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MRP (Material Requirement Planning) purports to issue Production Orders and Purchase Requests based on demand (Orders/Forecast) .
Sales forecast numbers are supplied by the sales department from customers, purporting to gather information on each customer's buying intentions in a given period. The data, combined to sales history and market evolution data, make it possible to quantify totals to be sold in a given period.
When production demand is high, cyclic and products are popular, the company can keep production ahead of sales and stock up for the market's convenience. This is inventory oriented production.
This production type's advantage is the sale effectively takes place as soon as the customer orders; however, it requires the company to have more floating capital due to production investments for storage. Financial capacity must be compatible with production and inventory levels.
When product sale is not uniform, market demand is lower and unpredictable, and the company cannot risk producing something it does not know when will be sold, so the products are made to order. In this case orders precede production, and planning is done around what is being ordered with regard to each product's characteristics and specifications.
Unlike inventory oriented production and its predetermined sale prices, made to order production normally quantifies prices after appraising what is being ordered through updated cost estimates.
Example:
A vehicle is built for inventory. There is always someone wanting to buy and the dealership quotes its price immediately.
A wardrobe is made to order. It is difficult to find it with the size you want. The price is only set after the supplier becomes aware of its specifications.
A high demand product must have simplified and standardized characteristics and specifications.
If the System is integrated with TOTVS APS (Datasul Solution), resource MRP, as well as Machine Load, are replaced by Auxiliary Software, that is, they are run outside Protheus. Even with the existence of integration, these routines remain active and unaltered. In the event of systems that do not have TOTVS APS integration resource, routines have the same functionality. |
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Procedures
For MRP generation (Material Requirement Planning):
- In MRP, select frequency and configure orders and Log events.
- Press the Parameters button, configure questions and pressOK to start processing.
- At the end, check the results and generate the OCs and SCs by the option OPs / SCs, available in Related Features.
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