Material Requirement Planning
One run of material requirement planning for one master plan: what every level of the bills of material needs, what is in stock or on order, and what must be ordered. Saving it can raise purchase requisitions and manufacturing orders.
What it is for
Pick a Plan that has no run yet and a Transaction Date, choose the view (detail or summary), tick what the run should do, then press Create. The run works out the requirement and fills the lines; Plan, Transaction Date and the three ticks are then fixed.
How the requirement is worked out.
- Each plan line is exploded through the bill of material valid on the Transaction Date, level by level. A component that is itself made needs its own valid BOM, or the run stops.
- With Validate Available Stock, each component is netted: free stock in the warehouses of the plan's site marked Required in MRP, plus quantity still open on purchase orders, is taken off the requirement. When a made component is fully covered, its own components drop out. Items allowed to go negative are not netted.
- The summary per component gets an Order Date (the plan required date minus the item's Safety Lead Time) and an Ordered Quantity, raised to the item's Minimum Order Quantity and rounded up to its Order Multiple.
On Save, for a new run:
- Create Purchase Requisition: one requisition per order date, required date, purchase organization and purchase group, with the bought components' ordered quantities, saved as draft with the Purchase Reason and responsibles you give.
- Create Manufacturing Order: one Planned manufacturing order per made component, BOM and variant, dated on the Transaction Date, with the item's manufacturing unit, pool and category, the BOM's routing (or the item's first valid routing) and batch yield.
Either tick needs Validate Available Stock.
Every field in plain words
Header
| Field | What it means | What to put |
|---|---|---|
| Transaction | The run number. | Given on Create. Required |
| Transaction Date | The date bills of material must be valid on. | A date; fixed after Create. Required |
| Plan | The master plan. | A plan without a run. Required |
| View On | Detail or summary view. | DT or SM |
| Validate Available Stock | Net against stock and open purchase orders. | Tick for a real run |
| Create Purchase Requisition | Raise requisitions on Save. | Needs Validate Available Stock |
| Create Manufacturing Order | Raise manufacturing orders on Save. | Needs Validate Available Stock |
| Purchase Reason | Reason on the requisitions. | Pick one |
| Responsibility Central | Responsibility centre on the requisitions. | Pick one |
| Responsible | Responsible on the requisitions. | Pick one |
Plan
The plan lines.
| Field | What it means | What to put |
|---|---|---|
| Item No | Item. | Filled in by the system |
| Item Variant | Variant. | Filled in by the system |
| Name | Name. | Filled in by the system |
| Unit | Unit. | Filled in by the system |
| Plan Required Date | Required date. | Filled in by the system |
| Plan Quantity | Quantity. | Filled in by the system |
| Line Text | A note on the line. | Any text. Filled in by the system |
Requirement detail
Every level of the explosion (detail view).
| Field | What it means | What to put |
|---|---|---|
| Plan Required Date | The date the plan needs it. | Filled in by the system |
| Product | The parent item. | Filled in by the system |
| Sequence | Its place in the tree. | Filled in by the system |
| Component | The component. | Filled in by the system |
| Name | Its name. | Filled in |
| BOM | The BOM used. | Filled in by the system |
| Replenishment | Bought or made. | Filled in by the system |
| Required Quantity | Required. | Filled in by the system |
| Unit | The unit. | Pick a unit. Filled in by the system |
| Line Text | A note on the line. | Any text. Filled in by the system |
Summary
One line per component and date.
| Field | What it means | What to put |
|---|---|---|
| Plan Required Date | The date the plan needs it. | Filled in by the system |
| Component | The component. | Filled in by the system |
| Name | Its name. | Filled in |
| BOM | The bill of material used. | Filled in by the system |
| Replenishment | Bought or made. | Filled in by the system |
| Required Quantity | Quantity required. | Filled in by the system |
| Unit | The unit. | Pick a unit. Filled in by the system |
| Physical Available | Free stock. | Filled in by the system |
| Open PO Quantity | Open on purchase orders. | Filled in by the system |
| Ordered Quantity | To order. | Filled in by the system |
| Required Date | Required date. | Filled in by the system |
| Line Text | A note on the line. | Any text. Filled in by the system |
Order Detail
What is to be ordered.
| Field | What it means | What to put |
|---|---|---|
| Order Date | Order date. | Filled in by the system |
| Item No | The item. | Pick an item. Filled in by the system |
| Item Variant | Its variant. | For a variant item. Filled in by the system |
| Name | Its name. | Filled in |
| Replenishment | Bought or made. | Filled in by the system |
| Unit | The unit. | Pick a unit. Filled in by the system |
| Order Quantity | Quantity. | Filled in by the system |
| Site | Site. | Filled in by the system |
| Warehouse | Warehouse. | Filled in by the system |
How to configure it
Mark the warehouses the run may count with Required in MRP on the warehouse (inventory). The item's Safety Lead Time, Minimum Order Quantity and Order Multiple shape the result; its Maximum Order Quantity is not applied.
Scenarios
- A furniture maker plans 200 tables and needs to know how much timber to buy. Run on the plan with Validate Available Stock and Create Purchase Requisition.
- Sub-assemblies are made in-house. Tick Create Manufacturing Order too; the made sub-assemblies get Planned orders.
What it is connected to
- Master Planning - the plan exploded
- Bill Of Material - the explosion
- Manufacturing Order - raised on Save
- Purchase Requisition - requisitions raised on Save; see Procure to pay
- Warehouse - warehouses Required in MRP
- Plan to produce - the whole chain
If something looks wrong
- "If you want to create Purchase Requisition you have to run with Validate Available Stock" Tick Validate Available Stock.
- "There is no Production Plan found" The plan has no lines.
- "There is no BOM found in Transaction Date ..." No BOM of the plan items is valid on that date.
- "There is no BOM of ... found in Transaction Date ..." A made component has no valid BOM.
- "Warehouses are not marked as Required in MRP" Mark the warehouses on the site as Required in MRP.
- My plan is not offered. It already has a run.