Supply and Demand

For a given part/inventory abbreviation/warehouse during MRP processing, Costpoint reviews gross requirements (demand), compares them with existing inventory and scheduled receipts (supply), considers the associated need dates and availability dates, and generates planned order supplies and planned order demands to balance the required supply and demand.

Contents

Field	Description
Safety Stock	If you selected the Safety Stock check box in the Configure Material Requirements Planning Settings screen, it is considered a demand in the inventory project's planning warehouse, with the need date matching the current date. If planning is done separately by warehouse and no planning warehouse is specified for the project, safety stock is not considered a requirement, and no planned orders will be generated for it.
Reservations	All approved reservations are considered demand and include approved reservations for Inventory, Sales Order, Manufacturing Order, and Purchase Orders. In addition, the demand also includes pending MO and Purchase Requisition reservations. See below for transfer reservations. If you selected the Pending Sales Orders or Pending Inventory Requests check boxes in the Configure Material Requirements Planning Settings screen, demand also includes pending reservations for sales orders, along with pending reservations for inventory issues and inventory transfers (as long as the From Inventory Abbreviation against which the reservation is made is active).
Purchase Requisitions	All requisitions with a status of Pending, In-Approval, or Approved are considered as supply, as long as the requested quantity is greater than the generated quantity (including quantity assigned to purchase orders). The planned available date for such requisitions is based on the requested date (or assigned PO due date) plus lead times for purchasing receiving and purchasing inspection.
Purchase Orders	All inventory purchase orders with a status of Pending or Open are considered as supply, as long as the open order quantity (On Order Qty - Received Qty + Reject/Replace Qty) is greater than zero. Only the releases to blanket orders are not considered as supply. Planned available dates for such purchase orders are based on the due date plus lead times for purchasing receiving and purchasing inspection.
Manufacturing Orders	All manufacturing orders with a status of Firm Planned, Released, or In-Shop are considered as supply, as long as the allocated Build Qty is greater than Completed Qty. Closed or completed MOs are not included as supply quantities. MOs of the Customer Repair type are also not included as supply if you selected the Exclude Customer Repair MOs as Supply check box in the MRP Settings screen. The planned available date the due date plus lead times for manufacturing stocking.
Transfer Reservations	All transfer reservations with a status of Approved or Pending (if the Pending Inventory Requests check box is selected in the MRP Settings screen) are considered scheduled receipts to the associated project/inventory abbreviation/warehouse. The need date of the reservation line is the scheduled receipt date. Transfer reservations are a demand on the part/inventory abbreviation from which it is to be transferred, and a supply for the part/inventory abbreviation to which it is to be transferred.
Available Inventory	This is determined for each part by project planning group (and warehouse) by adding the quantities in the following types of inventory warehouse locations: On-Hand, In-Inspection, Re-inspection, Shipping, and MRB (only if you selected the Incl MRB as Available Inventory check box on the Configure Production Control Settings screen of Costpoint Production Control). Inventory with an inactive inventory abbreviation is excluded.