Running MRP
You need to run MRP Materials Requirements Planning (MRP). MRP recommends purchase orders, transfers and work orders to balance supply and demand. to calculate demands and see make or buy recommendations. MRP processes demands for each product that qualifies in the Master Production Schedule Master Production Schedule (MPS). The planning of production (usually end item production), to satisfy current and forecast sales orders. The sum of MPS items must equal the agreed sales and operations plan for the items over each planning period. Planning periods are normally a month or a four week period. Items planned within MPS are exploded by MRP (Materials Requirements Planning) to produce the material and capacity requirements..
An MRP run explodes all manufactured items into component parts. It also calculates the total time needed to manufacture each item or batch and calculates initial start and end dates for each job.
In addition, demands are considered for all products that are below reorder level.
Calculations do not take account of resource capacity.
The results of the MRP calculations can be seen:
- In the MRP window.
- In a text file in a folder of the company's Attachments path. If you do not know the path to use, contact your system administrator. The file name is <company name>_MrpOutputLog.txt.
- Demands are grouped by product and sorted by order date.
- Sales orders which are linked, are processed as precise quantity and are excluded from MRP ordering and batch rules.
- Replenishment is listed on a new line for each stock item that has a replenishment value.
- If the Treat Overdue Purchase Orders as due for delivery today setting is selected on the MRP tab in Planning Settings, purchase orders that are overdue on the MRP Horizon Date are listed as Exceptions in the MRP output log.
- Once all demands have been processed, MRP explodes estimates Forecast project costs, based on expected costs of labour, machinery and operation times. In Manufacturing, estimates are produced for one-off items or non-repetitive batches. and BOM A stock assembly and process costing system, which provides facilities to specify the structure of finished items in terms of sub-assemblies and components.s to the next level. All phantom A BOM that is not used as a stock component or in raising works orders. A phantom BOM is created and structured to contain groups of components, like a standard BOM. It is used in printed reports on stock structures. It can be used to collapse the sub-assemblies to reduce work in progress (WIP) and lead-time. It operates as a standard sub-assembly. However, the product code for the finished item does not appear on a higher level works order. Within Manufacturing, the components and operations of phantoms (and nested phantoms) are added to the top-level works order. These components and operations are given a sequence number of zero. In some manufacturing systems, phantom BOMs are employed instead of effectivity dates, to use up old stock before introducing replacement parts. If so, the old item is created as a phantom with the new item, the child of the old. Old stock is used up before new stock is ordered. When a phantom has zero stock, it is deleted and the new item is made part of the original BOM. Phantom BOMs are also known as non-returnable assemblies and blow-throughs. BOMs are blown through a level. Exploded demands are added to the MRP considerations.
Current and projected stock levels can be viewed. Action can be taken on recommendations made by the routine.
Note: MRP does not consider alternative stock items in its calculations.
You can view the log file and check the details. You can also send it via email to other users.
Note: If a valid warehouse for obtaining replenishments is not available, this is reported as an error in the log file.
Ensure that you have:
- Selected the Apply Replenishment Horizon setting within the Planning Settings MRP tab.
Note: When you run MRP the Apply Replenishment Horizon setting determines whether MRP looks for replenishment from the demand due date or today's date.
To run MRP
Open: Planning > MRP > Processing > Run MRP.
- Specify how you want to run MRP, by entering the following information.
- To run MRP, click OK.
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The cut-off date for processing demands defaults to the date entered when demands were last read using MPS Master Production Schedule (MPS). The planning of production (usually end item production), to satisfy current and forecast sales orders. The sum of MPS items must equal the agreed sales and operations plan for the items over each planning period. Planning periods are normally a month or a four week period. Items planned within MPS are exploded by MRP (Materials Requirements Planning) to produce the material and capacity requirements.. Note: Items with a due date after this date are ignored. |
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This defaults to the number of days defined on the MRP tab in Planning Settings. It adds a number of working days to the lead time of every works order The authority to produce a part using the components specified on a BOM and the process specified on the routing. recommendation. You can change the default, if required. |
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This defaults to the number of days defined on the MRP tab in Planning Settings. It adds a number of working days to the lead time The number of working days elapsing between placing an order for an item and taking delivery. of every purchase order recommendation. You can change the default, if required. |
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This defaults to the number of days defined on the MRP tab in Planning Settings. It adds a number of calendar days to due dates to find the horizon for replenishments. You can change the default, if required. Note:
Use the Replenishment Horizon (days) box on the Manufacturing tab of Stock Item Details to store the horizon values for individual stock items. The stock item replenishment horizon value overrides replenishment values entered in Manufacturing. |
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Select the Aggregate Demand check box to group together demand for like products in a product time bucket A time period (for example, a day) in which all demands or requirements are added together and treated as one.. The product time bucket is determined from the Aggregate Demand (days) value set on the Manufacturing tab of Stock Item Details. If you select Aggregate Demand, the method of aggregating demand defaults to the method specified on the MRP tab in Planning Settings. Note: Sales orders which are linked with batch works orders are not included in aggregated demand. |
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Include demand from |
Choose which items are included. Note: We recommend you include demands from all sources. Select Even if they are sole demand items to ensure both make and buy recommendations are generated using the re-order quantity which is stored on the stock record. Do this even if stock levels falling below the re-order level is the only demand for the item. Leave Even if they are sole demand items clear if you do not want to re-order stock if there is no other source of demand. |
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Include replenishments from |
Choose which replenishments are included. Note: We recommend you include replenishments from all sources. |
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Ranges |
Choose the product ranges over which MRP is run. Note: We recommend you choose ranges which cover all information. |
What do you want to do?
Reference