D365 Planning Optimization Service

The Planning Optimization service is a Microsoft cloud-hosted master planning engine designed to process vast amounts of transactions for a large number of products. Microsoft has updated the D365 Planning Optimization service to include most planning features for manufacturing. This may have previously held back some users from switching to the new planning service and they have also added a few new slick planning features that have not been available in D365.

Speed

The Planning Optimization service will drastically reduce your calculation time as well as unload the burden of the processing from your production environment. This results in a faster user experience as well as the ability to see results of new and changed demands in minutes rather than waiting overnight to see the planning impact. One of our clients saw their regular Master planning process, that usually completed in 20-25 minutes, complete in under 90-seconds using the Planning Optimization service. This speed enables near real time MRP planning calculation that can then allow you to update changes, or simulate what-if scenarios using your Dynamic plan, without the recalculation wait time previously required.

New Features

Recently the Planning Optimization service has been updated to support:

1. Process manufacturing
2. Multi-vendor sources for materials
3. Demand Driven MRP (DDMRP) methodology and priority planning for stocking warehouses.
4. Capable to Promise (CTP) planning dates can be automatically calculated and will update your related sales orders lines with the confirmed delivery and receipt dates.
5. Forecasting is automatically included in the MRP calculation and you will no longer need to run the Forecast planning pre-process prior.
6. Safety stock demand can be configured in the Coverage group to be pegged directly to the planned order created for it.
   
   This allows the priority of the safety stock order to be either a lowest priority and allow for other demand to allocate it if needed, or restrict the pegging for longer lead time items so your safety stock levels will remain dependable.
7. Sales orders and Sales order lines can now be excluded from Planning Optimization calculations if the user sets a new parameter on the order header ‘Master planning’ fast tab or on the line details ‘Sourcing’ tab. This can provide controls to excluded these orders until an approval, design or other check has been completed.
   

Setup

Planning Optimization is an Add-in for D365 Supply Chain Management and it will need to be installed from your LCS Project, on tier-2 or higher environments. No additional licensing is required. You will also need the Microsoft Power Platform integration setup. After installation, a new Planning Optimization parameters group will appear in the Master Planning setup module.

Simply turn on the Use Planning Optimization switch to leverage the new service.

Microsoft’s Planning Optimization service is faster, smarter, and included with your D365 license. If you need help moving your Master planning to the next level, connect with Strabo Partners to help guide you through it.