Cloud MRP – Material Requirements Planning
Rootstock Material Requirements Planning (MRP) is the software engine that will use the sales order and forecast demands in conjunction with the effective production bill of material and by reviewing item inventory balances will generate planned supplies in a time phase manner to offset the outstanding demands for end items and sub assemblies.
Specifically, MRP generates what are termed planned work orders for manufactured items and planned purchase requisitions for purchase or subcontract items. For firmed (or greater supplies) it generates reschedule or excess messages when, and if, appropriate.
Rootstock Material Requirements Planning (MRP) uses information from Sales Order Management to drive the top level demands. Forecast demands, or not only end items but any item can be entered as well. A forecast demand for an item denotes the start period date and the end period date and the quantity forecasted for that period. MRP will perform the traditional ‘netting’ and plan to the greater of the Sales Order Demand and Forecast demand (by period).
The MRP Engine uses the typical algorithms in the industry and will proceed level by level through the Bill of Material starting with the top level (i.e. end item) of the BOM and review the demands and safety stock requirements, netting out the inventory and firmed (or greater) supplies and first suggest reschedules for firmed (or greater) supplies and then create planned supplies as appropriate.
The MRP Engine will always use the ‘effective’ Bill of Material in its plan. It accomplishes this by reviewing the scheduled pick dates of the planned work order supplies or planned subcontract requisition supplies and using that date to extract the components that are ‘effective’ and ‘implemented’ as of that date in the generation of the work order and subcontract requisition demands.
MRP can be planned by division and by site as well as by project (in those divisions where project control is applicable). It uses planning policies such as ‘lot for lot’ or days cover. Since many lead times can be stipulated at the item (or commodity code) level, the MRP Engine also determines for the work order supply the scheduled firm date, scheduled release date, scheduled pick date as well as the scheduled start date on the shop floor and the scheduled due date. For a requisition, it will determine the scheduled firm date, purchase order place date, date it is due on the receiving dock as well as the due date it is to be stocked. For those parts identified as items to be planned using ‘re-order’ point, the MRP Engine can also perform re-order point computations.