Creating and maintaining Material Requirements Planning scenarios
Menu path
Manufacturing ➔ Planning ➔ MRP engine
Introduction
You can define a material requirements planning (MRP) scenario, run the MRP engine to process the requirements, and generate the advices accordingly in this screen. The MRP engine is used to perform complex MRP calculations in real time. You can then view the results of the material and resources calculation in a pegging report. For more information on the pegging report, see Overview of pegging.
The MRP engine is useful if you want to generate an MRP (production advice/purchase advice/resource planning/hour planning) for a group of specific items, in the least amount of time. If you have many transactions and changes of factors when using the other modules of Exact Globe Next, it may take longer to run the MRP engine. This is because the MRP calculations are based on multiple factors, such as delivery time, batch size, stock, and production lead time. For example, if you want to generate the MRP calculation for a range of items only, you can use the MRP engine to perform a calculation for the specific range of items within a shorter period of time as compared to the time needed to perform a calculation for all items.
With the MRP engine, you can use the scenario settings to plan for a specific item or range of items according to specific planning criteria. The MRP engine allows you to generate the materials requirement planning by taking into consideration additional criteria. You can choose to calculate the plan by taking into consideration requirements from the forecasted orders in the master production schedule (MPS), the labor capacity, and/or machine capacity. For more information on the MPS, see Overview of Master Production Schedules. You can also compare the stock levels with the purchase requirements. For more information, see Creating and maintaining Master Purchase Schedules.
The MRP generated by the MRP engine can be viewed in a production advice for manufactured items, or a purchase advice for a purchased item. For more information on the production advice and purchase advice, see Production advice and Generating purchase orders respectively.
You can also generate the material requirements plan at Manufacturing ? Planning ? MRP. For more details on the MRP, see Overview of MRP. The following are the options available if you generate the MRP using the MRP engine:
Manufacturing ? Planning ? MRP |
Manufacturing ? Planning ? MRP engine |
The MRP overview reflects the current material requirements. |
The MRP overview captures the material requirements at the point the MRP engine processes the specific planning scenario. |
The MRP overview is generated based on the requirements of confirmed orders and requests. |
The MRP overview can be generated based on the requirements of forecasted orders. |
The MRP overview displays the standard items that are required and when it is required. |
In addition to the MRP overview of standard items, you can also view the production or purchase advice and the labor and/or machine hour planning. The production and purchase advice prompts the user to produce subassembly items or purchase materials that are facing a shortage in stock level. |
Planning is generated for the finished product of a bill of material (BOM). |
Planning is generated for all levels of a BOM. |
What version are you using?
The information in this document is applicable to product update 407 and higher. If you have versions lower than this, certain features explained here will not be applicable.
How do I define the material requirements planning scenarios?
- In the MRP engine: Scenario screen, click New.
- At Scenario: MRP, type or select an existing scenario code.
- At Description, type a description for the scenario.
- Define other relevant criteria, and then click Process.
Fields
Scenario: MRP
Type or select a scenario code to search for the MRP scenario. If you are making changes to an existing MRP scenario, this information cannot be edited. However, if you do not have any saved scenarios, you cannot select any and can only create one here. This is mandatory.
Description
Type a description for the MRP scenario. This is mandatory.
Assortments section
Assortment
Click Select to select the assortment(s) to run the MRP engine for items linked to the selected assortment(s).
Items section
Item code, to
Type or select an item code or a range of item codes to run the MRP engine for the selected item(s). Alternatively, select the All check box to run the MRP engine for all items.
Stock controlled
Select an option to run the MRP engine for stock controlled or order controlled item(s). The following options are available:
- Yes — Select this to include only stock controlled items in the MRP calculation.
- No — Select this to exclude stock controlled items in the MRP calculation.
- All — Select this to generate the MRP calculation for both stock and order controlled items.
Note: This is available only if you have selected the Requirements check box in the Additional criteria section. Otherwise, this will be automatically set to Yes and cannot be edited.
Sales
Select an option to run the MRP engine for sales items. The following options are available:
- Yes — Select this to include only sales items in the MRP calculation.
- No — Select this to exclude sales items in the MRP calculation.
- All — Select this to include both sales and non-sales items in the MRP calculation.
Warehouses section
Include
Click Select to select one warehouse or more to run the MRP engine for items that are linked to the warehouse(s).
Exclude
Click Select to select one warehouse or more to run the MRP engine for items that are not linked to the warehouse(s).
Requirements section
Note: This section is available only if you have selected the Requirements check box in the Additional criteria section.
Sales orders / Internal use / Purchase orders / Quotations / Production orders
Select the status of the transactions to be included in the MRP calculations for sales orders, quotations, internal use, production orders, and purchase orders. You can select Authorised, Not authorised, All, or None so that the MRP advice only applies to transactions of the corresponding statuses.
Master schedules section
Note: This section is available only if you have selected the Requirements check box in the Additional criteria section.
Schedule
Click Select to select a master production schedule and/or master purchase schedule from the same budget scenario or multiple budget scenarios. Press and hold the CTRL key, and then click the required budget scenario(s). Alternatively, hold the SHIFT key and click to select all the budget scenarios between the two selected ones.
Additional criteria section
Make/Buy
Select the required option to run the MRP engine for items to be produced or purchased. This function applies only to items that can be purchased or manufactured. If Make is selected, the production advice is generated for the finished goods or subassembly items. However, if Buy is selected, the purchase advice is generated for the purchased items.
Capacity
Select a capacity type to generate the production advice for machine and labor hour requirements with the selected capacity type. The following options are available:
- Plan — Select this to generate the planning advice for machine and labor hour requirements.
- Buy — Select this to generate the purchase advice for machine and labor hour requirements.
Note: This field is enabled only if you have selected the Requirements check box as well as the Include: Labour hours or Include Machine hours in the Additional criteria section.
Total on main warehouse
Select this check box to calculate the difference between total requirements and total available stock across warehouses. The advice to obtain additional stock will be based on this difference and will originate from the main warehouse of the item. This will then be distributed to the other warehouses that require the item.
Allow planning prior to today
Select this check box to allow the advice date to fall on a date that is before today's date.
Formulas for production order:
The following formulas will be used for the calculation if this check box is not selected and the production start date falls on a date that is before today's date.
- Production start date = Today's date
- Production end date = Today's date + BOM lead time - 1
Formulas for purchase order:
The following formulas will be used for the calculation if this check box is not selected and the purchase order date falls on a date that is before today's date.
- Purchase order date = Today's date
- Purchase order delivery date = Today's date + Supplier lead time
Requirements
Select this check box to generate the capacity (labor and machine) planning advice or purchase advice if there are requirements for the items.
Note: If you have selected the Requirements and Purchase order level check boxes, the purchase and production advice will include all the items with stock below the minimum stock level even though there are no requirements. The purchase and production advice will include the minimum purchase order level, purchase and sales order requirements, and Return to Vendor (RTV) and Return to Merchant Authorization (RMA) into the MRP calculation. However, if the Requirements check box is selected and there is no requirement for the item, the item shortage will be calculated for the advice. If the Requirements check box is selected and Purchase order level check box is not selected, or the Requirements check box is not selected and the Purchase order level check box is selected, the purchase advice will include the minimum purchase order level, and purchase order and sales order requirements into the calculation of the purchase advice. The purchase and production advice will not include items with stock below the minimum stock level.
Purchase order level
Select this check box to generate the purchase advice based on the order requirements and the purchase order level. The purchase order level is defined at the item maintenance (go to Manufacturing ? Setup ? Items, select the relevant item, and then click Open) under the Inventory tab (in the Warehouses section, select the relevant warehouse and click Edit, in the Items per warehouse screen at Minimum PO level). For more information on the inventory settings per warehouse for a specific item, see Maintaining items for a specific warehouse.
Use free receipt within lead time
Select this check box to include an upcoming free receipt to fulfill requirements that cannot be ordered on time due to lead time constraints. The free receipt must be:
- within the lead time of the main supplier (for purchased items),
- within the lead time of the required Bill of Materials version (for produced items and if requirement is from a sales order), or
- within the lead time of the main Bill of Materials version (for produced items and if requirement is not from a sales order).
Note: For produced items, the lead time calculation will take into account whether Working day or Calendar is selected at the Fulfilment date basis field in Order settings at System ? General ? Settings.
Use free PO receipt within X days from today
Select this to check box to include an upcoming free receipt that is within the number of days defined, which is different from the lead time of the main supplier. A range of 1 – 999 days in the future can be defined in the box. This check box does not affect a produced item.
Include: Labour hours
Select this check box to generate the resource planning or purchase advice for the labor hour requirements.
Include: Machine hours
Select this check box to generate the machine planning or purchase advice for the machine hour requirements.
Include: Production safety day
Select this check box to include the production safety day in the calculation of the production start and end dates. The following formulas will be used for the calculations if this check box is selected:
- Production start date = Requirement date - 1 day - BOM lead time + 1
- Production end date = Requirement date - 1 day
Include: Internal delivery days
Select this check box to include the warehouse lead time in the calculations of the production start and end dates, as well as the purchase order date and delivery date. The following formulas will be used for the calculations if this check box is selected:
Formulas for production order:
The following formulas will be used for the calculation if this check box is selected.
- Production start date = Requirement date - Warehouse lead time - BOM lead time + 1
- Production end date = Requirement date - Warehouse lead time
Formulas for purchase order:
The following formulas will be used for the calculation if this check box is selected.
- Purchase order date = Requirement date - Warehouse lead time - Supplier lead time
- Purchase order delivery date = Requirement date - Warehouse lead time
Buttons
Process
Click this to start the MRP calculation. After clicking this, the MRP engine screen will be displayed to show the progress of the MRP calculation. Once the MRP calculation is completed, the results can be viewed at Manufacturing ? Reports ? Pegging.
Delete
Click this to delete the current MRP scenario (MRP scenario code displayed at Code) and the respective MRP engine advices. After clicking this, a message will be displayed. Click Yes to proceed with the deletion, or No to cancel the deletion.
Save
Click this to save the MRP scenario settings.
New
Click this to create an MRP scenario.
Close
Click this to exit.
Related documents
Main Category: |
Attachments & notes |
Document Type: |
Online help main |
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All - 0 |
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Document ID: |
12.299.627 |
Assortment: |
Exact Globe+
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Date: |
26-09-2022 |
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