Essentially MRP need to take into account multiple factors into consideration while generating net requirement for any given part/product. The existing version of MRP algorithm is primarily meant to create the requirement plan (WHEN and HOW MUCH would be the required) for all parts in any standard manufacturing supply chain setup.
Parts at finished good (or any intermediate) level may or may not have the associated upstream Operation and Bill of Material (BoM) in the system. Two kinds of requirements are generated to fulfil the demand arisen out of existing Sales (Sales Orders and Sales Forecast) and Safety Stock requirement for that part. One is Product Requirement that needs to be procured (i.e there is no upstream BoM set for these parts). Second, is Internal Requirement that needs to produced internally (i.e there are BoM associated to the given part and hence at component level the requirements are generated to fulfil the derived demand coming from downstream levels (i.e, to produce the downstream material so as to fulfil finished good's demand) and Safety Stock requirement for that part. At very high level it should be based roughly on following formulation: * Required Qty (at FG level) = Max (SalesDemand,ROQ) + MinimumStock (ROP) - QOH - ∑ On Order (Approved PO,Requirements and/or Incoming Production Runs) * Required Qty (at BoM component or Intermediate level) = Max ((Sales Demand + Outgoing Production Runs),ROQ) + MinimumStock (ROP) - QOH - ∑ On Order (Approved PO and/or Incoming Production Runs) The Product requirements furnished out of MRP (or outside of MRP flow) should be first approved and then can be converted to Purchase Order to given supplier for any part. Whereas the Internal Requirements can be approved and converted to Production Run for any given part. I hope it helps in answering some of the raised concerns. Thanks & Regards, Swapnil Shah |-----Original Message----- |From: Heidi Dehaes [mailto:[email protected]] |Sent: 17 October 2014 20:19 |To: user |Subject: requirements | |Hello, | |Can someone explain to me what are the consequences of the creation of a |requirement of products after selling products for example. |(autorequirement set) |Does this already mean that automatically a purchase invoice is made for the |supplier? | |Regards, |Eric | |Olagos bvba |Heidi Dehaes |Kerkstraat 34 |2570 Duffel |Belgium |Tel. : 015/31 53 04 |GSM : 0485/22 35 80 |E-mail : <mailto:[email protected]> [email protected] | <http://www.olagos.eu> http://www.olagos.eu | <http://www.olagos.com> http://www.olagos.com | <http://www.olagos.be> http://www.olagos.be | <http://www.olagos.nl> http://www.olagos.nl
