MRP parameters help please ?

Question

Hello everyone 
 I need a small assistance please 
 I want MRP to consider the first 4 months as firm sales orders and ignore forecasts in those months and then consider forecasts for month 5 onwards . What I noticed is that the MRP did not consider the forecast in the calculations for purchasing any components .. which is weird ? 
 
 I put FOH =4 , POH =4 
 
 any ideas please

Julien Patureau · Accepted Answer

Please ensure the requirements parameters include forecast as demand: 
 
 Else, I think you should provide an example to better understand the issue.

Qeqesha · Answer

Your question is hard to respond to as it lacks sufficient detail. 
 Take a look at parameters In General parameters, Chapter STO->Group SCH and Chapter GPA->Group LOA. 
 Check also on product site, Planning tab, Planning block for firm and demand horizon. 
 An example of a demand horizon of 2 weeks, and forecasts ignored in the demand horizon.

Julien Patureau · Answer

Hi Faris, first of all I see the demand forecast is properly setup. Then I have no clear answer for you. I understand your question as : "it best to produce on demand or from a sales order?" To me buying on forecasted sales allow to better drive your supply chain (hence saving money) but you take a risk of having a wrong forecast and having too much stock on hand or a shortage. So the questions you have to answer would be: 
 - are you able to calculate reasonnably correct forecast? 
 - what is the cost of having an incorrect forecast? 
 From my experience, companies that can afford to have long shipment lead-time are buying on sales demand (MTO model). Companies that might lose the sales if the stock is not there when the customer place an order, will use forecasts (MTS model). 
 I hope this will hep you to assess the impact of your strategy.

Sage X3

MRP parameters help please ?

Top Replies

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING