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MRP: spread the supply

  • 10 June 2021
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Hi,

 

is there a way to spread the purchase reqs that MRP creates, without splitting the shop order?

 

Assume we have a big shop orders, of several months. We create repetive, 200.000PCS for example. All the same, one operation. One piece after the other.

MRP will create a pur req to buy it all before the SO starts. But we would like to spread this out, a pur req for each 2 weeks for example, as we consume the components on a constant rate.

 

Is this possible?

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Best answer by Tharindu Illangasinghe 11 June 2021, 19:23

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Tharindu Illangasinghe
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Hi @First Employee 

 

I can think of two main options here. Each has its own pros and cons, so you may evaluate further. 

 

Option 1 : Using “Order Gap Time”

Setup your component part with a Order Gap Time of 14 days (2 weeks).

So the gap between PRs will be 2 weeks

 

Set the Max Lot Size to “15,000”

So each PR line will be of 15,000 qty supply. (set the qtys as per your specifics. I believe you have a prior agreement with you supplier to deliver a fixed qty to a schedule)

Now, according to these settings a PR will be created for every two weeks, each demanding 15,000 from your supplier.
 

Afterwards, I have created a Shop Order for the parent part ( 200.000PCS as per your example)

 

Executed MRP.

 

As a result you will observe the material planning like below.

A PR line has been created for every two weeks, check the Due Date. (There are more PRs, just need to scroll up in the window)

You can convert above PR lines to POs as and when required.

Few things you can try out here. like, adding some lead time for your purchasing component, if you are using Forward Scheduling what would be the behavior, what happens when material lines are connected to operation lines, etc.

Option 2 : Extend as you move

This I have seen with 1,2 customers. Instead of creating a Shop Order for 200.000PCS at once, create a shop order for like 15,000PCS. Then proceed with work. Once you are closer to completing 15,000 then increase the Lot Size of the shop order to 30,000PCS. So, you can manufacture the additional 15,000 for next two weeks. Increment your Shop Order like this manually until you hit the Lot Size of 200.000PCS.

Some final remarks, this looks like a repetitive manufacturing practice. Have you thought about using Production Lines/Schedules setups ?

 

Best Regards, Tharindu Illangasinghe, https://www.linkedin.com/in/tharindubi/
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