MRP Configuration: Implementation Activity

In this implementation activity, you will learn how to specify the system settings related to material requirements planning (MRP).

Story

Suppose that you are an implementation manager who needs to prepare the system for material requirements planning.

According to the business processes of SweetLife Fruits & Jams, exception messages must be generated for supply orders dated 7 days before the requested date of a demand order and supply orders dated 5 days after this date. The demand time fence and MPS time fence should be 30 days, the same as the grace period for supply orders. You will use the Reorder Point stocking method for replenishing materials. Sales orders, production orders, and purchase orders on hold must be considered by the system during planning. Also, the system should generate lead times dynamically for planned orders.

You need to create periods (or buckets) for MRP to aggregate demand and supply data. You will have 13 weekly periods, 1 monthly period, and 1 yearly past due period.

You need to make sure that the warehouse involved in manufacturing has been configured properly for MRP.

Also, for stock items that are used as materials, you need to specify replenishment settings, such as the safety stock quantity, the reorder point, the minimum order quantity, and the maximum order quantity.

Configuration Overview

The following entities, which you will use in this activity, have been predefined in the U100 dataset:

Process Overview

In this activity, to specify settings related to MRP, you will do the following:

  1. On the MPS Type (AM203000) form, create an MPS type to be used in the MRP settings.
  2. On the MRP Preferences (AM100000) form, specify the system settings that affect the MRP process.
  3. On the MRP Buckets (AM201200) form, create the needed buckets for MRP.
  4. On the Warehouses (IN204000) form, review the settings of the WORKHOUSE warehouse related to MRP.
  5. On the Stock Items (IN202500) form, specify the settings of the JUICECUP1L stock item that will be used by the system during MRP.

System Preparation

Before you start specifying MRP settings, do the following:

  1. As prerequisites to the current activity, perform the following activities in the specified order:
    1. System Preparation for Manufacturing Implementation: Implementation Activity so that the needed settings have been specified in a company with the U100 dataset preloaded
    2. Production Order Types: To Create a Planning Production Order Type so that the order type for planning orders has been created in a company with the U100 dataset preloaded
  2. Sign in to the company in which the prerequisite activities have been performed as a system administrator by using the gibbs username and 123 password.
  3. Make sure that the Material Requirements Planning feature has been enabled on the Enable/Disable Features (CS100000) form.

Step 1: Creating an MPS Type

To create an MPS type, do the following:

  1. Open the MPS Type (AM203000) form.
  2. On the form toolbar, click Add Row.
  3. In the new row, specify the following settings:
    • Type ID: MPS
    • Description: Master production schedule
    • Numbering Sequence: AMMPS
    • Dependent: Selected
  4. On the form toolbar, click Save.

Step 2: Specifying General MRP Settings

To specify the system settings that affect MRP, do the following:

  1. Open the MRP Preferences (AM100000) form.
  2. In the Exceptions section, specify the following settings:
    • Days Before: 7
    • Days After: 3
  3. In the Forecast section, specify the following settings:
    • Demand Time Fence: 30
    • Numbering Sequence: AMFCST
  4. In the MPS section, specify the following settings:
    • Time Fence: 30
    • Default Type: MPS
  5. In the General section, specify the following settings:
    • Plan Order Type: PL
    • Grace Period: 30
    • Stocking Method: Reorder Point
    • Purchase Calendar ID: MAIN
    • Include On Hold Sales Orders: Selected
    • Include On Hold Purchase Orders: Selected
    • Include On Hold Production Orders: Selected
    • Use Fixed Manufacturing Times: Cleared
    • Include Expired Blanket Sales Orders: Cleared
  6. On the form toolbar, click Save.

Step 3: Creating the MRP Buckets

To create the needed MRP buckets, do the following:

  1. Open the MRP Buckets (AM201200) form.
  2. On the form toolbar, click Add New Record.
  3. In the Summary area, specify the following settings:
    • Bucket ID: MAIN
    • Description: Main bucket
    • Active: Selected
  4. In the Buckets table, add a bucket for a yearly past due period as follows:
    1. On the table toolbar, click Add Row.
    2. In the new row, specify the following settings:
      • Bucket: -1
      • Value: 1
      • Interval: Year
  5. Add 13 buckets for weeks as follows:
    1. On the table toolbar, click Add Row.
    2. In the new row, specify the following settings:
      • Bucket: 1
      • Value: 1
      • Interval: Week
    3. Add the other 12 rows, and in the Bucket column, type 2 in the next row, type 3 in the row after that, and continue this pattern through 13 in the last row. You enter 1 in the Value and Week in the Interval columns for each of these rows.
  6. Add a bucket for a month as follows:
    1. On the table toolbar, click Add Row.
    2. In the new row, specify the following settings:
      • Bucket: 14
      • Value: 1
      • Interval: Month
  7. On the form toolbar, click Save.

Step 4: Reviewing the MRP Settings for a Warehouse

You will review the MRP-related settings that have been predefined for the WORKHOUSE warehouse in the U100 dataset. Do the following:

  1. Open the Warehouses (IN204000) form.
  2. In the Warehouse ID box of the Summary area, select WORKHOUSE.
  3. In the MRP Settings section of the Manufacturing tab, make sure that all check boxes are selected. This means that all documents and entities will be considered by the system during the MRP process.
  4. On the Locations tab, make sure that the check boxes in the MRP column are selected for the MAIN, MGI, and MTL rows in the table. This means that these locations are involved in the MRP process.

Step 5: Specifying MRP Setting for Stock Items

You will specify the MRP-related settings for the JUICECUP1L stock item, which has been predefined in the U100 dataset. In a production environment, you would need to specify similar settings for all stock items that will be used for MRP. Do the following:

  1. On the Stock Items (IN202500) form, select the JUICECUP1L item.
  2. On the Manufacturing tab, do the following:
    1. In the General section, make sure that the MRP Item check box is selected.
    2. In the Planning Settings section, select the Override check box to the right of the Safety Stock box. The box becomes available.
    3. In the Safety Stock box, specify 3.
    4. Select the Override check box to the right of the Reorder Point box. The box becomes available.
    5. In the Reorder Point box, specify 5.
  3. On the Vendors tab, do the following in the row for the JALOOZA vendor:
    1. Make sure that in the Lead Time (Days) column, the 7 value has been specified.
    2. In the Min. Order Qty. column, specify 2.
    3. In the Max. Order Qty. column, specify 10.
  4. On the form toolbar, click Save.

You have gained experience with specifying the system settings that are related to material requirements planning.