MRP




An integrated solution for material requirements planning


 Material requirements planning (MRP)



The main purpose of module Material requirements planning (MRP), together with subsystem Logistics, in EnterpriseOne® is to provide products and materials at the right time, the right place. The module is meant to maintain a smooth logistics process based on formulations, technology, orders from customers and to suppliers, inventory, sales projections, etc. In case of shortage of a raw material, semi-finished or finished product, the system alerts the relevant staff and offers supply suggestions which can be approved with one click.
 

Basic functionality and benefits of using the module


  • Monitors the minimum amounts for each warehouse
  • Optimizes stock
  • Monitors needs directly from sales orders
  • Increases the number of sales executed in time
  • Takes into account the time required to order and deliver goods
  • Automatically creates delivery orders
  • Stacks together all orders to one supplier
  • Reduces delivery costs
  • Automatically calculates economic orders

Integration with other modules in the system

 

The MRP module, together with subsystem Logistics, provides all necessary means to completely cover the logistics process in any business.


Control of supplies planned by the system

 

In case of shortage of a raw material, semi-finished or finished product, the system alerts the relevant staff and offers supply suggestions which can be approved with one click.
 

Planning methods supported by the system

 

Shortfall products can be obtained in several ways:

  • In-house production
  • CMT production from an external counterparty
  • Purchase
  • Transfer from another warehouse

The module can support a preferred method of planning for each product.

The system supports both centralized and decentralized planning. For example, you can set the module to offer purchase from a supplier in case of shortage in the central warehouse, while deficits in other warehouses can trigger a suggestion to transfer from the central one. There is also one more option - if there is a shortage in any warehouse, a purchase from an external supplier can be planned.


MRP-3

 

The quantity dimension of any shortfall can be calculated by several methods:

  • Minimum availability – if availability falls below a certain minimum amount, the system suggests an order to reach back the target value.
  • Calculating MRP – this method calculates the exact amount which is necessary for the planning period.
  • Economic order – comparing the cost for preparing and and transportation of an order to the cost of storing these goods in a warehouse.
  • At regular intervals – this method offers to order the quantity consumed during the previous interval.


Once you precise amount, the system can adjust it to meet certain criteria. The criteria that the system supports are:

  • Batch size – with this criterion, orders are always multiples of the given size.
  • Minimum/maximum – the supplier may require a minimum (more often) or a maximum amount of an order.

Using the given methods and criteria, the system calculates and suggests an order. The final decision on the confirmation or modification of the suggestion, however, is taken by an employee working with the program.

You must keep in mind that accurate supply operations require the following subsystems to also function with a high level of precision:
 

  • Inventory management – if inventory data is not up-to-date and real-time, the supply system may generate inaccurate order suggestions.
  • Sales projections – projections of future sales are not mandatory but can contribute to the optimization of supply suggestions.
  • Customer orders – they reveal the real-life demand for finished products, and if they are not entered correctly, supply will give inaccurate suggestions.
  • Recipes in manufacturing – they are used to decompose the needs for finished products to needs for materials or manufactured products. If recipes are not true, it will lead to erroneous suggestions for supply.

 

The module works with several document types that cover the entire supply process:

  • Transfer order – for the transfer of goods from a warehouse/storage space to another warehouse/storage space.
  • Replenishment order – this is an order that addresses the need for products in a warehouse. It can come from different departments and is created by demand, with specifying a supplier and prices not being obligatory. Such an order is processed by the Supply Department, which then uses it to generate a purchase order.
  • Purchase order – such an order can be proposed by the system (document status: Planned) or made manually. It indicates an intention to buy a product from a specific provider, at a certain (optional) price.
  • Receiving order – this type of document provides input control over supplies and a comparison between the ordered goods, the received goods and the invoice – the so-called "triple-check."

MRP - 2


Module Material planning has high requirements to function properly but the benefits it brings are many times more than the efforts for its implementation. With this module, you can have more timely dispatches and optimize inventory and the time to process an order.

The module is suitable for use by both manufacturing and distribution companies.


One solution for the entire organization


EnterpriseOne® is a solution that can cover all key business processes in your company. It does not matter whether the individual modules are implemented simultaneously or added at a later stage, they will always be fully integrated.

You can use the accumulated data from all modules to make detailed reports that let you analyze your results in detail and prepare budgets and projections for future periods.