By Francisco Henry,2014-09-07 21:04
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    Consumption-Based Planning of Parts in MPN-MRP Sets


    Consumption-based planning is based on past consumption-values, and on the forecast or statistical procedures for future requirements. The future requirement arises either from the shortfall of a determined reorder point or from forecast requirements calculated by the system from past consumption values.

    ; Reorder point planning

    In this MRP procedure, procurement is always triggered when the total from the warehouse

    stock and the fixed receivals falls short of the reorder point.

    The reorder point and the safety stock are central control parameters in reorder point planning.

    The MRP controller can either determine them manually, or the system can calculate them

    automatically. Therefore, reorder point planning has two procedures:

    o Manual reorder point planning

    You determine the reorder point and safety stock in the material master record.

    o Automatic reorder point planning

    The integrated forecast program determines the reorder point and safety stock; using

    the past material consumption values, the program determines the forecast values for

    the future requirement. The MRP controller determines the service level and

    replenishment lead time of the part, and the program uses these to calculate the

    reorder point and the safety stock, and copies them to the respective material master


    The forecast program is executed at regular intervals, therefore the reorder point and

    safety stock adjust themselves to the respective consumption and delivery situation.

    This allows a reduction in stock.

    ; Forecast-based planning

    Forecast-based planning is also oriented to material consumption. As in automatic reorder

    point planning, forecast values are calculated for the future requirement by using the

    integrated forecast program. As opposed to reorder point planning, however, in forecast-

    based planning these values build the requirement quantities for the planning run. This means

    that the forecast values are immediately effective as forecast requirements in requirements


    Forecasting is performed at regular intervals and forecasts the future requirements based on

    past data. This is advantageous, because the automatically calculated requirement is

    adjusted to the current consumption pattern. The forecast requirements are reduced by

    material withdrawals so that the implemented portion of the forecast requirements is not


    Inventory-managed manufacturer parts

When using inventory-managed manufacturer parts, the system performs Forecasting for the

    leading part in the MPN-MRP set. To do this, the system cumulates the historical Consumption

    Values for all parts in the MPN-MRP set.

    In reorder point planning, the system compares the total from the warehouse stock and fixed receivals for all parts in the MPN-MRP set with the reorder point of the leading part.


    Forecast of parts in MPN-MRP sets

    The leading part represents the whole MPN-MRP set and is procured if the need arises.

    To forecast the requirement of the leading part on plant level, it is not sufficient to consider past consumption of that part. The system also has to consider the stock and cumulative historical consumption values of all parts in the MPN-MRP set. (Therefore, the period indicators for all parts in a MPN-MRP set have to agree.)

    The system uses the procurement data of the leading part. It considers the service level of the leading part to calculate the safety stock and the reorder point for reorder point planning. The forecast values (forecast consumption) of the leading part of a MPN-MRP set are the forecast values of the whole MPN-MRP set.

    Total consumption of MPN-MRP sets

    In the Consumption view of the material master for the leading part, both the individual consumption

    value of the leading part and the cumulative consumption value of all parts in the MPN-MRP set are displayed. In the latter case you cannot make a new entry or change the values. Activities

    To switch between the individual consumption values and the cumulative consumption values from the past, you use the function Set totals on / Set totals off in the Consumption view in the

    material master of the leading part. (This function does not exist in the Consumption view of non-

    leading parts.)

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