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Order modifiers in Microsoft Dynamics 365 Business Central let you adjust what the planning engine calculates. You set up minimum order quantity, maximum order quantity, and order multiple on the item card or the stock keeping unit card.
The minimum order quantity sets the smallest amount the system will order. The maximum order quantity caps the order so it never exceeds that amount. The order multiple rounds the order up to the nearest multiple you define.
A typical example is buying full pallets from the Far East. If a pallet holds 1,200 pieces, you set both the minimum quantity and the order multiple to 1,200. A demand of 1,500 then becomes two pallets.
Order modifiers apply to the reordering policies Lot-for-Lot, Fixed Reorder Quantity, and Maximum Quantity. They do not apply to Order planning.
What order modifiers do in the planning engine
When you plan an item, the planning engine runs and calculates how much to order and which dates the orders are planned for. The order modifiers adjust that calculation afterwards. So the system first works out that it needs a specific quantity on a specific date, and then applies the modifiers when it creates the actual purchase order, transfer order, production order, or assembly order.
You set up the modifiers on the item card or the stock keeping unit card. There are three of them.
- Minimum order quantity: the system will order at least this amount.
- Maximum order quantity: the order will not exceed this amount.
- Order multiple: the order is rounded up to the nearest multiple of this number.
Using order modifiers for full-pallet purchasing
A common case is Lot-for-Lot planning when you buy from a supplier in the Far East and you purchase in whole pallets. Say each pallet holds 1,200 pieces. You set the minimum order quantity to 1,200 and the order multiple to 1,200.
The minimum quantity of 1,200 makes sure you buy at least one entire pallet. The order multiple of 1,200 makes sure you only buy in whole pallets. If you have a demand of 1,500 pieces, the system rounds it up to two pallets, or 2,400 pieces.
Which reordering policies support order modifiers
Order modifiers work with Lot-for-Lot, Fixed Reorder Quantity, and Maximum Quantity. They do not apply when you use Order planning. Keep this in mind when you choose a reordering policy and want to control batch sizes.
Q&A
What are the three order modifiers in Business Central?
The three order modifiers are minimum order quantity, maximum order quantity, and order multiple. You set them up on the item card or the stock keeping unit card.
How do I set up full-pallet purchasing in Business Central?
Set both the minimum order quantity and the order multiple to the number of pieces on a pallet. For a pallet of 1,200 pieces, set both to 1,200. This makes sure you always buy at least one full pallet and only in whole pallets.
What does the order multiple do?
The order multiple rounds the order quantity up to the nearest multiple of the number you define. If the multiple is 1,200 and the demand is 1,500, the order becomes 2,400.
Which reordering policies do order modifiers apply to?
Order modifiers apply to Lot-for-Lot, Fixed Reorder Quantity, and Maximum Quantity. They do not apply to Order planning.