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Material Requirements Planning (MRP) Functionalities

Material Requirements Planning (MRP) Functionalities

A successful company must have the ability to control the supply chain and the production process. After all, making a mistake in the numbers could prevent you from being able to provide your clients or cause you to lose money on surplus inventory and the costs associated with holding or disposing of it.

By assuming this crucial logistical function, material requirements planning (MRP) makes sure you can satisfy continuing demand without incurring extra costs for inventories, experiencing production bottlenecks, or discovering you can't get the required supplies.

Built for the needs of a single site as an well as extended enterprise, MRP offers cross-plant and cross-company planning. Enhanced to offer plant source as well as product group sourcing of materials and assemblies, MRP automatically and visually extends the enterprise to efficiently manage supply and demand, from forecasting and MPS to MRP generation, and more. Material Requirements Planning functionality includes:

MRP Generations

Run MRP with either net change or full MRP regeneration options. The MRP generation process balances the demand of customer orders and forecasts with the supply of jobs. As orders and forecasts change, MRP automatically adjusts corresponding jobs so you are in balance. MRP even reschedules by your plant or part for you.

Material Planning

Create purchase order suggestions for inventory and purchased parts that are needed to complete production. Use lead times and vendor price breaks to determine when the part should be ordered and at what price.

Planning Contracts

There are instances where parts need to be manufactured or purchased to satisfy a future requirement for a product or job that has yet to be fully developed from an engineering standpoint or there are long lead items that need to be purchased or built before the upper level orders are ready to be released. The Planning Contract gives you the ability to manage long lead-time items before a trigger appears for demand. Best of all, it allows you to earmark these items for specific needs even if a Job or Sales Order has not been generated yet. The planning contract concept is used specifically in a situation where the supply generated to fulfil a contract is consumed by the actual demand linked to the same part in the same planning contract. Supply for contract materials is kept distinct from other general supply. The Multi-Level Pegging Process pegs demand and supply, if they are linked to the same planning contract. Link Planning Contracts to demand and supply. The demand you link to a planning contract is filled by the supply you link to the same planning contract. As a result, the demand is fulfilled specifically from the assigned contract warehouse/bin locations, and excludes other non-planning contract warehouses/bins from the fulfilment process. You can link a planning contract to a job, project, purchase order, sales order, transfer order, or quote.

Dynamic Lead-Times

Take into consideration variables such as the batch size, production calendar for a resource, the run rate of the resource utilized, and the availability of material flagged as constrained in production schedules.

Part Planning Tools

Account for production prep, kit, and receipt time. Use this to derive cycle-times and appropriate lead-time for producing the product.

Plan as Assembly

Use Plan as Assembly to plan lower component manufacturing parts without the need to include them in the full assembly structure. This feature enables complex planning for multilevel complex parts with components that are typically stocked.

Planning Horizon

Review the planning horizon of a part or resource, then plan up to, but not beyond the horizon, preventing premature planning.

Auto Job Firm Process

Use predefined rules to firm up and move MRP production requirements to production planning automatically, for rapid response to current demand.


Run MRP for all plants or for individual plants within a company. Changed schedule dates roll down to all subcomponents—even those being manufactured in another plant.

Multilevel Pegging

Analyze all the supply and demand in your system, then peg each supply against demand, prioritized by due date. Because supply is calculated for every inventory item from all possible sources—regardless of whether demand exists—you are alerted to items that may be overstocked or obsolete.

Sourcing By Site

Define a unique source per part or site— whether its default sourcing is purchased, produced, or transferred. What is produced in one location may be purchased—or transferred in—from another.


View running balances with the available- to-promise function. Enter a quantity, and the system will find the earliest date that quantity will be available. Enter a date, and see how many parts are available on that day. MPS, forecast, order, and planned receipt quantities are visible to help you in your production planning tasks

Planning Type

Maximize your planning accuracy with multiple types of inventory planning, including minimum/maximum/multiple, days of supply and run out.

Rough Cut Horizon

Enable MRP to process more efficiently by removing the time spent scheduling beyond a specified threshold or rough cut horizon.

Recycle Jobs

MRP reuses un-firm jobs for optimum MRP performance.

Short Horizon Days of Supply

To optimize MRP performance, a Short Horizon Days of Supply field is included within the Part Maintenance program on the Plant Detail sheet. This field defines a material value that will be used when MRP determines that the needed materials falls within the Short Horizon.

Sourcing By Site Calculate Manufacturing Lead Time

Plan for part components lower down in the assembly structure for accurate MRP scheduling.

Start Minimum Quantity

Account for partial material availability in MRP calculations to get started earlier with available material and improve delivery performance.

Bill of Materials Check

MRP checks the revision level and verifies approvals before pulling in a standard BOM and routing. For parts that do not have a current approved revision, a job suggestion is created in the new/change order queue to help ensure requirements are not lost.

With the aforementioned features, MRP systems let your companies execute just-in-time (JIT) production, scheduling production in accordance with the availability of materials. As inventory is not kept in the warehouse for upcoming production but rather is delivered as needed, this reduces inventory levels and carrying costs.

Want to know more how to eliminates manual processes across the production process within the organisation?

Contact Finsoft for more information and let us be your trusted digital transformation partner!


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