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MRP Demand for Materials in Purchased Assembly

We currently have some semi-finished goods that are set for external procurement (F). These materials have a Production BOM set up, but we have no stock of the sub-components (because we purchase the assembly).

I am being told that demand is being created for these sub-components when MRP runs (causing COGI errors). This seems to go against my logic. If the semi-finished good is set up for external procurement why would the production BOM even be looked at?

I'm hoping someone can help clarify for me how the system usually handles this situation and how I can fix the issue. (The BOM is used by engineering for product structure and where used)

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1 Answer

  • May 23, 2017 at 03:44 PM

    Hi Brett

    Could you clarify a couple of things.

    When you say sub-components do you mean these are the items that are in the BOM for the semi-finished good? If that's the case, when you display MD04 for the component what is generating the demand? Including a screen shot of MD04 would help as well as a screen shot of the MRP 1 & 2 views for the semi finished material and one of the subcomponents. The only time I've seen a purchased item create demand for components is when using subcontract purchase orders and the components in the BOM are materials provided to the vendor. Any chance you've got the special procurement set to 30 (subcontracting) for the purchased semi finished material?

    I'm also confused about the MRP causing COGI errors. My understanding of COGI is it shows errors from failed automatic goods receipts/goods issues (for example a storage location or batch number wasn't provided, or there was insufficient inventory to record consumption). I'm not sure what that would have to do with MRP planning for the procurment of an item.

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