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How to decide the criticality in MRP element based on receipt days supply

Former Member
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Hi Experts,

I would like to know how to decide the criticality of MRP elements for a material based on the receipt days supply. To elaborate, for a material, system calculates the receipt days supply as 10 days. But what should be the basis to decide whether this is crtical or not so that I can define trafic lights?

Thanks & Regards

Prathib

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Answers (1)

Answers (1)

Former Member
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Prathid,

I would like to know how to decide the criticality of MRP elements for a material based on the receipt days supply

??? That depends upon you mean by 'decide criticality'.

Where do you want to define these 'traffic lights'? What do you intend to do with the traffic lights, once they are created?

When I was a planner, I usually was faced with about 1000 exception messages every MRP run (daily). I had time to review and address about 30 per day. For me, it was important which 30 got looked at. I would use MD06 to define the most important issues for me.

Best Regards,

DB49

Former Member
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Hi DB,

Thanks a lot for your inputs. I think you can provide some input on the evaluation of MRP run result.

The scenario is like this. In my depot, materials are planned based on reorder point and replenished from production plant. So always the planner should look at the available stock and the receipts to meet the requirements. If there is a short fall then planner can take action like requesting material from other depot or postponing the delivery date of sales order.

So the factor the planner can see is the receipt days supply. I can define the red trafic light in MD06 if the receipt days supply falls below a value. But how to decide this threshold value. What was the approach used when you were planner?.

One more thing. What were the exception messages that your were considering as important and planner should immediately act on.

Anticipating your valued inputs.

Regards

Prathib

Former Member
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Prathib,

As long as your reorder points are set properly, and the parts are actually suitable for Reorder Point planning, I don't see how days of supply is even applicable in the scenario you have described. Sounds to me like all you should be doing is just evaluating shortages. A planner should seldom have to review stock and expected receipts, that is what the planning run does. A planner just reviews exceptions.

If you are implying that you need to change the Reorder points frequently, you should consider implementing automatic reorder point planning for the materials that are giving you the worst heartburn. Or, consider planning with MRP rather than consumption.

Best Regards,

DB49