This is more than an academic exercise -- understanding this overall context for planning can greatly help the reader to design and carry out the planning process in almost planning application. One of the most common sets of activities in the management is planning. Very simply put, planning is setting the direction for something -- some system -- and then working to ensure the system follows that direction. Systems have inputs, processes, outputs and outcomes.
The objective is to explain the concept of MRP and how an organisation can use this feature to optimise the inventory.
From there we will show the MRP feature within the SAP Business One platform, showing the configuration and workflow to run it successfully within the application.
Well, MRP is a tool for organizations to effectively manage their inventory. Inventory can be a challenge for an organization, so MRP can assist with this challenge by consolidating all the variables and conditions around inventory into one workflow.
Demand; Our existing inventory position — item quantity. Demand is any type of document in the system that puts a commitment on inventory. So, some examples we have here are sales order. So, if you have safety levels or minimum and maximum stock levels, MRP will consider all these as demand on inventory to then produce a recommendation.
The next step is supply. So, these are obviously the entries or the documents that offset that demand that already exists in the system. So, we have some examples here of purchase orders. The last factor is item quantity and that is your existing stock position or stock on hand.
MRP will look at that and then consider the supply and demand, and then do the calculation and produce, as a result, a recommendation. Now, what is a recommendation? Well, a recommendation is either a buy document, which would be a purchase order, a produce document, which will be a production order, or a transfer.
So, how do I access MRP? The first one is Forecast. So, one way is to enter the forecast manually, which I can do by simply going to the item catalogue and selecting an item. I then define the warehouse that I want this forecast for and then I enter the quantities that I need for those periods.
Another way is to enter it via a spreadsheet. So, if you set up a spreadsheet that mimics or replicates this grid structure, you can do a copy and paste and it will populate the forecast.
Another means of generating the forecast is the options down the bottom right here of either a basic forecast or an intelligent forecast.
Now, basic forecast allows you to take a period in the past using historical sales to then populate this same grid in a very straightforward method.
So, when I open up this, it gives me this option here and this screen here, and then from the top of the screen, I can define which products I want to forecast against.
So, I have options to select by item, preferred vendor, or the default warehouse, the item range I would like to define, or by item group, which I want to use.Boeing can offer you business challenges on a scale that few companies can match.
Nearly 75 percent of all airplanes in the sky right now were made by Boeing, and every day we export more than $53 million worth of goods and services. Pages in this category should be moved to subcategories where applicable.
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Aug 27, · Business planning is the process of creating goals for a company and strategies to meet those goals. Good business planning must.
Download these Business Process Design templates (MS Word, Excel + Visio) to capture the procedures that govern how your business works from technical and operational levels.
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