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MRP Suggesting Order for Item With Available Inventory

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Posted on by Daniel Littler

We have an item in our system with available inventory of 7000, it has 3000 qty. on component line across a number of production orders out to the end of the year.

The replenishment and planning parameters are as follows:

Replenishment System: Purchase

Lead Time Calculation: 42D

Reordering Policy: Lot-for-Lot

Include Inventory: Yes

Rescheduling Period: 2M

Minimum Order Quantity: 10

Order Multiple: 10

All other options in these fast tabs are either 0, blank or no.

When running the planning worksheet it is suggesting to create purchase orders for each of the production orders. Can anyone explain why this could be happening as we do not require this stock and the parameters shouldn't be creating a suggestion as far as I can see?

Many thanks in advance!

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Daniel Littler 17 on at

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MRP Suggesting Order for Item With Available Inventory

Hi Shauna,

Here's the screenshots.

Planning worksheet:

Item Card:

Stock Keeping Unit:
Shauna Langley 691 Super User 2024 Season 2 on at

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MRP Suggesting Order for Item With Available Inventory

Hi,

Are you able to send any screenshots of the planning worksheet, item and Stock Keeping Unit?

Thanks,

Shauna
Daniel Littler 17 on at

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MRP Suggesting Order for Item With Available Inventory

Hi Ben and Shauna,

Thanks for the fast responses! The inventory on hand and component lines are both in the same location. I checked manufacturing setup and components at location is blank.

I have also checked the order tracking and untracked qty is 0 for this item. We are not using any forecasts either. It's a bit of a head scratcher as only this item appears to be affected and we have hundreds of ingredients with the same planning parameters.

The item does have an expiration date and the available inventory is set to expire on 7th Dec 2023. Does the planning engine take this in to account and if so, what are the parameters/where are they set?

Many thanks,

Daniel
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Ben Baxter 4,892 Super User 2024 Season 2 on at

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MRP Suggesting Order for Item With Available Inventory

Is the inventory on hand in the Same Location as the Production Order Component Line's Location?

If not, the system will suggest Purchase Orders based on the Lot-for-Lot policy. Since you didn't mention a Lot Accumulation Period, I will assume it is blank, which means 1D or 1-Day. If the Production Orders are on different days, then you would get a suggestion per Day (which happens to be per Production Order).

Check your Locations first, both inventory and Component Lines. Also check your Manufacturing Setup, your "Components at Location" should be blank unless you only have one (1) Location. If you are using only one Location, then you should set it in the Comp. at Location. If you are using multiple Locations, then you should have a Stockkeeping Unit (SKU) setup for each Item that will be planned for each Location. The settings on the SKU card are used for Planning. You don't need a SKU record if the Item is not planned for a specific Location (don't create extra data).

I hope this helps.

P.S. If this information resolved your request, please mark it as a Verified Answer so other forum Users can find the solution quickly.

Best Regards,

Ben Baxter

Accent Software Inc.
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Shauna Langley 691 Super User 2024 Season 2 on at

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MRP Suggesting Order for Item With Available Inventory

Hi,

Do you have any other demand on the system for this item? For example, are you using a forecast when running the planning worksheet? Is this item part of another production BOM that is on sales orders/ sales blanket orders?

You can also look at the order tracking on the planning worksheet for those extra lines created. See below as this might help you to determine where the details are coming from.

Hope that helps,

Shauna