Is it possible to exclude production orders and sales orders when running MRP?

MinervaM84

Hello,
Is there any way to run MRP without looking at production orders and sales orders?

DenSter

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.

FlameESD

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.

To cut the supply make never sense. But to ignore the demand can make sense for some items. Most for handle/plan Bulk Goods which are C items, where you can make a reliable forecast and a short replenishment (like standard screws, sand ...).

DenSter

Doesn't that defeat the purpose of MRP?

MinervaM84

The question was brought up and thought of asking
Our team is wanting MRP to "only" look at forecast vs inventory in order to suggest or create purchase orders. Do you know any other way to do this?
I'm not too familiar with MRP, we haven't use it since we started with Nav.

FlameESD

By Default it is not possible. But you can add or change some Code to make it possible. In BC14 the Demand is handled by CU99000854. In this Codeunit is a function called DemandToInvtProfile. You can catch the Event OnBeforeDemandToInvProfile in this codeunit and set the IsHandeled Parameter to true (maybe depend on Item Setting). That would solve your request. Some use this to handle/plan Bulk Goods.

Sorry, I just saw your request is for GP, my suggestions is for BC.

MinervaM84

Thank you! I appreciate your help!

kriki

[Topic moved from 'Dynamics GP' forum to 'NAV Three Tier' forum]

RockWithNAV

I think you shouldn't customise this on any level instead you should train the users how to use it.

DenSter

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.

FlameESD

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.

To cut the supply make never sense. But to ignore the demand can make sense for some items. Most for handle/plan Bulk Goods which are C items, where you can make a reliable forecast and a short replenishment (like standard screws, sand ...).

MinervaM84

Thank you! This is very good to know. I will provide this information to the team. Thanks again!