In this publication we demonstrate how to get the most benefit from the proper interpretation and use of Datup's Optimised Materials Resource Planning - MRP.
The solution facilitates the automated management of manufacturing processes considering large portfolios of finished products, which in turn, link multiple raw materials with their shares(Bills Of Materials - BOM) in their production. The solution takes care of material explosion and guides production planning, taking into account demand planning and optimised inventories in a unified supply chain.
These use cases allow the analyst to know dynamically the information consolidated in the results cubes, supporting decision making with respect to the required supply or production quantities of each raw material to guarantee its availability and at the same time avoid excess inventories with their associated cost overruns.
Optimised Materials Explosion Use Cases
The use case guides better decision making for:
To know the materials and associated quantities in the unit production of finished products with units of measure and dispatch.
Determine the materials and quantities required in the production of each finished product for the current and future period.
The use case guides better decision making for:
The column Ctd Prod Requerida Material Prox calculates for each material the required quantity of supply or production for the next period, including future demand and the current availability of the parent product in the different distribution centres: Ctd Prod Sugerida Padre Prox.
Optimised material explosion makes it easier to keep track of current required volumes Ctd Prod Requerida Material and future Ctd Prod Requerida Material Prox of materials Item Hijo per parent product Item Padredistribution centre CeDi and channel Canal. The calculation of the quantities required is derived from the stocks on hand Inventarioorders in transit Tránsito and collaborative demand forecasting Pronóstico Colab.
1 Ctd Prod Requerida Material = (Ctd Prod Sugerida Padre * Ctd Requerida) / Ctd Despacho
2Ctd Prod Requerida Material Prox = (Ctd Prod Sugerida Padre Prox * Ctd Requerida) / Ctd Despacho The required amount of current production Ctd Prod Requerida Material and future Ctd Prod Requerida Material Prox can take negative values, preceded by a minus sign ( - ), indicating that the available and incoming stocks of the parent product are not sufficient to meet the projected demand and maintain the safety stock. Therefore, the negative value calculated corresponds to the quantities to be supplied or produced, including the dispatch quantity. Ctd Despacho. For example, the liquid egg has a dispatch quantity of 5 kg.
If, on the other hand, the reorder quantity shows a positive value, it indicates that the stock on hand and in transit is sufficient to cope with future demand and to cover the safety stock. However, it is important to compare the value of the Ctd Prod Requerida Material Prox with the reorder point Pto Reorden to know when replenishment should be carried out, since due to the frequency of product consumption and delivery lead times, it is possible to face an inventory break. In this way, if the required quantity Ctd Prod Requerida Material Prox is less than the reorder point Pto ReordenThe production or supply order must happen immediately. If Ctd Prod Requerida Material Prox is greater than the reorder point Pto ReordenIf the values are very close or equal, it is possible to wait until the values are very close or equal to generate orders. Otherwise, there is a risk of over-supplying.
MRP Optimised Use Case
The use case guides better decision making for:
Integrated inventory management of materials considering total stock, transits and availability for each distribution centre.
Determine required quantities and consolidations in the production or procurement of materials.
The column Ctd Producción Sugerida consolidates for each material the required quantity of supply or production, including the current availability and future demand for the material for each distribution centre CeDi.
Optimised MRP makes it easier to keep track of required volumes Ctd Producción Sugerida of materials Materialon the basis of available stocks Inventarioorders in transit Tránsito and consumption forecasts Ctd Prod Requerida Material Prox.
1Ctd Producción Sugerida = Inventario + Transito - (Ctd Prod Sugerida Padre Prox * Ctd Requerida) / Ctd DespachoThe required amount of production Ctd Producción Sugerida can take negative values, preceded by a minus sign ( - ), indicating that the available and arriving stocks of the material are not sufficient to meet the projected demand and maintain the safety stock. Therefore, the negative value calculated corresponds to the quantities to be supplied or produced, including the dispatch quantity. Ctd Despacho. For example, the liquid egg has a dispatch quantity of 5 kg. If, on the other hand, the reorder quantity shows a positive value, it indicates that the stock on hand and in transit is sufficient to cope with future demand and cover the safety stock.