MRP

The Material Requirements Planning (MRP) module enables you to plan material requirements for a manufacturing or procurement process based on the re-evaluation of existing inventories, demands, and supplies on changing planning parameters (such as lead time determination, make or buy decisions, and holiday planning). MRP calculates gross requirements for the highest bill of materials (BOM) level, based on existing inventory, sales orders, purchase orders, production orders, forecasts, and so on. It 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. Let us now look into the different windows that are available in the MRP module: - 

• Forecasts Window: -  This window is primarily used to create forecasts for items. In many organizations the production process might consume quite a bit of time, so organizations plan to purchase and produce items in advance, even before they receive the purchase order or create a sales order. This is the goal of a forecast, which is designed to serve as an additional requirement. Therefore, the goods are produced based on the forecast, and when the actual sales orders are received, the company is able to supply the order quickly.

• MRP Wizard: - This is the wizard that is used to avail the standard MRP functionality that is available in SAP Business One. The results of the MRP run are reports and 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 predefined planning rules such as Order Multiple, Order Interval, Minimum Order Quantity, Inventory Level, and so on.

• Order Recommendation: - This window is used to filter out the recommendations generated by the MRP wizard. If you have run a scenario and saved the recommendations for several times, the application stores the results of the latest MRP run and deletes the results of the previous run.