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Supply chain | Supply Chain Management, Commerce
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Batch Below Hierarchy in 10.0.32; Reserving Locations with stock in Unavailable Batch Disposition

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Good morning! 
We have D365 F&O set up with WMS and noticed a change from our previous update of 10.0.28 when we updated to 10.0.32 over last weekend. 

Background: Our company is a cosmetics manufacturer, where our packaging components used in production orders do not need the same level of stringency as our chemicals. We've set up our reservation hierarchy on the packaging components to be Batch Below so that there is no hard requirement on the picking of packaging batches for production orders. 

We use Production orders based on BOMs to generate demand and set reservations on components required. In 10.0.28, the system would recognize that batches in an "Unavailable" Batch Disposition could not be used for production orders and would only reserve quantities of stock in locations that were not unavailable.  In 10.0.32 this seems to have changed. Now D365 reserves locations even if the stock in that location is in an unavailable batch disposition. 

Scenario

Batches:

  • Batch X, "Available/Available" , expiry 2099-01-01
  • Batch Y, "PendTest/Unavailable", expiry 2099-01-01 [a "bad" batch]

Stock:

  • WH1, Location 01-A-01, Item Number 1.001, Inv. Status Available, batch Y, 100 phys available.  
  • WH1, Location 01-A-02, Item Number 1.001, Inv. Status Available, batch X, 100 phys available. 
  • WH1, Location 01-A-03, Item Number 1.001, Inv. Status Available, batch Y, 100 phys available.  

PRD1 requires 200 units of 1.001
PRD2 requires 100 units of 1.001

In 10.0.28 our observed behavior was:

  • PRD1 would give an error indicating that the full stock of item 1.001 could not be reserved
  • PRD2 when released would be to reserve the location 01-A-02 for 100 units.

In 10.0.32 we observe the behavior to be: 

  • PRD1 will release and reserve 100 units against location 01-A-01 and 100 units against location 01-A-02
  • PRD2 will release and reserve 100 units against location 01-A-03. 

The picking work generated against the unavailable batches cannot be completed due to the Batch Disposition, and the production order cannot post any pick lists against the unavailable disposition. This seems to be in direct conflict with the fact that the system reserved the stock that is in Unavailable status - albeit indirectly since the reservation is technically only on the Location level. 


Questions:
Is this an expected change? Does this mean for all our BatchBelow products that the Batch dimension cannot be used to prevent reservations in any way?

Does anyone have any recommendations on how to account for Batch Disposition for reservations, while maintaining Batch Below on these items? 

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