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Question : Subject: MRP, timing of purchase requests

We have a problem with mrp.

I get lots of purchase requests on a daily basis & after a lot of effort, they now mostly reflect appropriate quantities of materials to buy. The problem is timing. A typical scenario is the day after I've placed an order on a vendor, there will be a request to purchase another product from the same vendor. Typically we will have sold justone more unit, bringing stock levels down to the reorder point, hence the request.

Given that usually that the additional sale was within the forecast level for the month, what do i need to do to get mrp to produce requests for all the vendors materials that will need to be ordered before the end of the month? Not only is this starting to drive me up the wall, my suppliers are starting to express frustration as well
 

Answer : Subject: MRP, timing of purchase requests

Hi,

I feel u can change the planning from Reorder point based to regular planning.  Also, u can set up the Delivery schedules with Firming zone and TRade off zones.So, When the higher level assembly is planned based on some forecast, it will explode the BOM and dependent requirements are generated for the entire planning horizon.Based on the settings, delivery schedules within Firming period gets firmed and u can transmit it to ur Suppliers and also transmit the future/forecast schedules also for ur Vendor's knowledge and info.He will be prepared for the next set of requirements.Even if material is stock, according to forecast, some delivery schedules in TRade off zone (not firmed) will be generated and ur supplier can be prepared.
Alos, try to match the frequency of MRP run with ur requirement of passing the info. to ur suppliers.

Hope this change in the business process will help.
 

Answer : Subject: MRP, timing of purchase requests

I agree with mvm. If you are going to the trouble of putting together a sales forecast, why are you using reorder point planning? Let the forecast trickle down through all levels of the BOM and use it to drive procurement (either internal or external) of your lower level components. I assume that the forecast is being entered into SAP, probably in S&OP. If not, you have a bigger issue on your hands.

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