Consumption-Based Planning of Parts in MPN-MRP Sets

Use

This function enables you to perform consumption-based planning of parts in MPN-MRP sets. Consumption-based planning is based on past consumption-values and provides an estimate of future requirements with the help of forecasts or statistical procedures. The future requirement is the result of either a shortfall for a defined reorder point or forecast requirements that the system calculates using past consumption values.

  • Reorder point planning

    In this material requirement planning (MRP) procedure, procurement is triggered when the total of the warehouse stock and the fixed receivables is lower than the reorder point.

    The reorder point and the safety stock are central control parameters in reorder point planning. They can be defined by the MRP controller or calculated by the system. Reorder point planning has two different procedures:

    • Manual reorder point planning

      If you want to use manual reorder point planning, you define the reorder point and safety stock in the material master record.

    • Automatic reorder point planning

      If you want to use automatic reorder point planning, the integrated forecast program determines the reorder point and safety stock. The program determines forecast values for the future requirement by using past consumption values. The program calculates the reorder point and safety stock subject to the service level and replenishment time of the part, which have been determined by the MRP controller. The program copies the reorder point and safety stock to the relevant material master record.

      The program is executed at regular intervals, therefore the reorder point and safety stock are adjusted to the respective consumption and delivery situations. This contributes to stock reduction.

  • Forecast-based planning

    Forecast-based planning is also aligned with material consumption. As in automatic reorder point planning, the integrated forecast program determines forecast values for future requirements. As opposed to reorder point planning, however, in forecast-based planning these forecast values create the requirement quantities for the planning run. Therefore, the forecast values are immediately effective as forecast requirements in requirements planning.

    The system performs forecasting at regular intervals; it forecasts the future requirements based on past data. This is beneficial, because the requirement, which has been determined automatically, is adjusted to the current consumption pattern. Material withdrawals reduce the forecast requirements; therefore, the system does not re-plan the implemented portion of the forecast requirement.

Inventory-Managed Manufacturer Parts

If you use inventory-managed manufacturer parts, the system carries out forecasting for the leading part in the manufacturer part number-material requirement planning (MPN-MRP) set. The system accumulates 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 receipts for all parts in the MPN-MRP set with the reorder point of the leading part.

Features

Forecast of Parts in MPN-MRP Sets

The leading part represents the whole MPN-MRP set and is procured if there is a requirement.

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

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 in an MPN-MRP set are the forecast values of the whole MPN-MRP set.

Total Consumption of MPN-MRP Sets

The Consumption view of the material master for the leading part displays the individual consumption value for the leading part and the cumulative consumption value for all parts in the MPN-MRP set. You cannot enter or change the cumulative consumption value for all parts in the MPN-MRP set.

Activities

To switch between the individual consumption values and the cumulative consumption values from the past, you use Set Totals On / Set Totals Off in the Consumption view of the material master for the leading part . (This function does not exist in the Consumption view for non-leading parts.)