MRP Setup

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These forms contain data supporting the MRP process:

Inventory Supplier Detail Maintenance

(a) Supplier

The supplier assigned to a planned purchase order is determined from the Inventory Supplier Detail Maintenance form, using this hierarchy:

• Only the preferred supplier for the planned order location (if locations are in use).
• First supplier found for the planned order location (if locations are in use).
• Preferred supplier with an empty location.
• First supplier found with an empty location.
• If no supplier found, an empty supplier.

The supplier must also be active.

You cannot create a purchase order cannot using the MRP review process if either the location (if locations are in use) or the supplier is blank.

(b) Lead Times

Lead times for purchased items are created using this hierarchy.

Where supplier details contain lead time information:

• Use the lead time of the supplier/location combination (if locations are in use);
• Use the lead time of the supplier/blank location.

Where supplier details do not contain lead time information, the lead time comes from the Inventory Reorder Detail Maintenance form, using this hierarchy:

• Use the lead time of the location (if location sare in use);
• Use the lead time of an empty location;
• Use zero as the lead time if no lead time is found,

Inventory Reorder Detail Maintenance

The Economical Order and Minimum Quantities specified for an item in the Inventory Reorder Detail Maintenance form are considered when calculating a net requirement for purchased items when the MRP process runs. The lead time hours and batch size specified for an item in the Bill of Materials Maintenance form are the factors used by the MRP process when calculating net requirements for manufactured items.

Bill of Materials Maintenance

The lead time for a manufactured item is calculated as: ((total non fixed hrs/batch size) x planned order quantity)) + fixed hrs. These factors are specified for an item in the Bill of Materials Maintenance form and Route Plan.

Example

Planned factory order = 100

Batch size = 50

Route Plan = 5 hours for operation 1 (not fixed) and 7 hours for operation 2 (fixed)

Lead time = ((5 ÷ 50) x 100) + 7 = 17 hours

Standard hours per day = 7.5, lead time in days = 2 (17hrs ÷ 7.5hrs = 2 (rounded)).

If Saturday and Sunday non-working days:

• Due date of planned order is Thursday, 1 November 2018.
• Release date is two days before the due date: Tuesday, 30 October 2018.

If Monday is subsequently made a non-working day, and requirements are recalculated, the release date is Friday, 26 October 2018.

Inventory Item Maintenance

Inventory items are included or excluded in MRP calculations based on their status, and whether they are purchased or manufactured.

An item with an Inactive status is always excluded from the MRP generation process.

Purchased Only Items

Planned purchase orders will be created using the MRP generation process for purchased items they do not have a bill of material) that have a status of Active or Active (Do not allow further sales). Purchased items will be excluded from the MRP generation process if they have a status of Active (Do not allow further purchases).

Manufactured Items

Planned orders will be created using the MRP generation process for manufactured items they have a bill of material assigned) that have a status of Active or Active (Do not allow further sales).

The MRP generation process creates planned purchase orders for manufactured items if the MRP Module Control option Create planned orders for purchasing first is selected, otherwise it creates planned factory orders.

Exception

If a manufactured item has a status of Do not allow purchases and the MRP Module Control option Create planned orders for purchasing first is selected, the process creates planned factory orders.

This table shows the planned order type created for the various combinations.

Inventory Item Maintenance Status	MF Module Control Create planned orders for purchasing first	Has a Bill of Material?	Planned Order Type
Is Active	False	No	Purchase
	True	No	Purchase
	False	Yes	Factory
	True	Yes	Purchase
Is Active (Do Not Allow Sales)	False	No	Purchase
	True	No	Purchase
	False	Yes	Factory
	True	Yes	Purchase
Is Active (Do Not Allow Purchases)	False	No	Item Excluded
	True	No	Item Excluded
	False	Yes	Factory
	True	Yes	Factory

Item Locations

The locations assigned to planned factory and purchase orders are determined based on this hierarchy:

• Default FO/PO location from Manufacturing Module Control; else
• Use first primary location found for item; else
• Use first stocking location found for item; else
• Use first primary location found for any item; else
• Use empty location.

• Module Control
• Manufacturing User Preferences
• Module Control - MRP

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