MRP Fundamentals - How to set up part planning
The most important piece in setting up MRP in VISUAL falls under the PLANNING tab in Part Maintenance.
The first thing you need to be aware of is that you can have a unique set of planning parameters for each of your Independently Planned Warehouses AND one set of planning parameters for your other warehouses deemed Universal
What the difference between Universal and Independently planned warehouses? Read this
Select the Warehouse ID or Universal you are wanting to set the planning parameters for. Please note that VISUAL will always default to Universal when you first call up a part.
Planner User ID
This is a free form field that can be used for searching and reporting. Basically, you can enter values that you can easily filter on.
Buyer User ID
As with the Planner User ID, this is a free form field that can be used for filtering - however values entered in this field will be maintained in the VISUAL database and existing values can be selected from a dropdown box.
Safety Stock Qty
This is used where you would like to maintain a certain quantity level for a part. You may want to consider this for parts with long lead times. MRP will look at upcoming demand and supply and your projected qty always wants to meet this safety stock quantity.
Leadtime (in Days)
This is the number of days it takes between the time you place a supply order and when the part is received into inventory. Leadtime is always in days. This value is used to compute when to release an order and set the want date of supply orders.
These fields are here to help you make better decisions and plan more efficiently.
Min - the minimum quantity that MRP will generate a planned order
Max - the maximum amount that the MRP will generate a planned order
NOTE – for clarification, this only caps the quantity of an individual planned order. So, if you have demand for a 1000 units for a part and you have a Max value of 200. MRP will generate 5 planned orders for 200 each. This allows you to better manage your orders. For instance, you may shop floor constraints where you can only manufacture 200 units at a time – so you would not want your work orders with build quantities greater than 200.
Multiples of – allows you to define the multiple to use when MRP plans an order. For example, if Part A is ordered in multiples of 10, and you have demand for 7, then MRP will generate a planned order for 10.
This is the key indicator that will determine how MRP will plan for the part.
MRP will not generate planned orders. It will completely ignore this part. FYI – This is the default setting when creating a part.
Most commonly used when first starting with MRP. This setting will have MRP replenish exactly the quantity by which demand exceeds supply. It will plan the supply order to match each element of demand.
So if you have 3 orders creating demand, one for 2, one for 5 and one for 10 ... MRP will create 3 planned supply orders - with quantities of 2, 5, and 10 respectively
It’s a one to one relationship unless you use min/max/multiple of – then planned orders will reflect those parameters.
MRP will generate planned order to meet a shortfall on a given date – PLUS the number of days you specify in the Days of Supply field
Fixed and EOQ
These settings a basically the same. Regardless of the amount of the shortage – MRP will plan for orders using the fixed amount specified in the Order Qty field
Planned orders are generated to meet quantities and dates specified in the Master Production Scheduled. This option is only available if you are using Advanced MRP and dealing with forecasts
Days of Supply
Used with period of supply
Used with Fixed and EOQ
Order Point Qty
If the part is NOT PLANNED, you can use this field to enter the minimum quantity you want to keep on hand. When it falls below that amount it will appear on the Order Point Report (in the Material Planning Window) for you to place an order. NOTE – MRP WILL NOT plan the order – you need to manually create it when needed
Order Up to Qty
If the part is NOT PLANNED – you can use this field in conjunction with the Order Point Qty field to determine quantity to use to create a supply order.