on 09-24-2008 6:42 AM
What is use of Procurement type u2018Xu2019 in MRP2 screen, & how system plans if we enter this key and how it is affected or related
with MRP?
Hi,
Procurement Type: X (Both procurement types)..
If you maintain this, then system by default will take the inhouse production..
Aftr maiuntaining X, you need to maintain the Quaota arrangement (MEQ1) also, in this you can specify how much % is from inhouse and how much from Extrnal procurement..
Then only sytem will consider Both procurement types..
Regards,
Siva
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Hi Niranjan,
Procurement type "X" is used when the material can be produced in house as well as procured form outside source.
The system allows you to create production/process orders as well as the purchase order for this material. This come to use when you have to take a make or buy decision based on the economic quantity for inhouse production.
Also, cases where production capacity is limited and the demand is more you could go in for external procurement. Such materials need to have the flexibility of both inhoude production and external procurement.
Hope this answers your question.
Regards,
Pradeep.
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Hi,
This key defines that the material can be produced from Inhouse or procurred from external.
Some scenarios the material produced inhouse as well as external. If the production lead time is much higher than the required date, the material procured from external.
After MRP run system will create planned order for that material. You can convert into production order or purchase requisition.
Regards,
Dharma
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