MRP

Beas is equipped with an extended integrated materials management feature, optimized for practical application in production. Material Requirements Planning (MRP) enables you to plan material requirements for a manufacturing or procurement process. The requirement is computed, which arises from customer orders, work orders and forecasts. MRP calculates gross requirements at the lowest BOM levels by carrying down net parent demands through the BOM structure. Dependent levels might have their own requirements, based on sales orders and forecasts. Planned receipts from production, scheduling and reservations are taken into account.

The results of the MRP run are recommendations that fulfill gross requirements by taking into consideration the existing inventory levels and existing Purchase Orders and Production Orders. The MRP run also takes into account defined planning rules for Order Multiple and Minimum Order Quantity.

MRP2: Beas provides the possibility, to calculate both, material requirement and resource utilization for a scenario.

The requirement coverage calculation checks which components are required for a sales order:

The MRP always breaks down the assembly requirements (e.g. from customer orders). If the sub-requirement (BoM of an assembly) is again an assembly, the system first checks whether this can be covered by stock or by planned inflow. If not, this is broken down further. For this, during the computation, the planned inflow is temporarily assigned to the planned outflow.

Example:
Sales order with Finished Product “A”
This product needs Semi-Finished Product “B” and “B” needs Material “M”

MRP_coverage_01

During the calculation of MRP, Beas considers “A” as needed. As it is order-related, the system does not check stock. You must produce this. “B” is stock-related. The system must produce it only if no stock is available. It checks stock. If available, Beas reserves the requirement temporally for this Sales order.
If no stock is available, the system simulates the production of “B” and creates a requirement for “M”.

Note:
“B” is stock-related. Beas calculates this related to the requirement of the sales order. But it uses it in view of a stock-related item. In the result you can see the Sales order which produced the requirement during calculation, but the result is always stock-related.

For stock-related items it is always better to receive the correct view in MRP. You can do this with the setting “Accumulation” = Day/Week/Month …

MRP_coverage_02b

The reservations calculated during the MRP processing are made at a time when it is not yet known which sub-finished goods or materials are actually needed.At the time of MRP computation, the full balance calculation for each item is not yet known when processing a single document (work order, sales order etc.) Therefore, Beas uses the priorities described below for assigning the temporary reservation to different pegging originators.

1.	Minimum inventory [+] Example: Item “A” stock-related, Stock: 6 Pcs, Minimum 10 The system simulates a production order from 4 Pcs. This produces a requirement for 4 Pcs for semi-finished product “B”. The requirement date for the finished-product (in this case “A”) is always today.

Existing production outflow (BoM) of work orders and planned orders
[+] Order by Delivery Date ascending, Document Number
Example: Work order existing for Finish Product “A”, 10 Pcs
This is Bill of Materials position “B”. If no stock is available, the system simulates a production order for semi-finished Product “B” and this produces the requirement for Material “M”.

3.	Customer orders, advance invoices, forecasts with setting "like customer order" Order by Delivery Date ascending, Document Number

4.	Transfer Requests Order by Request Date ascending, Document Number

5.	Forecasts (Default) Order by Plan Date ascending, Document Number

The System calculates all Minimum-Inventory requests first, then the Production order and so on. The system does not sort all requirements in one date line. The result can be a wrong order or temporal reservation for stock-related semi-finished products. But in general, this is not a problem, because it is a stock related item.

The System does not only consider stock. The following inflow is considered in order:

1.	Remains from order multiples

Inventory

3.	Production receipts, ascending by date of receipt

4.	Purchase receipts, purchase and production requests, ascending by date of receipt

This behavior can be controlled with the respective options of an MRP calculation scenario:

MRP_coverage_03b

The reservation criteria above are used by Beas in “real time” during the MRP calculation and should not be confused with a the fixed reservation that a user can do by linking stock quantities to a sales order line or the lines of a Work order BoM.

The temporary reservation determines whether sub-assemblies are broken down any further.

In case of working with fixed reservations, the reserved material is always firmly linked to a pegging, and it may not be assigned to another pegging.

Example: Item “A” has stock-related sub-assembly “B” with Material “M”.
There are 2 sales orders for the same item “A”, same quantity with the same delivery date and we currently have only 1 Pc in stock for assembly “B”.

In this case, the first Sales (lowest Doc Number in SAP) order creates a requirement for “B” and the system covers this temporarily with stock.
For the second sales order, no stock for “B” is available, and the system checks which material you need in order to produce “B”. In this case, it creates a requirement for Material ”M”.

MRP_coverage_04

Final balance result of the MRP calculation:

Saldo Item A: -2
Saldo Item B: -1
Saldo Item M: -1

Here are some issues that might arise in reading the MRP calculation results in relation with the time-line of a stock-related sub-assembly:

Sales order 1: 1 Pcs, Delivery Date: 7th
Sales order 2: 100 Pcs, Delivery Date: 9th (later)

This produces different durations for the requirement of sub-assembly “B”, because you need more time for the production of Sales order “2”.

The system calculates Sales order 1 and covers the stock for stock-related assembly "B".
Then, the system calculates Sales order 2 and no stock is available. The system simulates the production for “B” and creates the Material requirement for Sales order 2.

MRP_coverage_05

In the Saldo List for “B” you can see:

stock related item "B"	Date	Issue	Balance
Sales order 2	3th	100	-99
Sales order 1	5th	1	-100

and for the Material:

stock related item "M"	Date	Issue	Balance
Sales order 1	1th	100	-100

This means: when reading the MRP calculation results, you might see the requirements of an item at a lower level of a product structure in a different order than at the calculation time.

Note: If you use precalculation inside a sales order, the production time is always 0. This is because Beas does not support the calculation of the production time of a product structure in a calculation linked to a sales order line.

Example Sales order with Calculation:
Sales order 1 with Item “A” with calculation, 100 Pcs, Delivery Date: 10th March
Sales order 2 with Item “A” without calculation, 100 Pcs, Deliver date: 9th March
This produces a requirement for item “B”:
Sales order 1: 10th March (no calculated production time)
Sales order 2: 5th March
In MRP, first you can see Sales order 2 (sorted by requirement date), but the system calculates Sales order 1 first , and uses the existing stock for “B” for this sales order.
Note: Item “B” is stock-related. If you try to see order-related result for stock-related items, the system cannot deliver this.

Note:

All production receipts are taken into consideration, regardless of the warehouse they are posted to. Warehouse settings defined in “MRP calculation scenarios – Warehouse” are not considered here.

The temporary reservation calculated by MRP can be displayed after the computation in Order recommendation report > Origin.

In this list, all temporary links are displayed in a structure view. See origin of requirement structure.

Consider inflow in future

If the date of delivery would be taken into consideration, the following problem could occur:

Assembly “A” contains assembly “B” with material M1.

Sales Order: assembly “A” on May 5th

Requirement of assembly “B” on May 3rd and material M1 on May 1st.

Work order is created for May 3rd, material is ordered for May 1st.

All requirements are covered.

MRP_coverage_06

The customer asks for a delivery one day earlier, on May 4th:

If the requirement coverage calculation would take into account the delivery date, the work order would no longer cover the requirement.

In effect, assembly “B” would be broken down, although the balance is 0. From the work order and the sales order a requirement would arise for material M1, and thus it would be ordered twice.

To prevent this, the delivery date is not considered.

MRP_coverage_07

The delivery date is taken into account, but it may be in the future. This is set up in Configuration wizard > Detail > Breakdown replenishment > “Consideration of future receipt”.

The delivery date is not taken into account - except for point 1 - since otherwise there would be a risk that the sub-material is dispatched twice. For this reason, Configuration wizard > Detail > Breakdown replenishment > “Consideration of future receipt” parameter is set to 99 days.

If “Consider inflow in future” is activated, the system covers the work order, which is 1 day in the future and you need in the example the Material "M" only e.

Filter Only shortage

This filter shows all items that need to be ordered or produced, or for which the planned inflow is too late.

In this case, assembly “B” would be shown as shortage, as the balance for 4th May is negative.

The inflow to be used can be specified in MRP wizard > Detail > Breakdown of resources.

Material requirement planning