Material Resource Planning
Posted Thursday, August 25, 2011 by Peter Kelly
For those of us in manufacturing, a common term is Material Requirements Planning or MRP. With Microsoft Dynamics GP, MRP enables the Production Managers and Buyers to have visibility on when made items and purchased items are needed to meet Sales and/or Manufacturing demands.
A few of the useful pieces of information include:
- Gross Requirements – how many units of a specific item are needed in a specific timeframe.
- Scheduled Receipts – how many units of a specific item have been confirmed and are a firm order.
- Net Requirements is what MRP looks at when planning
MRP provides you with manufacturing and purchasing SUGGESTIONS. You still have control as to what you manufacture and purchase. MRP says “I see the need to produce this item on these dates based on orders in the system” leaving you in control, with information at your fingertips to make the most educated decision.
As the Buyer and/or Production Manager you can then create Purchase Orders or Manufacturing Orders from within MRP based upon the suggested quantity. Plus, all of this information is date driven so you can easily look at supplies and demands by Days, Weeks, or Months.
MRP Consulting is available for a 1-day onsite visit in which we will map out your current processes and measure them again your current systems. Sometimes a “tune-up” is all that is needed to keep your business running as it should. We can all agree that having the right software will not only improve internal processes and productivity, but will also improve customer relationships. It’s just that simple.
Give us a call today.