MRP Review

Material Resource Planning (MRP) compares projected Inventory levels with projected Sales. Minimum and maximum stock levels, along with typical lead times, are evaluated to prompt you to either create or defer Purchase Orders.

MRP items list view

New for AV 2020.1.0 - There is now a list view screen for MRP items.

1. The MRP tab of a Product record

1.1. Settings

Calculate

  • BOM Level: This value indicates the hierarchy of this Product relative to other Products in your Inventory. For example, when running the Calculate MRP function from the Product Action Menu, Products with Level 0 will be run before Products with Level 1. This helps to ensure that material requirements for Products [that are components of other Products] are calculated in the appropriate order.
    • Products that are never used as a component of a Finished Good should be highest in the hierarchy -- Level 0.
    • Products used as Assembly components should be set to Level 1 or higher. A first level component (i.e. only a component of a Parent Assembly) would be Level 1. A component of a Sub-Assembly would be level 2...and so forth.
  • Period: The columns may display weeks or months. When set to weeks, the date is a Friday and represents the week ending. All values and forecasts are relative to the week/month ending as of the indicated date.
  • Recalc: Recalculates MRP Values and Action Items for the Product.
    • This function can be run for multiple Products at once by selecting the items in the Product window and choosing Calculate MRP from the Action Menu.

Last Run

  • Last Run Date/Last Run Time: Displays the date and time the MRP function was last calculated.

Lead Times

  • Std Lead Time: This refers to the number of days it typically takes to receive ordered Inventory.
  • Rush Lead Time: This indicates the absolute minimum number of days it would take to receive the Product from a Vendor under expedited circumstances. For example, the lead time on a Product is normally 5 weeks, but I can expedite a shipment to be received in 3 weeks. The Rush Lead Time is 21 days. This number indicates that, no matter what my demand or forecasted usage is, I absolutely cannot add to stock any sooner than 21 days.

Action Items

  • Expedite: A material requirement needs to be met within the Rush Lead Time and there are no open Purchase Orders for this item.
  • Order: A material requirement needs to be met within the normal Lead Time and there are no open Purchase Orders for this item.
  • Increase: A material requirement needs to be met within the normal Lead Time and there is already an open Purchase Orders for this item. More units need to be added to an existing Purchase Order.
  • Defer: There are already one or more open Purchase Orders that are not needed -- receiving those items would result in excess inventory.

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  • If you want to use the MRP calculations for your Auto Purchase Order processing, the items to order will be drawn from Expedite, Order or Increase Action Items.
  • To change the status of an MRP Action Item, double-click it. When the Status reads Pending, that means you are ready to process Auto Purchase Orders for the MRP Action Items.

Inventory

  • Warehouse: The MRP function is run on a Warehouse by Warehouse basis.
  • Qty on Hand: This is the current Real Time Qty on Hand for the chosen Warehouse.
  • Current consumption: This is the difference between the forecast quantity and the consumed quantity.
  • Minimum stock: This is the minimum required Inventory level. (This is entered on the Product ➤ Inventory tab.)

1.2. Levels

The columns represent the periods of time (i.e. weeks vs. months) you indicated in the Settings. The first two columns, however, are fixed:

  • PP1: The beginning of time through the last day of the previous Fiscal Period.
  • PP2: The current Fiscal Period start date through yesterday.

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  • Begin Avail (+): Beginning Available is the difference between Realtime Qty on Hand and Minimum Stock levels.
  • Purchase Orders (+): The quantity of units on an Open Purchase Order.
  • Work Orders (+): The quantity of units of finished goods Assemblies on open Work Order
  • Total Forecast (-): This is the quantity of units on open Forecast records (found in Inventory ➤ Forecast).
  • Open Forecast (-): This is the quantity of units on open Forecast records minus the number of units on Sales Orders.
  • Anticipated Work Orders (-): This is the quantity of units (of a component part) needed to build Assemblies on Forecast records. To calculate this accurately, the level value for the component part must be a higher number than the level value for the Assembly part.
  • Parent Assy Open Sales (-): This is the quantity of units (of a component part) needed to build Assemblies on Open Sales Orders. To calculate this accurately, the level value for the component part must be a higher number than the level value for the Assembly part.
  • Work Orders (-): The quantity of units (of a component part) needed for open Work Orders.
  • Sales Orders (-): The quantity of units on Sales Orders (Open, Committed, Picked or Packed).
  • Shipped Qty (-): This is the quantity of units that have been marked as Shipped/Invoice.
  • End Avail. (=): Ending Available is quantity left after taking all of the above into account.

AcctVantage calculates all of the preceding values to determine how many units are needed in the coming weeks or months to fill anticipated Orders. This number is displayed in the Planned Orders row. The values here generate Action Items to either create or defer Purchase Orders, taking into account the required lead time and rolling forward excess Inventory that may be too late to defer. The Auto-PO function can be used to generate POs suggested by MRP Action Items.