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MRP Make to Order

  • 16 June 2021
  • 9 replies
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E
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I have a manufactured part I only want to build when I have actual demand, not to forecast. I would use a planning method of next level demand, however, there are very long lead times for the purchased raw material to build the component and I would like the Finished Good forecast to drive requirements for the purchased material.

 

Consider this example…

Finished Good – Bike

Manufactured Component – Wheel

Purchased – Tire

 

I want to purchase enough tires to support the Finished good demand. However, I don’t want to assemble the wheels unless there is actual demand for the bike. Reason being there is a very long lead time on tires and a very high cost of assembling wheels.

Is it possible to not have MRP generate requisitions for the component or finished good, but still generate purchase reqs for raw materials? Is it possible to accomplish this, and still have the make parts included in CRP?

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Best answer by Björn Hultgren 16 June 2021, 22:20

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matt.watters
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What IFS version?

What is your plan for generating the supply of the Wheel?

Regards - Matt
E
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App 10. 

 

We run MRP daily. Shop order reqs are generated for the wheel based on Master schedule for the Bike. Some are for forecast, some are for actual demand. 

matt.watters
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What is your plan for generating the supply for the Wheel if the system does not generate requisitions for the Wheel? Create the Wheel shop orders manually?

And the Wheel is an MS1 part also?

Regards - Matt
Björn Hultgren
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So you need to master schedule the finished good. But set the master schedule to not generate any supplies. Instead the finished good and the manufacturered component is DOP supplied. Site is set to explode through DOP parts. Now MRP will drive supplies for the purchased part according to the master schedule of the finished good, and when an actual customer order arrives, shop orders for finished good and manufactured components are generated through the DOP structure. 

E
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Matt, The wheel is not an MS part, it is only used in the finished good.

“What is your plan for generating the supply for the Wheel if the system does not generate requisitions for the Wheel?” - I would like MRP to generate supply for the wheel only when a customer order is placed for the bike.  

 

I think DOP is what I’m looking for. I will do more testing with it and see if it will meet our requirements. 

 

Thank you both!!

M
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Hi guys,

I think the MS-DOP approach it the best here. BUT bear in mind if you go for this option you will not see CRP load for your Wheel, until you start creating the DOP Orders (when the CO demands starts to drop in)

So it is almost like a situation like: “You can't have your cake and eat it”

Is the load calculation very important for you Eric?

If the are some key resources associated with the manufacturing of your sub-assemblies, you could “model” that using RRP for your MS top part(s). Input to RRP is data from your MS level 1 parts only. (RRP has been much improved in Apps10). You define your routing list for RRP in the Resource Routing screen.

Interesting discussions indeed :-)

 

E
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I ran into that problem when testing this out last night. CRP load is not generated for the wheel. Sounds like I have to choose to either generate requisitions for parts I do not necessarily wish to build, or not have visibility to capacity requirements unless the customer orders come in. 

 

I have not used RRP. I may have to investigate that further. Thanks!

M
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Just give you another option for the MS-MRP solution - again probably not optimal for you.

In MS Level 1 part screen you have the flag Create S/P Req. If you set this one to: Create S/P from MRP

(Field Description Create S/P from MRP: MS proposals do not create supplies. For actual demands of MS-handled parts, supplies will be generated by MRP/PMRP. However, the component demands will not be exploded for these parent MRP/PMRP requisitions. Instead, the component demands are generated from the parent MS proposals.)

… then on the bike level, the SO reqs will be generated from MRP, when you get the CO Lines. So on top level you will kind of have Make-to-Order planned but using MRP Lot sizing rules. Then on lower level you get the SO Reqs and PO Reqs driven by the MPS.

However now you get your SO Reqs again for the WHEEL :-(

But you do get CRP load on subassembly level :-)

E
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Excellent suggestion. I think sacrificing CRP for correct reqs is the better way to go here and am going to pursue DOP. It’s too bad both cannot be achieved. Maybe in a future update :). Something like a planning method of Next Level demand with demand pass through would fit the bill.

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