Ricardo Ramirez Sierra IT Consultant

Background

In Demand Driven MRP (DDMRP), the calculation of Average Daily Usage (ADU) is a critical factor in buffer positioning and sizing. Currently, D365 F&O supports calculation methods such as Blend, which combine historical consumption and forecast data. However, there is no option that integrates past consumption with forward-looking projections based on actual transactions.

At Frigus BOHN, we already developed this functionality in our internal system, and it has proven to be highly effective—especially in scenarios with seasonal demand, where traditional forecasts fail to adequately capture real consumption patterns.

With the migration to D365 F&O, we will lose this functionality, which could negatively impact buffer accuracy and material planning in environments with high seasonality.

Proposal

Introduce a new calculation method in D365 F&O called Blended Mix, which enhances the existing Blend option by replacing forecast data with forward demand derived from historical transactions projected into a future horizon (e.g., the same period of the previous year).

This method relies on:

• Past Consumption Data (recent actual demand).
• Forward Consumption Proxy (historical demand projected forward, reflecting seasonality).
• Flexible Weighting between both periods to calculate a more robust and realistic ADU.

Expected Benefits

• Prevents the loss of critical functionality during migration to D365 F&O.
• Improves buffer accuracy in industries with strong demand seasonality.
• Reduces dependency on unreliable forecasts by using actual consumption data instead.
• Already tested and validated in Frigus BOHN with positive real-world results.
• Fully compatible with the current Blend configuration logic, ensuring easier adoption in D365 F&O.