Material Requirements Planning (MRP)
SAP Business One offers a simple yet powerful planning system that helps production planners or buyers schedule and manage items for production or purchasing based on a variety of criteria.
Forecasting and Planning
Forecasts allow users to predict demand based on potential future requirements, instead of relying solely on received orders. Forecast calculations help users foresee future demand for the product and adjust material planning accordingly. These demand forecasts can be used in the MRP wizard.
The MRP planning wizard takes users through the process of creating planning scenarios in five easy steps. Users define the planning horizon, which can be viewed in weeks or days. They can also opt to exclude non-working days from the production and purchase planning.
Scenarios can be run for a range of items or item groups. The user selects the desired criteria in the scenario, such as existing stock levels, open purchase orders, sales orders, work orders, and stock that has reached its minimum level, as well as pre-defined sales forecasts.
Once a scenario is executed, the solution presents a recommendation to ‘make’ or ‘buy’ items in a recommendation report. Drill-down options are available to allow planners to view the net requirement calculations and view the actual documents driving the gross requirements. Exception warnings and visual queries are also available. These help users identify orders that need to be expedited.
From the recommendation report, planners can automatically select recommended production orders and purchase orders for automatic creation. If an item needs to be outsourced, the system allows planners to easily convert a production order to a purchase order. Purchase orders to the same supplier can be optionally consolidated into one order, streamlining the purchasing process.
“We used to have disparate and siloed systems, but today, thanks to SAP Business One, we have end-to-end visibility of products from order entry through manufacturing, fitting, alterations, and on to delivery.”
Chief Operating Officer, Trulife