Update MRP Process
The Material Requirements Planning (MRP) process identifies the material requirements necessary to meet a company's product demand.
Enter independent demand (demand that is not tied to a higher-level assembly) for parts on the Manage Sales Orders (Costpoint Sales Order Entry), Manage Inventory Reservations (Costpoint Inventory), Manage Inventory Requests (Costpoint Inventory), and Manage Master Production Schedules (Costpoint Master Production Scheduling) screens. Costpoint Material Requirements Planning will take this independent demand, explode Bills of Material (BOMs) as necessary, and determine part-by-part what material needs to be purchased and manufactured to meet the requirements and when. The products of MRP will be planned orders, which inventory planners can turn into manufacturing orders or requisitions; planner action messages, which will alert the planners of the activities they need to perform; and supply and demand information stored in a form that can be used to generate standard and customized MRP reports.
MRP can operate in Full Regeneration or Net Change modes, which you can select using the options in the MRP Method group box on the Update Material Requirements Plan screen. Select Full Regeneration mode to review all active MRP parts in the part master and determine which planned orders need to be generated. All previously created MRP planned orders and requirements will be deleted at the beginning of this process and re-added as necessary during the process. In Net Change mode, only those parts (and components) that have had some relevant activity since the last time MRP was run will be checked. Running in Full Regeneration mode will take longer than running in Net Change mode, but if you select the Allow Net Change MRP check box in the Corporate Settings block of the Configure Material Requirements Planning Settings screen, most Materials maintenance applications will require additional processing.
Costpoint performs a version of MRP called Project MRP. This means that you have the option of splitting up the MRP supply and demand by project, top-level project, or project netting group, as well as by project planning group and warehouse. You can customize this using the Project Selection Option drop-down list on the Manage Detailed Part Schedule or the Manage MRP Action Messages screens. The options are as follows:
- All Projects: Supply and demand from all inventory projects will be included.
- Single Project: Supply and demand calculations will be based on the specified project only.
- Top-Level Project: Supply and demand calculations will be based on all inventory projects that share the same top-level project as that of the specified project.
- Netting Group: Supply and demand calculations will be based on all inventory projects within the specified netting group.
- Related Topics:
- Project Planning Groups
Costpoint generates project-planning groups for each inventory project that is planned by MRP. - 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. - Creating Planned Orders
In order to balance any supply shortages with the existing demand, Costpoint Material Requirements Planning will create planned orders with suggested quantities and due dates. - Creating Planned Demand
This process calculates the requirements for MRP planned orders and for flow-through requirements for phantom and MPS planned components. - Creating MRP Messages
These are the messages that are created in MRP.