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Complicated MRP Situtaion

  • 31 January 2023
  • 2 replies
  • 124 views

Need help w/ a work around, w/ the MRP Detail Inquiry and demand. 

My company purchases components for BOMS (assembled in the US at our facility) from China. 180 day lead time

When running MRP, i would like it to tell me what i need to order today, to satisfy demand from 180 days to 210 days from now.

I understand that we will forecast out 7+ months, which we do.

The issue we are having a hard time working around is that the MRP, from our forecast, displays the demand for the assemblies and wants us to create production orders. The problem is, we do not assemble ahead of time, we create those production orders upon receipt of order from our customers. So i can’t create the production orders MRP is wanted me to create based off the forecast, thus it is not showing a demand for those components that i would need to buy from China.

 

Example
Component A (180 leadtime from China), we maybe sell 10 a month of this component but w/in BOM X, BOM Y, and BOM Z we can use up 600 of Component A. in those production orders that month.

Somehow i would like for the MRP to show the “demand” of 610 for the next 6-7 months w/ out releasing those planned production orders for BOM X, Y, and Z because that is not how we create production orders. Only create production orders upon receipt of customer's order.  

 

I wish the MRP system would go ahead and assume that those production orders were released, and work its way through the system, deducting inventory for those components each month. That is how our old MRP system worked. 

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Best answer by kristianharianja 1 February 2023, 02:26

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2 replies

Userlevel 5
Badge +3

Hi @ccnelson Although MRP suggests you to generate production orders for the items that need the component, it doesn’t mean that you have to generate it today because it also tells you when, shown by column Action Date of the MRP Display. Only when customer place the order, you create production order either from SO » generate prod order or convert the MRP plan into production order.

MRP will also display the components needed (both quantity and action date) by your forecast, not only the parent/subassembly items. If it doesn’t, it’s usually due to the finished goods replenishment source is not set to Manufacturing (under Item Warehouse Details) or the item doesn’t have BOM to be exploded by MRP or the demand warehouse has MRP checkbox unticked for forecast. I would say this is configuration issue.

Userlevel 5
Badge +1

I understand the frustration. A while ago we were trying to solve for essentially the same thing, where we didn’t want to release a production order but wanted to order the components.  have you looked at the group planning requirements?  you may be able to consolidate by doing that?

 

 

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