MRP:Calculation

[cooldude1981]

Hello everyone,
I'm in the process of implementing MRP for my company in Macola ES for all purchase items and this is my first time I'm implementing so you can guess I'm fairly new at it. I had couple of questions so far and would appreciate if anyone could help me out.
1)Does anyone have an idea what formula does MRP use as a recommendation when we use order policy code as "Reorder Point(R)".
2)Also is it ever possible for Reorder point to be lower than safety stock ( I know thats not the norm).
Thanks
Hamdan

 

[abaldwin]

I think that implementing MRP is a good project to have your VAR involved with.

Andy Baldwin

"Testing is the most overlooked programming language on the books!"

Ask a great question, get a great answer. Ask a vague question, get a vague answer.
Find out how to get great answers FAQ219-2884.

 

[dgillz]

A reorder point item is planned by mrp when the qty on hand is less than the reorder point. So if you have an item with 12 on hand and the reorder level is 100, you will get a CPO for 88 pieces. (Assuming you are not using order multiples, order up to, etc).

If you have an reorder item on order, MRP will see the replenishment and reduce or eliminate the CP as needed.

Andy is right, implementing MRP is not an easy task, you should talk to your VAR.

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

http://www.gainfocus.biz

"What version of URGENT!!! are you using?

 

[cooldude1981]

How will MRP react if there is a reorder point and safety stock put in it. For example we always want the SS to be 225 units but when we order we want to take into account the safety stock plus additional demand experienced during lead time (here it is 169 units demand expected during lead time) so when we order we need to make sure we will have 394 units on hand to satisfy all demands, but we will place an order only when total on hand inventory goes below 225 (the safety stock here).
So what do you think my re order point should be here.
How can I make MRP place an order to make sure we have atleast 394 units, but not to place an order until the total inventory goes below 225.
My personal guess is that the safety stock currently used here is acting more like re order point rather than safety stock, but its working great for our company now.
Hope haven;t lost you guys here
Any inputs?

 

[dgillz]

What is the status of the checkbox is MRP setup entitled "Subtract Safety Stock from Qty Available"?

Go to MRP setup, select this field and click on help->about this field. The help file explains it very well. Then remember to reset it to the desired value before you exit.

Software Sales, Training, Implementation and Support for Macola, eSynergy, and Crystal Reports

http://www.gainfocus.biz

"What version of URGENT!!! are you using?