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Former Member

Problem with MRP planing Function.

All,

I have a problem with MRP planning and I am wondering has anyone either came across this issue before, Or have a solution?

I work in a bakery, with production of around 3.5 million breads a week over many different SKUS.

Currently we work on a weekly forecast with a1-3 day lead time For customers.

As ye are all aware our MRP works on the basis of opening balance- Sales+ Production= Closing balance.

For the sales part it works by consuming the forecast, the more sales orders we get in the less forecast we have.

Here's my problem,

The sales forecast due date falls on a Monday, which means after the Monday the sales forecast cancels itself. which leads to the problem of only being able to plan on a Monday. is there a way we can change the due date to being the full week?

*Please note our week starts on a Monday and ends on a Sunday.

Kind Regards,

Louise 😊

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2 Answers

  • Best Answer
    Jun 05, 2015 at 04:51 PM

    Hi Louise

    By forecast do you mean planned independent requirements? In this case, the PIR will be always placed on the start of the period. This is a basic pre-requisite of the system design.

    One option can be the creation of PIRs using period P.

    BR
    Caetano

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    • Former Member

      HI Caetano,

      Thanks for the reply, by forecast I mean our planned sales.

      DO you think this could work? Are these the same as posting periods?

      Regards,

      Louise

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    Former Member
    Jun 06, 2015 at 03:36 AM

    Louise,

    The sales forecast due date falls on a Monday,

    This is common. Assuming that you build to forecast, and assuming that the actual demand date of the forecast falls on 'Monday', this would mean that the business model is that you build your product during the previous week according to the forecast, and then you sell it via sales orders on Monday/Tuesday/Wednesday/Thursday/Friday of the current week. On Monday, you have a substantial amount of stock, and by Friday, all of that stock that you built (during the previous week) for the forecast should ideally have been sold via sales orders.

    On Tuesday, you no longer care about this week. It is now time to begin building toward NEXT week's forecast.

    which means after the Monday the sales forecast cancels itself.

    Well, that's an odd way of putting it. Sales Forecasts don't generally 'cancel' themselves. You may, however, have configured your system such that you ignore forecasts before 'today', since it typically makes no sense to build toward a forecast that lies in the past. When you build to a forecast, you typically build toward future planned requirements. The past is past.

    which leads to the problem of only being able to plan on a Monday.

    I don't understand this statement. Unless there is infinite capacity, on Tuesday, most companies would begin building toward NEXT week's forecast. This would happen throughout the week.

    is there a way we can change the due date to being the full week?

    anything is possible. As alluded by expert Caetano, some companies spread the weekly forecast requirement such that it is equally distributed during each workday of the week, instead of just creating a single demand on Monday. MD67.

    Best Regards,

    DB49


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    • Former Member Former Member

      Louise,

      When explaining all this I can see that its not a major problem from a system Point of view, But both Company/owner wants the System working with a Weekly forecast and A due date of the Last day of the Week.


      One of the jobs of a functional analyst is to warn the client of the adverse consequences of his own ignorance.


      I am not going to give a treatise on the relationship between forecasting, sales, and consumption. Your client evidently has told you what he wants. I will assume that you DO know the adverse consequences, and have walked him through how this will affect his business.


      One way to have 'weekly' forecasts which places PIR demand on Fridays, without using an enhancement, is to use a Planning calendar.

      Create a Planning Calendar; MD25. The calendar should be created in weeks; with the end date of each week as Thursday.

      Assign the Planning calendar to the Material Masters; MM02 tab MRP2.

      Create the PIRs with Planning period "K". Now, each requirement date will fall on a Friday in MD04; and MRP will use these dates for planning and for consumption of sales docs.

      I also recommend that you re-read expert Caetano's answer, where he said

      .....the PIR will be always placed on the start of the period. This is a basic pre-requisite of the system design.......


      Best Regards & Good Luck,

      DB49

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