Welcome to the Exact Product Blog

On this blog we will cover stories from all around the Exact ecosystem.

Material Requirements Planning (MRP) for Exact Online Manufacturing

Written by Pieter Hamans on . Posted in Exact Online


The purpose of Material Requirements Planning (MRP) is the generation of time phased planned purchase orders and shop orders. In other words, we want to purchase in time, but like to avoid at the same time to consolidate multiple purchase requirements into inventories not yet needed. The formal manufacturing planning and control concept will be the core of Exact Online Manufacturing Premium. The first phase of MRP goes this month into controlled release.

The formal Manufacturing Planning and Control concept

Once Exact Online Manufacturing Premium is completed, it will comprise of the following components:


(Click to enlarge)


Material Requirements Planning will be released in two phases. In this first phase it will become possible to create time phased purchase orders for material requirements of shop orders. Of course the materials that are directly required in sales orders, sales forecasts, warehouse transfers or assembly orders will be included too. The restrictions are therefore:

  1. No material requirements that are indirectly required to fulfill sales orders or sales forecasts: bills of materials are not exploded.
  2. No time phased shop orders for components: bills of materials are not exploded.

This first phase of MRP does work for multi-layered shop orders (suborders), but not for shop orders that are not yet generated!


An example:

We have two shop orders for fuel pumps, one shop order for 20 each in week 7, and one shop order for 25 each in week 9. The MRP Detail for the fuel pumps looks as follows:


(Click to enlarge)


From the MRP Overview we press Calculate MRP. Once the calculation is finished, the message MRP calculation is done is displayed:



(Click to enlarge)


The MRP Overview shows the projected available balance of the fuel pumps (row 1) and the required materials (rows 2, 3, 5, and 6). The number in the left upper corner of the cell is the planned purchase quantity:



(Click to enlarge)

By looking at the MRP Detail of a material we see how this planned purchase quantity has been derived. We require 60 square meter stainless steel sheet in week 5. The lead time is three days, so the requirement is to purchase 70 square meter in week 4. Why 70? Because there is a safety stock defined of 10 square meter. This needs replenishment since current inventory is zero. In week 7 we require 75 square meter stainless steel. The planned order is for week 6 for 75 square meter as the safety stock replenishment is already catered for.



(Click to enlarge)

From the Overview we can generate purchase order advice. Perhaps there are planned purchases that we do not want to release yet. No problem, as we can release at a later date. We can then also recalculate the MRP, taking changed orders into consideration, and purchase for the then necessary requirements.



(Click to enlarge)

The first phase of Material Requirements Planning will become available for controlled release in February 2016. Interested customers may contact Pieter Hamans (pieter.hamans@exact.com).

Leave a comment