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Which MOQ and Lead time input is used in the MRP

  • 27 January 2022
  • 3 replies
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Hi,


I am looking for information about the hierarchy between ex. inventory part and supplier for purchase part, which is the top level in regards to data structure.
For example, it is possible on the supplier for purchase part, to setup "min order qty", and on the inventory part a "min lot size", this is the same: the minimal that can be purchased?

Since the inventory part cannot be blank, and it seems this number is used in the MRP, then when is the number from the supplier for purchase part used?
The same for lead time, lead time can be se up on different levels, but which controls in the end the MRP.

Looking for info exactly which fields are used in the MRP and which can override each other?

 

BR

Anders

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Best answer by matt.watters 14 April 2022, 18:01

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Hi, 

For any purchase related parameters (min order size, std lot size, lead time, etc.) you would want to set that on the supplier for purchase part. MRP will consider those parameters. For a purchased raw part, the inventory part planning data page - safety stock is the one field that MRP should consider. The similar fields you see on the inventory part planning data page (min order size, max order size. std lot size) is related to a manufactured part type. 

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MRP uses the information in the Planning Data tab of the Inventory Part in its order lot sizing calculations. MRP (except for multi-site planned parts) does not consider anything in the Supplier for Purchase Part record in its order lot sizing calculations.

For all part types (manufactured or purchased), the relevant fields are: Planning Method, Safety Stock, Min/Max/Mult Lot Sizes, and Scrap Factor (%).

Std Lot Size is not used by MRP in any of its calculations. Std Lot Size is used only: 1) for calculating the manufacturing lead time (for that specific lot size) and 2) in Costing Calculation for spreading the Setup Costs over the Standard Lot Size for better unit costing.

Min Order Qty on the Supplier for Purchase Part page only comes into play when a Purchase Requisition is entered manually or converted to a Purchase Order. The user will be presented with an information message that "The minimum quantity when ordering Part No [xxx] from Supplier [yyy] is [z] EA." There is no hard stop here; the Purchase Order can be created under the Min Order Qty. For convenience, though, you could set the Min Order Qty on the Supplier for PP equal to the Inventory Part Min Lot Size to avoid this information message.

@asn  I do not understand the statement "Since the inventory part cannot be blank,...". Which field are you referring to?

Supplier Manufacturing Lead Time, along with data in any Supply Chain Matrix, will be used to determine the Latest Order Date on the Purchase Requisition Line.

@matt.watters You are not allowed to leave min, max , mulitple etc. blank on the inventory part, therefore if you cannot override these values from the supplier for purchase part, then i wondered what these values where used for in the MRP. But you answered that, thanks.