Before running the MRP procedure, the low level codes have to be updated. If a bill of material has been updated since the last low level code update, this procedure has to be started again (Data menu).
The MRP procedure is launched by the Material Requirements Planning function (Planning menu).
The Calendar button permits choosing the Calculation End Date.
The Options button displays a window in such a way that the convenient planning options can be selected.
Once launched, the Material Requirements Planning function starts by deleting all the planned requirements existing in the requirements file.
For every item, it determines the planned requirements and replenishments as they are recorded in the Projected transactions window (which details the item master schedule). It takes into account exclusively inventory quantities with the AVAIL status, in the warehouses that are not marked “Not available for MRP”. From a global point of view, this function deals with the items by increasing level code.
Every time an order is planned, the Material Requirements Planning function calculates:
•the release date by taking into account the lead-time of the item, possibly corrected with the link offset,
•the quantity to release, taking into account the reorder policy and the scrap ratio,
•the requirements for the components, taking into account the BOMs valid at the projected release date.
This procedure is complex and the calculation time is long.
The projected transactions on the item window displays the orders planned by the last MRP calculation under the codes >P for the Planned purchase requisitions and >W for the Planned Work Orders.
Requirements are generated only for the components managed by requirement or by project. There is no requirement suggested for the N type items (not stored) or for the items whose reorder policy is MM (Manual Management), and I (Inventory Management).