Planning items – a real world example

Dynamics 365 Supply Chain Management

The article discusses the functionality of Planning Items in Dynamics 365 Finance and Operations (D365 F&O) for process industries.
Planning Items are a best fit for industries with fixed or natural ratios between co-products produced on batch orders.
The poultry industry is used as a real-life example to explain the concept of Planning Items.
In the example, a whole chicken is the planning item and four different cuts are the co-products.
Master planning considers the concept of Planning Items in demand and supply calculations.
Even if the demand is only for a specific cut, a production order will be created for the whole chicken to produce all the co-products.
The article provides screenshots from D365 F&O to illustrate the process of creating batch orders and defining the input and output items.
The article concludes by emphasizing the importance of utilizing Planning Items when there is a suitable business case.

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