Inventory Planning with MRP: Process Activity

The following activity will walk you through the process of running inventory planning.

Story

Suppose that GoodFood One Restaurant ordered five citrus juicers from SweetLife Fruits & Jams. The company does not have the juicers in stock, so the juicers must be assembled to satisfy the customer's order. The company also does not have the components required for the juicer assembly in stock, so the components must be ordered from the Jalooza Inc. vendor. The default lead time of the vendor is seven days.

Acting as the sales manager, you need to create the sales order with the juicers and then create a production order to request the production of the juicers. Acting as the planning manager, you need to run inventory planning, analyze the results, and take the required actions to cause the juicers to be produced and shipped to the customer by the requested date.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

• On the Customers (AR303000) form, the GOODFOOD customer has been created.
• On the Vendors (AP303000) form, the JALOOZA vendor has been configured.
• On the Stock Items (IN202500) form, the CFJCITRUS, JCREAMER, JUICECUP1L, MRBASEHIGH, STRBASKET, and SPLGUARD stock items have been predefined.

Process Overview

System Preparation

Do the following:

1. As prerequisites to the current activity, perform the following activities in the listed order:
   1. Bills of Material: Implementation Activity so that the needed bill of material has been created in a company with the U100 dataset preloaded.
   2. Production Order Types: To Create a Planning Production Order Type so that a production order type for planning orders has been created in this company.
2. Launch the MYOB Acumatica website, and sign in to a company with the U100 dataset preloaded. You should sign in as the sales and planning manager by using the peters username and the 123 password.
3. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that the business date in your system is set to today’s date. For simplicity, in this activity, you will create and process all documents in the system on this business date.

Step 1: Creating a Sales Order

To create a sales order for the GoodFood One Restaurant customer with five citrus juicers, do the following:

1. On the Sales Orders (SO301000) form, add a new record.
2. In the Summary area, specify the following settings:
   • Customer: GOODFOOD
   • Requested On: Today's date plus 1 day
   • Description: Sale of 5 citrus juicers to GoodFood One Restaurant
3. On the Details tab, add a new row and specify the following settings in the row:
   • Inventory ID: CFJCITRUS
   • Quantity: 5
   • Unit Price: 2000
4. On the form toolbar, click Save.

Step 2: Creating a Production Order

To create a production order from the sales order, do the following:

1. While you are still viewing the sales order on the Sales Orders (SO301000) form, on the More menu (under Manufacturing), click Create Production Orders.
   Tip:

   You open the More menu by clicking the More button (…) on the form toolbar.
2. In the Production Orders dialog box, which opens, select the unlabeled check box in the only row, and click Create. The system creates the production order and closes the dialog box.
3. Go to the Details tab, and notice that the system has added the reference number of the production order in the Production Nbr. column for the only line.
4. In the column, click the link to open the production order on the Production Order Maintenance (AM201500) form.
5. Go to the General tab, and notice that today's date plus 1 day is specified in the End Date box.

Step 3: Running Inventory Planning and Viewing Exception Messages

To run inventory planning and view exception messages, do the following:

1. Open the Regenerate Inventory Planning (AM505000) form.
2. On the form toolbar, click Process. Wait till the log records appear in the table.
3. Open the Inventory Planning Exceptions (AM403000) form.
4. Notice that no exception messages are displayed in the table.

Step 4: Creating a Purchase Order

To create a purchase order for the components, do the following:

1. Open the Inventory Planning Display (AM400000) form.
2. Make sure that the table contains five rows of the Production Material type. These rows correspond to the components required for the juicer assembly. In the Source column, notice that Purchase is specified, which is the replenishment source for the items.
3. Select the unlabeled check box in each of the five rows.
4. On the form toolbar, click Purchase to create a purchase order for the components.
5. In the Create Purchase Order dialog box, which opens, make sure that in the Vendor box, the JALOOZA vendor is selected, and in the table, all five components are listed.
6. Click Create. The system creates the purchase order and shows its type and reference number in the Purchase Order Created dialog box, which opens.
7. Click OK to close the dialog box.
8. Open the created purchase order on the Purchase Orders (PO301000) form.
9. Notice that the Promised On box contains the date that is the today's date plus 7 days, which is the default lead time of the JALOOZA vendor. This purchase order does not satisfy the demand of the sales order because the components will be delivered later than the customer expected to receive the juicers.

Step 5: Rerunning Inventory Planning and Viewing Exception Messages

You will view how the list of inventory planning exception messages has changed because of the creation of the purchase order. Do the following:

1. Open the Regenerate Inventory Planning (AM505000) form.
2. On the form toolbar, click Process and wait till the system completes processing.
3. Open the Inventory Planning Exceptions (AM403000) form.
4. Notice that the Expedite messages for the component lines from the purchase order have appeared in the list. This means that to satisfy the demand, you need to negotiate an earlier delivery date with the vendor or a later shipping date with the customer (or both).

Step 6: Changing the Dates in the Documents

Suppose that you have negotiated with the vendor an earlier delivery date of 2 days after the today's date for the juicer components. Do the following to change the date in the purchase order:

1. On the Purchase Orders (PO301000) form, open the purchase order that you created earlier in this activity.
2. In the Promised On box of the Summary area, change the value to the today's date plus 2 days.
3. In the dialog box with the warning message that appears, click Yes.
4. On the form toolbar, click Save.

Step 7: Rerunning Inventory Planning and Viewing Exceptions

You will rerun inventory planning and make sure that all exception messages have been processed. Do the following:

1. Open the Regenerate Inventory Planning (AM505000) form.
2. On the form toolbar, click Process and wait till the system completes processing.
3. Open the Inventory Planning Exceptions (AM403000) form.
4. Make sure that no exception messages are displayed in the list.

You have successfully processed all the exception messages.