Choosing the right coverage setting for when to Fulfill minimum

Why this blog post?
Multiple people have asked how the four different options to Fulfill minimum works and I was missing a detailed description of this. Therefore, I decided to describe the different options to ‘Fulfill minimum’ in Microsoft Dynamics AX.

So here we go:
Fulfill minimum defines when the Minimum (in this case 10) should be achieved. The minimum and the Fulfill minimum parameters are active for all Coverage codes, except for Manual that is not planned at all.

 

Today’s date
With ‘Today’s date’ planning will try to fulfill the minimum with a supply delivered today. However, unless the supply can be delivered on the same day (zero lead time) you will not be able to achieve this.

Example:
Product @Min is purchased with a lead time of 5 working days (7 calendar days)

 
 

Today’s date + procurement time
With ‘Today’s date + procurement time’ planning will fulfill the minimum with a supply delivered today + lead time + any safety margins. Compared to ''Today's date' adding the procurement time will prevent futures in most situations.

Example:
Product @Min is purchased with a lead time of 5 working days (7 calendar days)

 
 

First issue
With ‘First issue’ planning will place the supply to cover the minimum at the same time as the first issue (e.g. a sales order). This ensures that you do not carry unnecessary inventory for new products until there is an actual demand for them.

Example:
Product @Min is purchased with a lead time of 5 working days (7 calendar days) and Coverage code Period to combine demand within the Coverage period into one supply order.
Two sales orders for one pcs each exists: first on 17-07-2014 and second on 28-07-2014
 

 

Coverage time fence
With ‘Coverage time fence’ planning will place the supply to cover the minimum at the last day of the Coverage time fence.

Example:
Product @Min is purchased with a lead time of 5 working days (7 calendar days) and a Coverage time fence of 100 days. 

 

 
 

I hope this explained the meaning of the Fulfill minimum parameter.