We have agreements with some suppliers where we establish an estimated annual volume that we commit to. Then each week we use MRP to inform us of how many we want delivered based on actual demand. Currently, we issue a PO for the annual volume that is due 12/31 of the current year and simply receive against that line as we have the product arrive.
We use a lot of custom parts so suppliers are looking to ensure we have an obligation to buy the inventory they stock on our behalf but are OK with having time-phased deliveries usually a week out based on our needs.
This causes planning issues because get Advance notices to pull in the large value and can't effectively use MRP to plan our releases.
Can somebody explain if they follow a similar process using agreements or blanket orders and how they see recommendations come across in MRP?
