejprve vyrobit nebo objednat potřebné zboží1. •Obě metody pomáhají zlepšit přesnost a spolehlivost vašich dodacích termínů, což vede k lepší spokojenosti zákazníků. • ATP-CTP (Eng version) •In Dynamics 365 Business Central, there are two main methods for promising delivery dates: ATP (Available-to-Promise) and CTP (Capable-to-Promise). •ATP (Available-to-Promise): This method calculates availability based on current inventory and projected revenue. If you have enough inventory in stock or on the way, ATP will give you a date when you can fulfill order 1. •This method goes one step further and includes not only available inventory CTP (Capable-to-Promise): but also production capacity and lead times from suppliers. CTP calculates when you can fulfill the order, even if you have to produce or order the item first. •Both methods help improve the accuracy and reliability of your delivery times, leading to better customer satisfaction. • Calculations ATP-CTP •When Business Central calculates the customer’s delivery date, it performs two tasks: • •Calculates the Earliest Delivery date when the customer has not requested a specific Delivery date. • •Verifies if the delivery date requested by the customer or promised to the customer is realistic. • Introduction I. •A company must be able to inform their customers of Order Delivery dates. • •The Order Promising Lines page enables you to do this directly from a sales order. • •Business Central calculates shipment (earlier) and delivery (later)dates based on an item’s known and expected availability dates, which you can promise to customers. • •If you specify a Requested delivery date on a sales order line, then that date is used as the Starting point for the following calculations: 1.Requested Delivery Date – Shipping Time = Planned Shipment Date 2.Planned Shipment Date - Outbound Warehouse Handling Time = Shipment Date Requested Delivery Date Shipment Time Outbound W. Handling T. Shipment Date Planned Shipment Date Planned Shipment Date Planned Delivery Date or Picking Introduction II. • 1.Requested Delivery Date – Shipping Time = Planned Shipment Date 2.Planned Shipment Date - Outbound Warehouse Handling Time = Shipment Date Requested Delivery Date Shipment Time Outbound Handling Shipment Date Planned Shipment Date Planned Shipment Date Planned Delivery Date Planned Shipment Date Artic Shippment Time OWHT Shipment Date reinforced-plastic-inventory Nebo to může být znázorněno takto ATP-CTP •Available-to-Promise •Capable-to-Promise • •ATP – based on the reservation functionality of the system, which checks availabilities (Calculation of Delivery date) • •CTP – based on WHAT-IF scenarios. That is, calculating the earliest time when the requested item will be available. It calculates replenishment. • • • If there are no existing any Item Ledger entries, no incoming orders of the type Purchase, Transfer, Return or Production - then the system calculates the nearest date, creates order lines and reserves stock items. • • • • • ATP-CTP •Select Available-to-Promise if you want to calculate the Earliest date that the item will be available with respect to inventory, scheduled receipts, and Gross Requirements. • • •Select Capable-to-Promise if you know that the item is presently out of stock and you want to calculate the earliest date that the item can be available by issuing new replenishment requisitions. • •Before an item can be included in the Order Promising calculation, it must be marked as Critical. •This setup ensures that non-critical items do not cause irrelevant order promising calculations. Gross Requirements-explanation •Gross Requirements: •Gross requirements represent the total quantity of a product that is needed to satisfy the demand forecast. This includes both the demand from external customers and the demand generated by the production plan for other products within the organization. •In simple terms, gross requirements are the total demand for a particular item before considering any existing inventory. • Gross Requirement=Hrubý požadavek Net Requirements-explanation •Net requirements, on the other hand, take into account the current inventory levels and the scheduled receipts (orders or production) that are already in the pipeline. •Net requirements are calculated by subtracting the current on-hand inventory and scheduled receipts from the gross requirements. This calculation helps determine the actual quantity that needs to be produced or procured to meet the demand. • Net Requirement=Čistý požadavek Important equation (relation between GR and NR) Net Requirements = Gross Requirements - (On-Hand Inventory + Scheduled Receipts – Schedule Deliveries –Safety Stock) ATP –CTP reinforced-plastic-inventory vozik warehouse230624-1-009 Artic amsted-factory AnaComCustomerService Customer 1D - OWHT Blues Location Shipment time Customer Card Blue Location card tab Warehouse ATP –CTP – Order Promising Setup The Offset Time Delay -> Compensation (Time) field contains the amount of time the program must wait before it can issue a new purchase order, production order or transfer order. It was already mentioned in the section describing reservations. The period begins on the current date Used Time units can be days, working days, weeks, months, quarters or years Parameters used for ATP-CTP calculations Times ATP-CTP Numbre of days Where it's set OWHT 1D Location Blue IWHT 1D Location Blue Lead Time Calculation 4D Item Card Safety Lead Time 2D Item Card Shipping Time 3D Customer Cards Offset 1D Order Promising Setup OWHT=Outbound Warehouse Handling Time IWHT=Inbound Warehouse Handling Time Lead Time Safety Lead Time IWHT OWHT Shipment Time Vendor Customer Locations setup Lead time calculations Setups Lead time calculations-explanation-CZ version V Business Central hodnota pole Lead Time Calculation na kartě dodavatele a na kartě zboží ovlivňuje, kdy je třeba objednat zboží, aby bylo doručeno včas. 1.Lead Time Calculation na kartě dodavatele: Tato hodnota určuje dobu, kterou dodavatel potřebuje k dodání zboží od okamžiku objednání. Pokud je tato hodnota nastavena, Business Central ji použije k výpočtu data objednávky na základě požadovaného data doručení1. 2. 2.Lead Time Calculation na kartě zboží: Tato hodnota určuje dobu, kterou potřebujete k přípravě zboží na skladě, včetně času na zpracování a manipulaci. Pokud je tato hodnota nastavena, Business Central ji použije k výpočtu data, kdy bude zboží dostupné k vyzvednutí1. 3. Při zadávání objednávky Business Central kombinuje tyto hodnoty, aby vypočítal optimální datum objednávky a očekávané datum doručení. Pokud například zadáte požadované datum doručení, systém automaticky vypočítá datum objednávky odečtením celkové doby dodání (dodavatel + zboží) od požadovaného data1. Požadované datum doručení na kartě Dodavate ->Requested Delivery date (nebude uvažováno v našem jednoduchém modelu) Náš model bude brát do úvahy LS and SLT POUZE na kartě zboží (viz vyjádření na snímku 18) Lead time calculations-explanation-ENG version In Business Central, the value of the Lead Time Calculation field on the Supplier tab and the Item tab affects when you need to order goods to be delivered on time. Lead Time Calculation on the Supplier card: This value determines the amount of time it takes the supplier to deliver the item from the time of ordering. If this value is set, Business Central uses it to calculate the order date based on the requested delivery date. Lead Time Calculation on the Item Cards. If this value is set, Business Central will use it to calculate the date the item will be available for pick-up. When you place an order, Business Central combines these values to calculate the optimal order date and expected delivery date. For example, if you enter a desired delivery date, the system automatically calculates the order date by subtracting the total delivery time (supplier + item) from the desired date. Simple model (ATP Calculation) I. First of all, it is also necessary to create a new item card with the parameters that will be part of the calculation, set the parameters of the model location and the customer to whom we will deliver our model item. Working day will be set in this PWP presentation to 3.7.2023 (2023/07/03) Due to the type of license in our BC instances allowing to work realistically only from 1.11. to 28.2. of that year, we set today our Working date to 3.11.2027 for real modeling of ATP-CTP. More Tabs Simple model (ATP Calculation) II. Simple model (ATP Calculation) III. Customer 1000 Purchase of item JB_011 by use of Item Journal F9 Item ledger entry Important Quantity (will be used later) At this moment we have a total of 71 pieces of our items in stock in location Blue Items by Locations & Availability Items by Locations & Availability by period Sales Order (our Customer must have set Shipping time to 3D) Only Sales Order Line presented in this PWP presentation ! We have already purchased 71 items by use of Item Journal and we require only 50 pcs – see a quantity field in Sales Order line. Lead Time nor Safety Lead Time will be not used in this part of the model. In this example, we do not consider manually entered Requested Delivery Dates (if visible) into the Sales line (each line may have a separate Requested Delivery Date). If we enter this date in the sales order header, where the field also exists, this value is automatically transferred to all lines. In our example we will not consider this. 1st part of the Sales Line 2nd part of the Sales Line 3D=Shipping time 1D=OWHT Sales Order (our Customer must have set Shipping time to 3D) 2nd part of the Sales Line 3D=Shipping time 1D=OWHT Explanation of dates Sales Order : Order Promising function See next slide What's left in stock (71-50=21) Before ATP activation and ATP proposal approval ATP Calculation ATP calculations Before use of ATP Suggestion ATP Calculation After accepting the calculation, it was not reflected in the sales line. Manual modification of the required quantity in the sales order line 50->100 Reason for change Quantity per 100 pcs-> Purchase and related parameters such as Lead Time Calculation ( in our Setup =4D) and IWHT (1D) CTP Caluclation 100=71+29 8 days 12 days=4D+8D It will be necessary to accept Purchase process (after the CTP calculation) July 3 -> July 11 = 8D = 4D (Lead Time) + 2D (Safety Lead Time)+ 1D (IWHT at Location Blue) + 1D Offset) Specifies the period of time to wait before issuing a new purchase order, production order, or transfer order. Shipping time +OWHT=3D+1D We're 29 units short We use CTP because ATP has already been used and more, we need to plan the replenishment of the stock with 29 pcs Part of Sales Line : CTP calculation Accepted calculation 3 days 1 day Sales process 15.7.-11.7. = 4D = 3D (Shipment Time)+ 1D (OWHT from Location Blue ) 4 days A realistic model in classroom teaching Zdroj Specifikace Hodnota Lokace Blue IWHT 1D Lokace Blue OWHT 1D Item Card Lead Time 4D Item Card Safety Lead Time 2D Customer Shipping Time 3D OP Setup Offset time 1D CTP do finálního výpočtu zahrnuje soboty a neděle! User role settings Setup LT and SLT Purchase item „kosa ocelová luční“ We used Item journal ->71 pcs to location BLUE Setup Shipping time (new customer) and Order Promising Setup Sales order (line only) 1st part 2nd part 3 days-ST 1 day=OWHT Action- Plan-Order Promising-CTP 15.11. <-> 11.11 -> 4 Days = Shipping Time +OWHT=3D+1D 11.11.<-> 1.11.-> 10 Days = LT+SLT+IWHT+Offset+2 days (Suterday- Sunday)= = 4D +2D +1D+1D+2D (weekend) Action- Plan-Order Promising-CTP Sales line 2nd part 3 days-ST 1 day=OWHT Reservation Add Vendor code Purchase order line F9 It was originally bought in the wrong location and corrected by transfer Další varianta pro stejné parametry (pouze WD=2.12.2027 místo 1.11.2027) 8 D + 2D weekend 4D Varianta příkladu z výuky 20241125 8 D + 2D weekend 4D + 2D weekend Reservations I. Proposed refill Reservations II. Carry out action message Purchase Order Purchase Order line 1st part Purchase line 2nd part Purchase line Sales line 3 days See 3 days calculation Calculation purchase Planned Receipt date + Inbound warehouse handling time + Safety Lead time = Expected receipt date 7.8. +2D (Safety Lead Time) +1D (IWHT)= 11.8 Unavailability date Sales line 90 Days Reqested Delivery date options • Shipment date + outbound whse. handling time = Planned shipment date • Planned shipment date + Shipping time = Planned delivery date •Requested delivery date - Shipping Time = Planned shipment date •Planned shipment date - outbound whse. handling time = Shipment date Planned Delivery Date =Shipping Time + OWHT + Shipment date Requested Delivery Date =Shipping Time + OWHT + Shipment date Requested Delivery Date & ATP-CTP Working day will be set to 3.7.2023 (2023/07/03) We will sell all item JB_011 in order to get Inventory=0 F9 Sales order 1 1st part of the Sales Line 2nd part of the Sales Line Shipment time OWHT Sales order 2 (Action -> Plan -> Order Promising) 4D = 3D (Shipment Time)+ 1D (OWHT from Location Blue ) 4D Reserved quantity Part of the Sales Line Requsition Worksheet Carry out action message Purchase Order Purchase process (after the CTP calculation) July 7 -> July 14 = 7D = 4D (Lead Time) + 2D (Safety Lead Time)+ 1D (IWHT at Location Blue) Purchase line •order date + lead time calculation = planned receipt date •planned receipt date + inbound whse. handling time + safety lead time = expected receipt date 3D Combination of CTP and reservations 1. Create a new item with the same parameters as the stock items already used (LT=4D, SLT=2D,...) – Date 03.07.2023 2. Purchase 10 pieces of this item using Item Journal 2. Moving the working date into the future - 17.7.2023 3. Creating a Purchase order (20 Ks) with the understanding that this document will not be charged and will serve as an additional source for booking in addition to the stock 3.a ->Working date to 31.7.2023 4. Sales order for 40 pcs of this item 5. Reservation with actual Item ledger entries (stock) lines 3 pcs and 7 pcs 6. Reservation with actual Purchaser Order lines 11 pcs and 9 pcs 6. CTP and accept calculations 7. See field reservation 8. See Purchase order dates 9. See Sales Order dates Purchase order Sales order and reservation Sales Order line – important part for the model Shippment time OWHT Requisition worksheet 7D=4D (Lead Time) + 2D (Safety Lead Time)+ 1D IWHT 3D= 2D Safety Lead Time + 1D IWHT Shippment time OWHT Sales Order Line A Different Perspective on the Planned delivery date calculation 18.7. 25.7. 25.7. 4D =Lead Time 3D = 2D Safety Lead Time + 1D IWHT 7D = 4D +3D 25.7. 29.7. 4D = 3D Shippment Time + 1D OWHT Availability by period Planning by use of Requision worksheet Completing the relationships between Order Date, Planned Receipt Date and Expected Receipt Date. ATP-CTP is not used in this model Part of Sales Order line (Item has the same parameters already used) Part of RQWS line (Item has the same parameters already used as well as Vendor) Part of Purchase Order created from RQWS line Order Date + Lead Time =Planned Receipt Date = 4D Planned Receipt Date + Safety Lead Time +IWHT= Expected Receipt Date Carry out LT=4D SLT+IWHT =3D