Steps how to run MPS & MRP in Dynamics NAV?

Introduction:

Hey Readers, Hope you are well

In my previous blog I had explained MPS and MRP.  If you haven’t got a chance to view it please click  here 

Pre-requisites:

Microsoft Dynamics NAV 2018

Steps:

1. Manufacturing Setup: Check your manufacturing setup in NAV. If you want to run MPS and MRP together please enable the combined MPS/MRP Calculations.

2. Item Card: In my blog I’m using an Item KK2Q. Check the Item card Replenishment setup for the Item KK2Q.

Here, KK2Q is a Finished good and Replenishment is Production order that means we manufacture this product.

3. If we open the structure on Item card, we can check the components consumed to produce KK2Q.

Open Item card an click on navigate and click on structure

• According to the replenishment system, we know to create 1 KK2Q we’ll need to produce K2790A (Work centre is  Transfer as K2790A is Produced in a different site and transferred to my current site) and purchase few other items.
• Also, check for Inventory for Item KK2Q. Current Inventory is 335

3.Production forecast: Open Production forecast and if you filter the forecast by week and by Item KK2Q.

Here, the forecast is 1000 for the next 4 weeks.

4. Planning Worksheet: Planning Worksheet helps us understand how much we need to produce or purchase based on the forecast and demand.

• Search for planning worksheet in NAV and click on Calculate Regenerative Plan
• This process starts by deleting all planned supply orders that are currently loaded. All items in the database are re-planned.

• Please make sure MPS and MRP are checked.
• In this example, I’m running the planning worksheet for the month of June hence, the start date is 01/06/20 and Ending date is 30/06/20.
• The forecast used is EDI forecast and we are excluding forecast before 31 March 2020
• Also, under Items we have filtered KK2Q, the components K2790A and W71 and click on OK

Once all filters are applied. Click on OK.

The lines with Ref. Order Type as Prod. Order is our production orders due to MPS and the once with Purchase and Transfer are our MRP

MPS : The first line has quantity 665 even though the production forecast says 1000 cause we have 335 in stock. Next lines for MPS is 1000 as per the forecast

MRP:

• Now for Item K2790A, we have 245 quantity recommended to be transferred by a transfer order.
• This is because we have stock in inventory to be consumed for 08/06 and 15/06 and remaining quantity to fulfil the demand on 22/06 is displayed on the planning worksheet.
• Transfer order is recommended as we do not manufacture this part at our site but we transfer it from another warehouse site.
• For Item W717, quantity displayed is recommended to be purchased according to the FG quantity

Once the data is loaded, we check the Accept action message (Please refer image above marked in green) and then click on Carry out Action message. A page will open as below. Enter your desired result and click on OK.

• The worksheet lines checked as accepted and Replenishment system as Prod. Order, Purchase, transfer are converted to Firm Planned Production order, Purchase order and Transfer order respectively
• Please note: All worksheet lines checked for Accept action message are converted.

Conclusion:

• MPS and MRP gives the company a platform for supply planning to calculate how many production orders and purchase orders to execute to fulfil that week’s sales demand.

Thanks for reading!