Consumption-Based Planning of Parts in MPN-MRP Sets�
Use
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:
- Manual reorder point planning
You determine the reorder point and safety stock in the material master
record.
- Automatic reorder point planning
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.
Features
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.
Activities
To switch between the individual consumption values and the cumulative
consumption values from the past, you use the function 
Set totals on /
Set 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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