Hi All,
I have a client using Business Central and we are trying to set up their planning parameters for MRP. This is the scenario:
One of their items, which is a component on a production BoM has a 52W lead time. They want to create a PO each month for their average consumption to receive each month as the next month comes around. Let us say they consume around 2000 of this item per month, so we set the reorder point to 2000, with a order qty of 2000. We have 1900 on hand, so we run the planning worksheet and it creates a PO for 2000 for next year October due to the 52W lead time. Now we have a PO out there that will put them above the re-order point. We now want to create another PO for November for 2000 to arrive in November 2023, but the system doesn't plan again as the PO set out there for 12 months tells us there is enough.
They don't have forward demand for the item, as they create production orders today and not into the future.
How would we let the system know we need to create a PO each month for the minimum qty into the future. Basically, there will be 11 PO's for this item, as they would have created them last October to arrive this October, and then Last November to arrive this November and so on.
We are slightly lost and confused. They have the item set to 'Fixed reorder Qty'.
Thanks in advance
Hi
Using fixed reorder qty means that we plan according to stock level. If your stock level is always the same here (no sales for example planned), then it makes sense to get no replenishment proposed.
So you need to set some demand to tell the planning that your stock could be below reorder point. Maybe to add forecast demand per month and then system will plan:
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