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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / GP2010 MRP does not se...
Microsoft Dynamics GP (Archived)

GP2010 MRP does not seem to be calculating Order Up To Level

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Posted on by Community Member

I have a make item with the following resource planning parameters.

Order Policy:  Period Order Qty

Fixed Order Qty: 0

Order Point Qty: 10

Order Up To Level: 20

Number of Day: 7

Minimum: 0

Maximum: 0

Multiple: 1

*********************

We have on hand of 8.  When MRP runs it will tell us to make 2 more to reach the Order Point Qty.  It does not tell us to make 12.  If the qty is 10 (which is the order point qty) it does not tell us to make anything. 

Am I doing something wrong, or is this a bug with GP2010?

 

Thanks

 

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  • Suggested answer
    Bron Profile Picture
    Bron 4 on at

    The Order up to level does not work as you are expecting it to. It's sort of complicated - Order Up to Level is a level of inventory that you determine MRP should consider when making it's suggestions.

    MRP calculates Projected Available Balance for each item/site combination for each day. It uses the Order Up to Level to alter MRP suggestions and try to maintain the Projected Available Balance Below the Order Up to Level.

    In your scenario - if you had a Manufacturing Order Scheduled with a receipt qty = 20. Then when that MO receipt is scheduled to be put into inventory - your Projected Available Balance would be '8 + 20 = 28. 28 is over the 'Order Up to Level of '20' which will result in MRP kicking out an exception message that the item is 'oversupplied'.

    In a nutshell, Order up to level is considered 'targeted level of inventory' and MRP will compare the Projected Available Balance to it during regeneration and adjust accordingly.

    I have some clients who simply peg the number real high and thus when MRP runs PAB is never close and MRP is in essence disregarding the number.

    MRP has never used the order up to level to suggest additional supply as you seem to expect. I hope this helps.......

  • Community Member Profile Picture
    Community Member on at

    this is what Microsoft support gave me.  Please note the formula.  Order Point Quantity+ one of the parameters + A BUFFER QUANTITY.  According to this formula and using my scenario above, it should be telling me to make 12 widgets.  It is not calculating that buffer quantity at all though.

    The response also says "Your internal order policies determine the appropriate quantity to use for the Order-Up-To Level field."  To me that says that there is possibly a setting that I am missing.  

    MS Response

    "Your internal order policies determine the appropriate quantity to use for the Order-Up-To Level field. However, the Order-Up-To Level quantity should be as large as the total that is defined by the following formula:

    Total = the Order Point quantity + ( the larger quantity: A or B or C or D ) + a buffer quantity

    The following table describes the variables in the formula:

    Variable The value which the variable represents

    A The Period Order quantity

    B The quantity in the Minimum field in the Item Resource Planning Maintenance window

    C The quantity in the Economic Order field in the Item Vendors Maintenance window

    If you are using Move Out and Cancel suggestions MRP reads the Order Point Quantity and the Order-Up-To Level to determine how much should be onhand so you are not oversupplied.

    If an oversupply exists at an item/site combination, the new suggestions for moving out and for canceling manufacturing orders and purchase orders are triggered. To determine whether an oversupply situation exists, MRP compares the Projected Available Balance (PAB) value to the Order-Up-To Level value. If the PAB value is larger than the Order-Up-To Level value, the item/site record has an oversupply. Therefore, the suggestions are triggered to either Move Out or Cancel a pending PO.

    Example:

    - 2,000 On hand

    - Order-Up-To Level = 1,500

    - Saved PO for 1,000

    In this situation you are oversupplied. If you are using Move Out or Cancel suggestions MRP would either suggest to Move Out the Saved PO to a later date when the On Hand quantity dips below the Order-Up-To Level or Cancel the PO."

  • Suggested answer
    Bron Profile Picture
    Bron 4 on at

    Regarding MBS 'your internal order policy' comment - MBS is referring to MRP order policy (Lot for Lot - Fixed Order Quanitity - Period Order Policy etc).

    In your scenario - if you removed the Order Point Qty of 10 - would you seriously expect MRP to suggest replenishment of 20?

    I don't intrepret MBS commentary to state MRP will suggest replenishment in your scenario. I am certified by both APICS and MBS for manufacturing and can state that MRP has never worked the way you are expecting.

    The key paragraph -

    If an oversupply exists at an item/site combination, the new suggestions for moving out and for canceling manufacturing orders and purchase orders are triggered. To determine whether an oversupply situation exists, MRP compares the Projected Available Balance (PAB) value to the Order-Up-To Level value. If the PAB value is larger than the Order-Up-To Level value, the item/site record has an oversupply. Therefore, the suggestions are triggered to either Move Out or Cancel a pending PO.

    In conclusion - MRP will use Order Up to Level in an attempt to minimize/monitor PAB - it is never used to replenish.

    Hope this helps -

  • Community Member Profile Picture
    Community Member on at

    2nd level support informed me that several companies have complained about the lack of a Min and Max system.  He stated that the developers designed MRP to run on the lean side and that 'They do not care how other MRP systems are designed'.  That's not how we operate and it's not how lots of companies operate.  It's more efficient for us to build a large amount of product because it becomes cheaper.  That's why we use a Min/Max stock.

  • Suggested answer
    Bron Profile Picture
    Bron 4 on at

    I hope your implementation continues and this issue doesn't stop you from fully implementing and using MRP.

    I've done lots of MRP implementations and usually multiple custom reports are used to 'tweak' information so end users can make intelligent supply/demand decisions and maintain high levels of internal and external customer satisfaction.

    I do agree the system could be more flexible and I wish MBS would dedicate more resources to enhancing it's functionality.

    You should post a product suggestion.

    Good Luck -

  • quattr0 Profile Picture
    quattr0 185 on at

    I understand this post is a few years old.

    What we ended up doing is to use PO Generator for Bought items and GP will suggest us to buy Order Up To Level qty if we set the PO Generator to run off this quantity.  So if I have 5 on-hand, 8 is Order Point Qty and 10 is Order Up To Level, GP will suggest to purchase 5, not 3.

    I know this might be obvious for some of you but it might not be in case someone is trying to look for a solution to use Order Up To Level.

  • Suggested answer
    Richard Whaley Profile Picture
    Richard Whaley 25,195 on at

    Order up to level is used by the Recommended Reorder Point report but ignored by MRP.  DUMB but that's the way it works.  Set the order point where you want it and the minimum order quantity to enough to add to the Order Point to give you close to the desired order up to level.  This works in 98% of the situations.

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