MRP Planing / Default Order Settings / Min. Order Quantity applied to 'Planned Production Orders' & 'Planned Transfer Orders'

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As far as I know the minimum batch size for MRP Planned Production orders is set in Item / Default Order Settings / Inventory / Min. Order Quantity. The issues that I have is that MRP applies this same volume to Planned Transfer Orders.

This significantly affects the MRP in both planning & accuracy as per the following example:

- My actual Minimum Production Batch size is 1000 L (this is what is set in the Default Order Settings)
- My actual Minimum Transfer Order volume is 200 L between Warehouse X & Warehouse Y (I don’t know where to place this setting in the Default Order Settings as I have already used the Min. Order Quantity to set the minimum batch size)
- Stock on hand in Warehouse X is 400 L

If I have a demand in Warehouse Y which is being filled from Warehouse X, MRP will create a Planned Transfer Order of 1000 L as per the Min Order Quantity. As only 400 L is available at Warehouse X, it will then also create a Planned Production Order of 1000 L. This then flows on through to all the raw materials as per the BOM.

The result that I should be getting is a Planned Transfer Order of 200L, simply transferring 200L of the 400L in Warehouse X to Warehouse Y with no additional Planned Production Order.

(If I apply the minimum transfer order quantity to the Min Order Quantity field, it will then be correct for the Planned Transfer Orders but not for the Planned Production Order. I realise that you can set the production volume in the BOM, but this does not flow through when running MRP)

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Community Member on at

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Hi, have you got solution for this requirement? I've similar scenario here!

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Community Member on at

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Hi Krishpra25,

I believe the only way around this is to set up multiple sites and then set the Default Order Settings at a site level (which can be different).

Let me know if you find a better way

regards

Guido

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Weaveriski 23,620 Moderator on at

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It has been on the enhancement list with Microsoft for many years, it is a known system limitation because "Inventory" covers production and transfer orders. Frustrating I am aware, and a common request. Ultimately users that automate the transfer order manually amend, it depends upon volume of each - transfer movement or production. Pick one to manage manually.

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Liese-Marie Heyns 337 on at

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Are the two warehouses at the same site? All I can think of is setting a site specific default order setting?

You will see the default order setting is usually at Rank 0, but you can add a second level. Could you not at the first level have the min order quantity at 1000 L with no default site, and for the Site with Warehouse Y you could set a second level default order setting and set the min order quantity as 200 L.

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