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DenSter wrote: »
MRP looks at demand and supply. If you ignore sales orders (demand) and production/purchase orders (supply), your outcome is not accurate.
Let's say at your widget factory you run MRP based on inventory/forecast only. You have nothing in inventory with a forecast of 100, so it calculates that you need 100 widgets so you create a production order for it. So far so good.
Then you run MRP again. If it ignores the production order that you just created, it will tell you again to create a production order for 100 widgets. You are now producing 200 widgets, covering twice the current demand (which is only in your forecast because you're not looking at actual sales orders).
Then a customer calls and places an order for 400 widgets. You run MRP again. I guess it's a good thing you are ignoring inventory levels because it will again suggest another prod order for 100 widgets (you now have three of them), but by the time your customer expects the shipment of widgets, you still won't have enough to send to them because you ignored the sales order.
Sales orders and production orders are essential parts of MRP. Without them, it's not MRP.