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Chapter 1: Overview

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CHAPTER 1: OVERVIEW

Objectives

The objectives are:

Explain the concepts of supply chain in Microsoft Dynamics AX2012.

Describe the concept of product information management.

Discuss the concept of inventory management.

Explain the concept of warehouse management.

Describe the concept of quality management.

Introduction

The Overview module provides an introduction of the supply chain and logistic

features in Microsoft Dynamics AX 2012.

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Supply Chain

Supply chain management is the management of a network of interconnected

business involved in the ultimate provision of product and service package

required by the end consumer. There are many processes in the supply chain.

The Sales Order Processing figure displays the flow for a sales order through

Microsoft Dynamics AX 2012.

FIGURE 1.1 SALES ORDER PROCESSING

The Purchase Order Processing figure displays the flow for a purchase order

through Microsoft Dynamics AX 2012.

FIGURE 1.2 PURCHASE ORDER PROCESSING

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Product Information Management

Product information management is the process of managing information about

products. This information or data is required to purchase, sell, and manage the

product.

Product information is centrally managed in Microsoft Dynamics AX 2012. This

allows for it to be consistent and accurate, and can be used by more than one

distribution channel.

Products can be item or services, and products that are tracked in the warehouse

become inventory.

Inventory is the material and supplies a business carries either for sale or to

provide input in the production process. Inventory consists of many products that

are held by the company, that can include the following:

Raw materials and supplies

Products in production

Sub-assemblies

Finished products ready for sale

Inventory Management

Inventory management is planning and controlling inventory from the raw

material stage to the customer. Companies must consider inventory at every

planning level.

Companies can manage inventory at the aggregate level and the product level. Acompany's management team must establish decisive rules about inventory

products including consideration of the following:

The most important products to keep in inventory

The control of products through a company

The quantity of inventory to be ordered

The timing of when a product should be ordered

Microsoft Dynamics AX 2012 manages the cost and quantities of the products

that are purchased and sold. Regardless of whether a company is a retail business

with merchandise inventory or a manufacturing company with raw materials,finished products, materials, and work in process, the system provides inventory

from two standpoints: Physical and Financial.

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Warehouse Management

Warehouse management is a key part of the supply chain and controls the

movement and storage of inventory. Warehouse transactions include receiving

products from suppliers, putting away inventory into the warehouse, picking

products for sales, production, or transfer orders, and shipping products.

Tracking inventory can be simple or complex, depending on the business

requirements. The following are dimensions in which the inventory can be

tracked:

Site

Warehouse

Location

Pallet ID

Batch number

Serial number

Quality Management

Quality management makes sure that all products are of a constant quality by

enforcing strict guidelines to controlling the product and using routine checks

and test. Microsoft Dynamics AX 2012 lets you perform these test and checks.

Summary

The Overview module provides a quick introduction to supply chain and

logistics, and it introduces the feature areas in Microsoft Dynamics AX 2012 thatsupport them.

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Quick Interaction: Lessons Learned

Take a moment and write down three key points you have learned from this

chapter

1.

2.

3.

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