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MRP settings for 3 month lot size

Hello, we have agreed to a 90 day stocking level with our customer of 300,000 units. How can I configure MRP in the material master to reorder at 100,000 units and replenish to a maximum stock level of 300,000? Currently, I am using an annualized forecast and PD strategy but it is creating planned orders for each month. Our intention is to produce the material approximately once every 3 months.

Cheers,

Justin

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  • Best Answer
    Posted on Jul 21, 2016 at 09:25 PM

    Hi Justin

    The customizing transaction to create lot sizing procedures is OMI4.

    You can create a new lot sizing procedure as a copy of MB, changing the number of periods to 3.

    If you want to reorder at 100000 units, you should use a reorder point MRP type, such as VB.

    BR
    Caetano

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 22, 2016 at 11:23 AM

    Hi Justin,

    please use MRP type as VB-reorder point planning and

    HB-replenish up to maximum stock level.

    Here 2 calculation will act for determining requirement

    formula1 -based on Maximum stock level (in your case 300,000)

    Maximum stock level-plant stock-existing fixed receipts=lot size

    300,000-100,000-0=200,000 (quantity as per formula 1)

    formula2-based on reorder point

    Reorder point + total requirement-plant stock-existing fixed receipts=lot size

    100,000+300,000-100,000-0=300,000 (quantity as per formula 2)

    Now you can choose if you only want Maximum stock level to be considered then do not consider external requirements for MRP in this case only formula 1 will be used which will give you quantity not more than maximum stock level.

    Also if stock falls below reorder point then system will create requirement for shortfall quantity.

    formula 2 will be applicable if external requirements are taken into consideration for MRP.

    in this system creates proposal by comparing both the formulas and quantity which is greater will be used for order proposal.

    for your case do not consider external requirements into consideration so always quantity as per formula 1 will be calculated for order proposal..

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    • Former Member

      see below example

      if plant stock is 50,000

      reorder point-100,000

      Maximum stock level-300,000

      Now planning file entry will be created as plant stock is less than reorder point.

      when MRP run will be done system will create order proposal

      Maximum stock level-plant stock-existing fixed receipts=lot size

      300,000 minus 50,000 minus 0=250,000 units

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