Consumption-Based Planning of Parts in MPN-MRP Sets

This documentation covers the details of Consumption-Based Planning of Parts in MPN-MRP Sets

Consumption-Based Planning of Parts in MPN-MRP Sets


Consumption-based planning is based on past consumption-values, and on the forecast or statistical procedures for future  requirements. The future requirement arises either from the shortfall of a determined reorder point or from forecast requirements calculated by the system from past consumption values.


In this MRP procedure, procurement is always triggered when the total from the warehouse stock and the fixed receivals falls short of the reorder point.

The reorder point and the safety stock are central control parameters in reorder point planning. The MRP controller can either determine them manually, or the system can calculate them automatically. Therefore, reorder point planning has two procedures:


You determine the reorder point and safety stock in the material master record.


The integrated forecast program determines the reorder point and safety stock; using the past material consumption values, the program determines the forecast values for the future requirement. The MRP controller determines the service level and replenishment lead time of the part, and the program uses these to calculate the reorder point and the safety stock, and copies them to the respective material master record.

The forecast program is executed at regular intervals, therefore the
reorder point and safety stock adjust themselves to the respective
consumption and delivery situation. This allows a reduction in stock.



Forecast-based planning is also oriented to material consumption. As in automatic reorder point planning, forecast values are calculated for the future requirement by using the integrated forecast program. As opposed to reorder point planning, however, in forecast-based planning these values build the requirement quantities for the planning run. This means that the forecast
values are immediately effective as forecast requirements in requirements planning.

Forecasting is performed at regular intervals and forecasts the future requirements based on past data. This is advantageous, because the automatically calculated requirement is adjusted to the current consumption pattern. The forecast requirements are reduced by material withdrawals so that the implemented portion of the forecast requirements is not replanned.


Inventory-managed manufacturer parts

When using inventory-managed manufacturer parts, the system performs 
Forecasting for the leading part in the MPN-MRP set. To do this, the system cumulates the historical  Consumption Values for all parts in the MPN-MRP set.

In reorder point planning, the system compares the total from the warehouse stock and fixed receivals for all parts in the MPN-MRP set with the reorder point of the leading part.




Forecast of parts in MPN-MRP sets

The leading part represents the whole MPN-MRP set and is procured if the need arises.

To forecast the requirement of the leading part on plant level, it is not sufficient to consider past consumption of that part. The system also has to consider the stock and cumulative historical consumption values of all parts in the MPN-MRP set. (Therefore, the period indicators for all parts in a MPN-MRP set have to agree.)

The system uses the procurement data of the leading part. It considers the service level of the leading part to calculate the safety stock and the reorder point for reorder point planning.

The forecast values (forecast consumption) of the leading part of a MPN-MRP set are the forecast values of the whole MPN-MRP set.


Total consumption of MPN-MRP sets

In the Consumption view of the material master for the leading part,
both the individual consumption value of the leading part and the cumulative consumption value of all parts in the MPN-MRP set are displayed. In the latter case you cannot make a new entry or change the values.



To switch between the individual consumption values and the cumulative consumption values from the past, you use the function
Set totals onSet totals off in the Consumption view in the material master of the leading part. (This function does not exist in the Consumption view of non-leading parts.)

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