New customers often ask, especially those migrating from QuickBooks, spreadsheets, or lighter, less manufacturing-oriented systems: what’s required to run MRP in Cetec ERP?
We will break this up into two categories: what’s essential to use MRP, and other considerations to optimize MRP for your business.
First, what’s essential. You will need:
- Accurate Ship Dates on your Sales Orders
- Accurate Work Start Dates on your Work Orders
- Inventory with lead times
- Accurate BOMs and component qty/top
- Accurate Dock Dates on your Purchase Orders
Once you have these established, MRP will function as an effective tool. However, there are many other considerations and ways manufacturers optimize their supply chain. We have a few of those outlined below.
Other considerations:
- ROP: re-order point. This is the ‘safety stock’ setting on a part, and can be configured using the rop_against config setting
- Min / max: ROP can be used in conjunction with EOQ (economic order qty) to create min/max levels for a part at a warehouse location
- Consignment: there are multiple ways to model both customer and vendor consigned inventory, each process would impact your MRP differently
- Scrap and attrition: can you plan for scrap in your BOM? This will inflate qty needed for components on a work order
- Alternate parts and substitutions: do you need MRP to tell you if you have a part that can be substituted on a work order? Cetec ERP can handle this!
- Approved/preferred vendors: who do you buy parts from? This can help your buying process from MRP
- Floor stock: how do you want to handle items consumed in production that are not represented on the BOM?
MRP is a powerful supply chain planning tool. Beyond these basics, manufacturers often tailor configurations to better manage inventory and cash flow. Cetec ERP provides a robust set of tools to support nearly any scenario. Contact us to discuss your setup or speak with a consultant about optimizing MRP for your operation.