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> Set up Sage 200 / Manufacturing / Entering planning settings / MRP

MRP (PLN settings)

Use the MRP tab to enter settings that allow you to filter, define planning periods, make recommendations, buy recommendations, set defaults and aggregate demands. The Production safety lead time and Aggregate Demand settings are key in affecting the behaviour of Graphical Planner.

To enter MRP settings

Open: Planning > Utilities > System Set Up > Planning Settings | MRP.

Enter the following settings:

Filters

Select Cancel Works Orders if you want MRP to make recommendations to cancel works orders.

Select Cancel Purchase Orders if you want MRP to make recommendations to cancel purchase orders.

Note: What you select here, sets the default selections for the Works Order cancellation options on the Manufacturing tab within the Stock Control record.

Firm Planning Period (days)

Set a number of days before the system date when purchase orders or works orders cannot be cancelled in MRPMaterials Requirements Planning (MRP). MRP recommends purchase orders, transfers and work orders to balance supply and demand..

Make Recommendations

Select the Copy Sales Order comment lines check box to copy the contents of SpareText1 and SpareText2 in table SOPOrderReturnLine to the Memo tab on a works order, created from a make recommendation.

Note: This only applies if you have modified the released system.

Apply Replenishment Horizon

Select the date MRP will use when applying the replenishment horizon.

Demand Due Date

This option is selected, by default.

MRP checks beyond the Demand Due Date to see whether there is stock already on order that can satisfy the demand.

Note:

This option can potentially result in a Demand Due Date being missed if MRP relies on a replenishment within the horizon, instead of raising a new recommendation to fulfil the demand.

See an example

You have a ten day supplier lead time and ten day replenishment horizon. Sales orders are replenished with purchase orders, and your reorder quantity is 1000 units.

A sales order for 100 units is raised on the first of the month, and is promised for the 20th. MRP generates a purchase order for 1000 units, due for delivery on the 20th of the month.

If another sales order is raised for 200 units, that is promised on the 17th of the month, Sage 200 will assume it is acceptable to despatch to the customer late. It will use the stock which is due to arrive on the 20th, to fulfil the order promised on the 17th.

You can specify the number of days MRP can look ahead in the Replenishment Horizon box on this tab. Or, you can store specific replenishment horizon values for stock items on the Replenishment Horizon (days) value on the Manufacturing tab of Stock Item Details.

Note: The stock item replenishment horizon value overrides replenishment values entered in Manufacturing.

Current Date

Select this option if you only want MRP to look ahead of today's date to check whether there is stock on order that can satisfy the demand.

See an example

You have a ten day supplier lead time and ten day replenishment horizon. Sales orders are replenished with purchase orders and your reorder quantity is 1000 units.

A sales order for 100 units is raised on the first of the month and is promised for the 20th. MRP generates a purchase order for 1000 units due for delivery on the 20th of the month.

If another sales order is raised for 200 units, and this is promised on the 17th of the month, Sage 200 will assume you must fulfil the sales order on time, and generate another purchase order recommendation. This purchase order will be for 1000 units, due for delivery on the 17th of the month. You will be able to despatch each order, to each customer, on the dates promised. You may also be recommended to cancel the later purchase order, if it can be fulfilled by stock delivered by the supplier, for the earlier purchase order delivery date.

This option ensures that the Replenishment Horizon is only used for orders that are due too early to be satisfied on time.

Note: You cannot change the selection when you run MRP.

Buy Recommendations

Select the Copy drawing revision number to check box to copy the drawing revision number SpareText2 in table POPOrderReturnLine for purchase orders, created from a buy recommendation.

Note: This only applies if you have modified the released system.

Select Use base unit of measure to ensure MRPMaterials Requirements Planning (MRP). MRP recommends purchase orders, transfers and work orders to balance supply and demand. raises purchase orders using quantities expressed in the base unit of measureThe quantity in which a stock item is measured for purchase, sale or storage. instead of the stock unit. The default is to use the stock unit.

MRP Run Defaults

Production safety lead time

Set a number of working days to add to the lead timeThe number of working days elapsing between placing an order for an item and taking delivery. of every works order recommendation.

Note: This does not change the due date on the works order. The start and end dates are recalculated to include the safety lead time.

How this affects Graphical Planner

This value displays as a safety planning time in the Graphical Planner Sequencer.

Note: MRP adjusts the safety production lead time for non-working periods.

Purchase safety lead time

Set a number of working days to add to the lead time of every purchase order recommendation.

Note: This does not change the due date on the purchase order. The start and end dates are recalculated to include the safety lead time.

Replenishment Horizon

Set a number of days to add to due dates to find the Replenishment Horizon. Demands can be tagged to future replenishments rather than MRP suggest additional replenishments.

This value defaults when MRP is run although you can overwrite the value at that time.

Note:

To store specific replenishment horizon values for stock items, enter the Replenishment Horizon (days) value on the Manufacturing tab of Stock Item Details. The stock item replenishment horizon value overrides replenishment values entered in Manufacturing.

Aggregate Demand

Select the Aggregate Demand check box to group together demand for like products in a product time bucketA time period (for example, a day) in which all demands or requirements are added together and treated as one..

The product time bucket is determined from the Aggregate Demand (days) value set for the stock item on the Manufacturing tab.

By selecting the option, when identifying subassembly recommendations in MRP, you can combine several requirements for the same manufactured components.

There are two ways of aggregating demand: standard and optimised. The default is optimised.

Optimised aggregation will create all buckets due to demand. It will not start a new bucket if there is no demand on that day.

Standard aggregation will create the first bucket due to demand but will then create the subsequent buckets automatically. Therefore, standard aggregation will lead to having empty buckets.

For example, a stock item has an Aggregate Demand (days) value of 2. The pattern of demand is as follows:

Standard and optimised buckets both start the first bucket on the first demand day, day 2. However, the next optimised bucket will start on day 6. Standard aggregation will create an empty bucket for days 4 and 5.

How this affects Graphical Planner

In the Graphical Planner Edit Orders Information window, the Tag box shows all top level demands that the subassembly is associated with.

If you select a top level tag in the Preactor Locator window, it highlights all associated operations and all related orders or recommendations created by the MRP tag.

Treat Overdue Purchase Orders as due for delivery today

Select this check box to ensure:

  • Unfulfilled purchase orders with a due date earlier than the MRP run date (i.e. purchase orders where delivery is late) are not cancelled automatically.
  • New orders are issued when MRP is run.

    • Note: If the Replenishment Horizon is greater than the overdue period then new orders are not issued.

Warnings about overdue purchase orders are listed in the MRP output log.

You can leave the check box clear to ensure the original order is cancelled and a new order issued.

Note: If you leave the check box clear, too much stock could be ordered.
MRP Record Defaults

Automatically Update Dates

Select the Automatically Update Dates check box to update dates for recommendations automatically when you change suppliers.

When changing supplier, which dates should be updated?

Select whether you want to update the Start Date or End Date, when changing supplier.
See also

Other tasks

General (PLN settings)

Graphical planner (PLN settings)

MPS (PLN settings)

Reference

Graphical Planner

Manufacturing (stock record)

Running MRP

Preactor locator window

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