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Topic: The MRP Module:

Topic: The MRP Module E-learning curriculum SAP Business One 2004

Topic Objectives:

Describe the MRP module. Make the initial definitions required for working with the MRP. Use the MRP Wizard. At the conclusion of this topic, you will be able to: Topic Objectives

The MRP Module:

The MRP Module The MRP module (Materials Requirements Planning) provides the ability to plan material requirements in the complex manufacturing process. This module generates Production and Purchase Orders needed to produce a final product in the quantities and time specified by the product's schedule, taking into consideration all the requirements for the product's child items.

MRP Input / Output:

MRP Input / Output Material Requirements Planning Input Output Purchase Orders Production Orders Parent Production Order Parent Dependant Requirement Forecast Sales Orders Purchase Orders Inventory Planning Data Bill of Materials

Initial Definitions:

Initial Definitions Item Master Data Order Intervals Define Warehouses Define Forecasts General Settings & Sales Orders

1. Item Master Data:

1. Item Master Data Inventory  Item Master Data  Planning Data tab page:

2. Order Intervals:

2. Order Intervals Inventory  Item Master Data  Planning Data tab page  Order Interval:

3. Define Warehouses:

3. Define Warehouses Administration  Definitions  Inventory  Define Warehouses. It possible to define default warehouses for the MRP.

4. Define Forecasts:

4. Define Forecasts In many cases, production companies receive Sales Orders in a short notice; however the production process might take a great deal of time. As a result, it is common for these companies to plan their purchasing and production in advance, even before actual Sales Orders are received. This is the goal of a forecast. A forecast is designed to serve as an additional requirement, therefore the goods are produced based on the forecast and when the actual Sales Orders are received, the company is able to supply the Order in a short notice. Note! Although there is no restriction for the number of forecasts you can define, only one forecast can be selected for a single MRP scenario.

5. General Settings & Sales Orders:

5. General Settings & Sales Orders The MRP considers the forecast which is within the MRP horizon, checking if there are already Sales Orders on the account of the forecast according to the Consumption Method defined in the General Settings window . The MRP will present forecast requirements only for the quantities which are not ordered yet. Meaning only the net forecast quantity will be added to the requirements. In order to determine whether existing Sales Orders are reduced from the forecast, you should use the Consume Forecast field which can be displayed in the Sales Order window .

The Logic behind the MRP Wizard:

Order generator: Production orders Purchase orders Sales order Forecast Production order ( for the "child") Reserve Invoice MRP Dependent requirements (for the “child“ only) The Logic behind the MRP Wizard Initial stock (on hand) Receipts Resources Requirements Final Stock MRP Dependent Requirements: Demand for the "child" Planning for new orders: Group orders By: Minimum amount Multiples Time intervals Lead Time Purchase order Production order ( for the "parent")

The MRP Wizard Process:

The MRP Wizard Process MRP Wizard MRP Run Item Initial Stock Receipts Gross Requirements Final Stock Order Recommen- dation Report Purchase Orders Production Orders MRP Results MRP Scenario Name Description MRP Scenario Create a new or select an existing scenario Scenario Description Simulation Planning Horizon Items Display Preferences Scenario Details Define the planning horizon and the items Existing Stock Purchase Orders Sales Orders Production Orders Minimum Stock Level Forecast Warehouses Data Source Define the data source Step 1 / 2 Step 3 Step 4 Step 5

MRP Wizard – Step 5 & Order Recommendation:

MRP Wizard – Step 5 & Order Recommendation Step 5 of the MRP Wizard displays the MRP’s run results. This window displays the schedule for the MRP requirements, allowing you to view the final outcome – the recommendations, as well as the actual documents which assemble the requirements. The outcome of the wizard is the recommendations for production/Purchase Orders only. Actual orders, according to the saved recommendations for the given scenario, are issued using the Order Recommendation Report .

Topic Summary:

Describe the MRP module. Make the initial definitions required for working with the MRP. Use the MRP Wizard. You are now able to: Topic Summary

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