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Balancing MRP Suggestions with Realistic Production Schedules in Business Central

Jun Wang Profile Picture Jun Wang 4,053 Super User

 

Balancing MRP Suggestions with Realistic Production Schedules in Business Central

Introduction
Material Requirements Planning (MRP) in Microsoft Dynamics 365 Business Central is pivotal for manufacturing operations, ensuring that materials are available for production and products are available for delivery to customers. However, when MRP suggests immediate production upon hitting the Reorder Point (ROP), it can disrupt planned operations, especially if the manufacturing setup cannot realistically support such rapid turnaround. Let's explore how businesses can adjust their system settings to balance MRP suggestions with realistic production schedules.

The Core Issue
In Dynamics 365 Business Central, MRP functions differently for manufactured items compared to purchased items. For manufactured parts with a Fixed Reorder Quantity (FRQ) policy, MRP often defaults to immediate production once the ROP is hit. This issue stems from how the routing setups are configured, implying that replenishment through manufacturing can be completed very quickly—sometimes in just a few minutes or hours.

Challenges with Immediate Production Suggestions
Such immediate suggestions can be problematic:

  • Resource Allocation: Facilities might not always have the capacity to handle sudden spikes in production demands.
  • Operational Disruption: Constant adjustments to meet MRP suggestions can lead to operational inefficiencies and increased manual intervention.
  • Inventory Management: Excessive focus on immediate production might lead to higher inventory costs or resource wastage.

Strategies to Refine MRP Settings
Here are some strategic adjustments that can help align MRP suggestions with practical production capabilities:

  1. Extending the "Calc. Regen. Plan's" Ending Date
    By extending the timeframe over which the MRP calculates its needs, businesses can provide a buffer that allows for advanced planning, thus avoiding the rush to produce immediately upon hitting the ROP.

  2. Adjusting Routing Times and Safety Leads
    Ensure the routing configurations reflect realistic lead times for production. If your routing suggests a two-week lead time, but your planning parameters only look one week ahead, you’ll consistently receive urgent production prompts. Align these to avoid miscommunications between planned and actual lead times.

  3. Modify Routing to Reflect Actual Lead Times
    Instead of eliminating routing details, adjusting them to more accurately reflect the time needed to complete production can help MRP schedule more appropriately. This means setting up routing times that provide a true picture of production duration, thereby informing MRP to trigger production plans that are more in sync with reality.

Conclusion
Balancing MRP suggestions with realistic production schedules in Business Central requires a careful review of both routing settings and MRP parameters. By making thoughtful adjustments to these areas, manufacturers can enhance operational efficiency, reduce unnecessary manual scheduling efforts, and better align production activities with actual business needs. These changes should ideally be implemented in consultation with Dynamics 365 experts and IT teams to ensure they integrate smoothly with other business processes.

For businesses looking to refine their MRP systems, it's crucial to consider not just the technological adjustments but also the broader impact on their manufacturing operations and supply chain logistics. With the right settings, Business Central can be a powerful tool for maintaining efficient, responsive, and cost-effective manufacturing operations.

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