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Evo-ERP and DBA Classic >> Manufacturing >> Conversions in MRP
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Message started by bigjoe on 03/05/07 at 05:57:53

Title: Conversions in MRP
Post by bigjoe on 03/05/07 at 05:57:53

I am having problems with conversion factors working with MRP. We have a commodity that we stock in Ft. we price in Ft. but we purchase it by the box. The minimum buy quantity is 2 boxes of 250 ft. in each box. So we have a conversion factor in of 250. We have a reorder level of 500 and a reorder amt. of 2. What we are trying to accomplish is to have it buy 500 ft. (or 2 boxes) when we go below 500 ft. on hand. When we make a P.O we put 2 in and it comes out 500 ft. on the P.O and when we receive it, it receives it as 500 ft.

When I run MRP, whenever I get below the 500 ft. reorder level for example if a requirement left me at 496 FT. it tells me to buy 4ft. Shouldn't it tell me to buy 500 ft.?

Title: Re: Conversions in MRP
Post by Lynn_Pantic on 03/05/07 at 07:55:01

Reorder Amount should also be in stock units of measure, not purchase UM

Title: Re: Conversions in MRP
Post by bigjoe on 03/05/07 at 07:59:22

I see that now, is there any way that the order action report would tell the purchaser to buy 17 lengths instead of 1326". My fear is that she will miss it and purchase 1326 lengths!!!!

Title: Re: Conversions in MRP
Post by kevind on 03/05/07 at 09:02:49

:-?
Reorder AMOUNT has always been Purchase Units (box, roll, etc).
If conv factor is 100, then placing 1 unit on PO and then receiving 1 unit results in qty 100 added to on hand.

Reorder LEVEL has always been Stocking Units (usually EA).
When the on hand value drops BELOW this, a purchase request is generated.

We use the Re-order report to create PO's. The rules Outlined above hold true for the re-order report.
MRP and the Re-order report should follow the same rules.

We have many surface mount components the we order on reels of 100, 500, 1000, etc.
We have Reorder LEVEL at stocking units, and Reorder AMOUNT in purchase units.
This works perfectly using the Re-Order Report.

If this is wrong, or if MRP works differently, please correct me. [smiley=undecided.gif]

Title: Re: Conversions in MRP
Post by bigjoe on 03/05/07 at 10:55:39

Yes we always used the re-order report to, and the same rules worked fine. But in the example I gave above we stock in inches, and purchase in 78 inch lengths, we have a reorder qty of 17 lengths, with a reorder level of 624 inches. MRP is looking at it and every time we get to 623" it is saying to buy 17 and that takes us to 640". So it tells us to buy, and buy, and buy!!!

Title: Re: Conversions in MRP
Post by kevind on 03/05/07 at 11:45:34

That seem right to me.
You have Re-order qty set to 17 lengths. When stock dips BELOW your Re-order level (624 inches),
you would place an order for 17 lengths. When you receive these 17, it will multiply 17 * the conversion factor (78)
and inventory the whole shoot'n match in inches.

I don't see the problem. :-?