The Material Requirements Planning (MRP) module enables you to plan material requirements for a manufacturing or procurement process based on the re-evaluation of existing inventories, demands, and supplies on changing planning parameters (such as lead time determination, make or buy decisions, and holiday planning).
MRP calculates gross requirements for the highest bill of materials (BoM) level, based on existing inventory, sales orders, purchase orders, production orders, forecasts, and so on. It calculates gross requirements at the lowest BOM levels by carrying down net parent demands through the BOM structure. Dependent levels might have their own requirements, based on sales orders and forecasts.
The results of the MRP run are report and recommendations that fulfill gross requirements by taking into consideration the existing inventory levels and existing purchase orders and production orders. The MRP run also takes into account predefined planning rules such as Order Multiple, Order Interval, Minimum Order Quantity, Inventory Level, and so on.
Use the SAP Business One Production module to create and maintain the following:
• Bill of Materials (BOMs) - specifies the quantities of components that make up a product.
• Production Orders - a set of instructions for planning and assembling a production item. It tracks all the material transactions and costs involved in the production process, as well as additional costs, such as labor overhead.
SAP Business One supports the following types of production orders:
• Standard - used for regular production. Components are copied from the item BOM.
• Special - used to produce items or perform activities on the shop floor that are not based on the Standard BOM.
• Disassembly - used to report the disassembly of an item with a production BOM. Components are copied from the item BOM.
A finished product may be the result of an entire production process, or a collection of items that are sold as a unit, but are not the output of a production or assembly process.
Material Requirements Planning (MRP) functionality in SAP Business One allows you to plan your material requirements and maintain an optimum production plan for complex, multilevel production processes. It replaces informal, ad hoc production scheduling with a more structured process using data from various sources across your business to create an accurate picture of your production and supply chain. Sources of data include:
Using the MRP wizard, you can specify timelines, stocks, and even data sources to be considered in planning. SAP Business One then takes this data, assembles it, and creates recommendations regarding your material needs – what you’ll need and how much and when you’ll need it. Once these recommendations are reviewed, the MRP functionality can automatically generate production and purchase orders needed to manufacture a final product in the quantity and time specified by the production schedule, taking into consideration all requirements for product components
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