Make to stock (MTS) is a manufacturing strategy where products are produced based on forecasted customer demand, ensuring items are available when needed. Dynamics 365 Business Central simplifies the make to stock process by offering integrated tools to manage sales forecasts, production planning, and production orders. Here's how Business Central optimizes the MTS workflow:

1. Creating a Sales Forecast

The first step in the make to stock process is creating a sales forecast, which serves as the foundation for production planning. In Dynamics 365 Business Central, this is easily done using the Production Planner role-based home page, which provides tailored actions and activities based on the user’s role.

From the home page, you can access the demand forecast, where you can either select an existing forecast or create a new one. The system allows users to configure forecasts by various time frames (e.g., day, week, month, or year), making it easier to track anticipated demand for products like a bicycle. This forecast becomes the basis for generating production plans and managing stock efficiently.

2. Generating a Master Production Schedule

Once the sales forecast is established, the next step is to create a master production schedule (MPS). The MPS helps production planners generate a detailed plan of orders based on the forecasted demand.

Using the Planning Worksheet in Business Central, planners can generate production, assembly, purchase, or transfer orders based on the forecast. Business Central's embedded intelligence assists planners by calculating the regenerative plan and suggesting optimal production and purchase orders. For example, in this case, we need to create a production plan for bicycles in May. The system automatically suggests the appropriate quantities and order types based on the demand forecast, helping planners make informed decisions.

3. Creating and Managing Production Orders

After generating the master production schedule, planners can convert the suggested orders into production orders. The Planning Worksheet provides options to accept action messages and carry out the suggested orders. Once accepted, Business Central creates firm production orders, which are visible in the activity queue on the production planner’s home page.

In this example, a production order for 150 bicycles is created based on the demand forecast. The system also allows users to specify additional options for handling assembly, purchase, and transfer orders, making the process highly customizable. Once the production order is confirmed, the planning worksheet is cleared, and the production order is tracked until completion.

Benefits of Make to Stock in Dynamics 365 Business Central

• Optimized Production Planning: Business Central provides automated tools that streamline the creation of production schedules, ensuring businesses can efficiently meet forecasted demand.
• Increased Visibility: With a role-based home page and integrated tools, planners gain clear visibility into all production-related activities, enabling them to make data-driven decisions.
• Reduced Inventory Costs: By aligning production with demand forecasts, businesses can avoid overproduction, minimize stockpiling, and reduce inventory holding costs.
• Improved Efficiency: Business Central automates many manual tasks, such as generating production orders and calculating demand, improving the overall efficiency of the manufacturing process.

In summary, Dynamics 365 Business Central helps businesses effectively manage their make to stock process by streamlining the forecasting, planning, and production workflows. This ensures businesses can meet customer demand while optimizing their inventory and production resources.