Which MRP Type is better?

[Former Member]

Client is Distribution Center and he gets all the products from Internal company vendor .

Which MRP type?

manual re order point

Auto matic reorder point

forecasting based planning.

thanks

sweth

[fabio_almeida · Accepted solution]

Hi Sweth,

MRP Type corresponds to the way that you wish to run the MRP functionalitty to the material/plant. It works as a control method to the material/plant.

For example:

ND - No MRP. For this material MRO will not run. It is used to obsolete material.

PD - MRP based on the requiirement. It works as 'when requested'. MRP will only suggest the exact quantity from the requirement (reservation) to be bought/supplied. For this MRP Type, you should use Lot size 'EX -Lot-for-lot order quantity'.

VB - Manual reorder Point. You have to define a reorder point and safety stock manually into the MRP1 view. Then, everytime that this reorder point is violated, the MRP is run, and suggest a quantity to be bought/supplied. for this MRP type, you could use Lot size 'DY - Dynamic lot size creation'. This way, quantity to be suggested by system will be calculated considering the economic quantity based on the previous consumption and forecasting.

VM - Automatic reorder point plng. It works as 'VB', however the reorder point is re-calculated by system automatically.

W - Forecast-based planning. For this MRP type, you have firstly to run a forecasting via Forecasting view but it just make sense if you have a consumption history.

Answering your question:

Which MRP Type is better?

-> for obsolete materials: ND

-> low consumption and high material price: PD

-> regular consumption and price not too high: VB

-> high cosumption and low price: VB

-> regular consumption in specific periods: W

I hope it helps you.

Best Regards,

Fábio Almeida

MM Consultant

[Former Member · Accepted solution]

thanks for all replies

sweth

Edited by: Sweth123 on Mar 29, 2011 9:12 PM

[Former Member · Accepted solution]

Thanks for the reply ,

My Client is distribution company , ( Mechanical Spare parts , tooling there is no shelf life associated with it . )

requirement is that purchasing should be able to make decision based on 3 factors

1) Schedule agreements from major Customers.

2) Forecast based on historical consumption

3) reguirements from other customers where demand is unknown.

parts are highly consumption items/fast moving items.

Can we have a MRP Type which takes all the above factors into consideration?

Thanks

Sweth