Recommendation and Theoretical Recommendation in MRP
I am running an MRP simulation on a scenario where the only data source is minimum inventory level:
- In 1 particular item;
- Minimum Inventory level is 1,000,
- Qty on hand is 533,
- Minimum order quantity is 0,
- Therefore the Order quantity should be 467, right? (533 + 467 = 1000 = minimum inventory level).
- However, MRP suggests:
- Supply - Production Order of 7,467 with remarks 'Supply from Theoretical Recommendation', and an
- Demand - MRP requirement of 6,000.
- Where did this 7,000 of 7,467 and 6000 came from? Our only data source is minimum inventory level. Likewise, this item niether have Sales Order nor Production Order records.
- What is the difference between 'Recommendation' and 'Theoretical Recommendation'?
- What is the basis of theoretical recommendation?
My understanding is that in this scenario, the only basis of MRP's recommendation will be the qty on hand, minimum inventory level and minimum order quantity.
Nagarajan K replied
What you mean by Recommendation' and 'Theoretical Recommendation?
Did you check how to guide for MRP?
Thanks & Regards,