RE: Frequency to run MRP600

I think the answer to your question depends on how often your demand
changes, how long is your manufacturing throughput time, and how long is
your purchasing leadtime.

We have new make to order customer orders entered daily, to be shipped in 6
days and our manufacturing throughput is 4-5 days.  We need to run MRP500
and MRP600 nightly because we receive new demand daily.  (The good news is
most of our product use common raw materials and we can use a forecast to
determine most of our raw material requirements.  i.e. we can form a lot of
different end items out of a few different coils of steel.)  We issue about
300 shop orders per day.

You could use minimum balances on raw materials to account for changes in
demand if you don't run MRP600 more frequently.  This assumes the use of
common raw materials or very short lead times on raw.

How often does your demand change?
Do you use common raw materials?
What is your lead time on raw materials?
Do you have enough storage space to store a month's worth of raw materials
if you only order once per month?  I know we don't.

Kent Van Horn
Lozier Corp


        ----------
        From:  Ralph_Steffen@astamedica.pt[SMTP:Ralph_Steffen@astamedica.pt]
        Sent:  Thursday, January 13, 2000 6:32 AM
        To:  BPCS-L@midrange.com
        Subject:  Frequency to run MRP600

        Hello Colleagues!

        Since months I have a very hot discussion with differents
departments
        (purchase, admin, etc) about the frequency to run MRP600. We are a
        Pharmaceutical Enterprise on version 6.1 AS/400 with about 200 Shop
orders
        per month. IMHO, we have to run MRP weekly (like our intercompany
        colleagues do), but I could also agree twice per month. Purchase
only want
        it once per month in order to avoid superfluous emission of purchase
orders
        (or to avoid working ;-) ). What is your opinion/experience?

        Regards,

        Ralph Steffen


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