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Evo-ERP and DBA Classic >> Manufacturing >> MRP Reorder level
http://www.istechforum.com/YaBB.pl?num=1177441950

Message started by bigjoe on 04/24/07 at 12:12:30

Title: MRP Reorder level
Post by bigjoe on 04/24/07 at 12:12:30

I have a question, if I have a part that has a reorder level of 10 and a reorder quantity of 10, and we don't use it that often so there is not much of a forcast. It also has a 30 day lead time. If I get an order for 2 and that puts me below the reorder level, MRP says I should have bought the material 30 days ago to be due today. Should it not tell me to buy today to be here in 30 days, if my reorder amount is set to cover my lead time. It is always telling me I needed to have ordered something weeks ago rather than telling me to order it today. Help!

Title: Re: MRP Reorder level
Post by Tim Keating on 04/24/07 at 12:41:47

The logic sounds right to me. The "need" is generated today, when you enter the sales order. So today is the "date required" and to receive it today you would have had to order it 30 days ago. If you write a purchase order today, the due date should be 30 days from today.

MRP is designed to work off future events, driven by forecasts and scheduled work orders, purchase orders, sales orders, etc... It can't make lead times shorter than what you entered.

Title: Re: MRP Reorder level
Post by Lynn_Pantic on 04/24/07 at 17:43:19

To further clarify, the "Reorder Level" as interpreted by MRP is the bare minimum Safety Stock, not the trigger point to buy more. Once it sees you hitting that Safety Stock point, it will prompt to buy far enough before you hit the safety stock level to cover the lead time.

Title: Re: MRP Reorder level
Post by bigjoe on 04/25/07 at 05:17:16

Thank you Lynn, I will get it figured out someday. It is tuff in our business we only have a 5 day order board so we cannot base our MRP off sales orders, so I am forced to make forcasts based on past history. The problem with that is our product base is so large and we have very few products that are "standard".

Title: Re: MRP Reorder level
Post by bigjoe on 04/25/07 at 12:49:34

After further review I have come up with this conclusion, please tell me if it is correct. You can only use MRP for things that can be forcasted in the future. For items that you may sell on an occasional basis or possibly seasonal, you need a reorder level that reflects the lead time that it takes to get more of that component and you should not include this part in your MRP generation. Is this correct?

Title: Re: MRP Reorder level
Post by shadowcaster on 04/27/07 at 14:28:11

Wrong
use the MRP for every item you plan on stocking, making, buying or selling

say you get an order for something you dont have in stock (reorder level 0 reorder qty 1)
MRP will tell you to buy it and when based on how long it takes to get (lead time) and the requested ship date.

say you keep 1 in stock you get an order for 1 reorder level 1 reorder qty 1
same thing will happen
MRP will tell you to buy another one so you dont run with an empty store

if an item is on a BOM that can be used even accidentally it should be MRP enabled

The only thing I might turn it off for is an item you will never make or buy again never sell again and is disabled so you cant enter a sales order or work order for it.

MRP is like a magic window. Its your vision of the inventory. Any activity on any item that is wrong will make it show up on the MRP so you will see what is going on with things before they get out of hand. as you get to know your items assemblies ect you will be able to spot problems at the start rather than the end of the process.
it wont solve every issue or catch every mistake but when the MPR says BUY or MAKE you will at least be flagged that there is activity that will be costing you time and money. you review each item (copy paste from the report via a spread sheet into IN-A) look at the item and then decide what to do

fix it
buy it
make it
or adjust it

treat every item the same. NO " Special items " a screw should be treated the same as a million dollar item.

MHO

J Dub

Title: Re: MRP Reorder level
Post by bigjoe on 05/01/07 at 09:44:32

Thank you, so even though it is telling me I should have bought these 3 weeks ago, it is still telling me they need to be bought, and I can decide whether or not to raise the reoder level or what ever else I might do. at least it is alerting me that something needs to be done.

Title: Re: MRP Reorder level
Post by shadowcaster on 05/02/07 at 07:33:52

ALSO
if the need is covered by an existing PO or workorder and its still telling you to buy or make.

you need it make buffers bigger

OR

you need to get the dates on the po or workorder fixed so they fit into the requirments of the buffers or delay parameters.

so Expidite those po's and workorders get stuff in on time
use proper dates on workorders sales orders and po's

things will smooth right out

J Dub