Sage 100 Material Requirements Planning

Warehouse Groups allows you to define one or more groups that are used by the MRP Generation process to consolidate recommendations for material acquisitions. For reporting purposes, information is also segregated by Warehouse Groups.

The MRP module provides entry for monthly and weekly sales projections by warehouse for each manufactured item and monthly and weekly sales projections by customer. You can use these projections, along with existing sales orders, to obtain information from the MRP report when purchasing raw material. The Projected Demands report shows actual sales versus projected sales for analytical purposes.

The MRP Generation process looks at demand based on open sales orders, sales projections, and work order component requirements and supply based on inventory stock levels, open purchase orders, and existing work orders. Product build times, lead times, and supply and demand functions are combined to estimate the need for an inventory item.

If you have the Work Order module installed, the Auto Generate Work Orders program uses information from MRP Generation to create or modify work orders for items that have a procurement type of “make.”

This report groups by vendor all actions that have been recommended by the MRP Generation process. This enables you to have all of the information you need on a one-phone-call-per-vendor listing.

The MRP by Job Report details upcoming requirements for components on a bill of materials by job (for example, Sales Order or Work Order). For each component, you can view the quantities needed, the projected on-hand quantities, and required dates.

MRP integration with the Inventory Management module is required to access the items needed to distribute or produce finished goods. The on-hand quantities in inventory are recognized as a part of the supply of an item during MRP Generation. The inventory integration supplies all reorder information, vendor lead times, and product build times to MRP Generation.

When Purchase Order is integrated with MRP, the material on a purchase order is recognized as a part of the supply of an item during MRP Generation. Items on a purchase order compose the basis of the Action by Vendor Report.

When Sales Order is integrated with MRP, the material on a sales order is recognized as part of the demand for an item during MRP Generation.

When the Bill of Materials module is integrated with MRP, it supplies the detailed database of components, assemblies, and subassemblies for calculating finished goods versus raw materials. MRP Generation can disassemble all finished goods to their lowest levels to calculate the various time-phased operations needed, and give the necessary material requirement information.

Integration with Work Order is optional but is required to automatically update work orders through the MRP process. The Auto Generate Work Orders program places or changes firm-planned work orders for items. The essence of the Work Order and MRP interaction is to improve the work order timing, taking into account the material consumed and produced by the work order to facilitate greater insight and control over the entire shop floor.

MRP offers value to distributors as well as manufacturers. In fact, any company using the Sage 100 ERP Inventory Management and Purchase Order modules can leverage MRP to manage the purchasing side of their business.