MRP Module

In version 2.2 a new module was implemented, thanks to it you can check a demand for individual materials for the specific day, that result from the orders from recipients, inventory balances and planned deliveries.

Material Requirements Planning means planning of demand for materials. It is used for managing the stock with the dependent demand - when the demand is totally dependent on the size of production of the concrete assortment.

On the basis of the assessment of demand, existing stock, orders from recipients, orders to suppliers, production commissions and changing additional parameters, such as a time of delivery completion, minimal quantity of of order. The module simplifies undertaking of decisions about the purchase of materials.

From the module MRP you can gain the following information for each material (e.g for a concrete day):

• Gross demand – a whole demand for a specific material resulting from received orders to recipients and production commissions.

• Delivery planning – it presents the information about planned dates of delivery completions of individual materials, resulting from confirmed orders to suppliers.

• Stock balance – it informs you about the expected przewidywanym na koniec dnia (okresu) stock balance that results from demand, the stock zapa z wcześniejszego okresu, zaplanowanych dostaw, zrealizowanej produkcji.

• Demand (net demand) is a gross demand reduced by the stock balance - it informs you about the lackiong quantity of the material that should be ordered. In determining the demand, trade parameters related to the ingredient of orders for a specific assortment are taken into consideration, such as the minimal size of order or time of delivery completion (if the assortment is needed for a specific day, and a time of the delivery completion is 2 days, then the demand will appear two days earlier. A time of delivery completion should be defined on the assortment's card, individually for every supplier).

• Receipt planning – it informs about the date of the receipt realization resulting from the requested demand.

For the accurate display of the module MRP functioning, below an example is presented.

The produced article is a pen with the following formula:

• a feed - 1 item (time of the delivery completion = 1 day)
• a barrel - 1 item (minimal size of order = 100 items, time of delivery completion = 2 days)

Analyzed example includes the period of seven days, starting from the 1st of April. On the 1st of April in the warehouse there are 2 barrels. From the second of April, a delivery of 25 items of barrels is planned.

3 orders for pens were received:

• 50 items with a date of realization for the 5th of April,
• 40 items with a date of realization for the 6th of April,
• 30 items with a date of realization for the 7th of April.

Demand for a barrel

Orders for pens generate the Gross demand for materials. First order as got a date of realization for the 4th April, so this day a Gross demand for a barrel is displayed. On the 1st of April, in the warehouse there are 2 barrels (Stock balance). Owing to the fact that during the first three days the Gross demand does not occur, they will be not used until the moment of using them in the production that will begin on the 4th of April.

Because the stock is insufficient for the order completion, on the 2nd of April a Demand for 100 items of barrels appear. It is because the time of the completion of the material's delivery lasts two days, and a minimal size of order amounts to 100 items. If the order is realized (Planned receipt), then on the 4th of April 102 items of barrels will be available, from which 50 will be used for realization of the first order. As a result, the stock balance, that can be used for the realization of the next order, will amount to 52 items.

This supply will be sufficient for the realization of the other 40 items of pens that will be produced the on the 5th of April. After completion of production, 12 items of barrel will remain in the warehouse. However, this supply will not be enough for realization of the last order. Therefore, other Demand is displayed. Again, it appears two days in advance and again is relates to 100 items. After the realization, 112 will be available of which 30 will be used and the remained 82 items will be in stocks.

++++ See a screenshot of the demand for barrels| ++++

Demand for feed

For the 2nd of April, delivery for 25 items of feeds is planned. The items will not be used until the 4th of April, when the production starts. A whole stock will be used this day. It will be enough for the realization of the first half of the order. It is necessary to order another 25 items. To make a delivery for the 4th of April possible, the order should be placed a day earlier. With regard to the lack of Planned deliveries and the stock balances that equal zero, other orders for the pen generate a Demand that is equal with a Gross demand.

++++ See a screenshot of the demand for the feed | ++++

In order to use MRP module, follow these steps:

1. Click on the button MRP from the top menu [look at Screen 4],
2. Click on the button Start [look at Screen 4].
3. Define parameters that should be taken into account when calculating the demand [look at Screen 5]:
   • Type of the final date:
     • planned date of the beginning of the production commission
     • planned date of the finshing the production commission
     • date of the order realization from a recipient
   • take into account a stock balance *
   • take into account minimal stock balances
   • take into account a minimal size of delivery
   • take into account a fixed size of delivery
   • take into account a time of delivery completion
   • take into account planned deliveries
   • take into account a planned production of half-finished products
   • Status of the production commission:
     • Unplanned
     • Planned
     • Producton initiated
   • Status of the order from a recipient:
     • Draft
     • Confirmed
   • Define warehouses, which balances and demands will be taken into account in calculations [look at Screen 6].

++++ Screen 4: Running of the MRP module | ++++

++++ Screen 5: Defining of parameters of the MRP module | ++++

++++ Screen 6: Defining of parameters of the MRP module | ++++

After defining parameters, the module will make calculations and will present them in the form of a definable report. You can expand it with additional elements. For this purpose [look at Screen 7]:

1. Click on the button „View”,
2. An item chosen from the list drag it by using the right button and drop it is an appropriate place.

++++ Screen 7: Modification of MRP report | ++++

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