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MRP with Multiple Location

  • 1.  MRP with Multiple Location

    SILVER CONTRIBUTOR
    Posted Apr 25, 2019 11:35 AM
    We have just expanded.  Prior to the expansion both our production and fulfillment was all in one location having multiple bins.

    Since the expansion, our production is in one location where we also store all of our components and our fulfillment is in another location.

    Our forecast is loaded against the location where we produce our goods and I believe we'd need to keep it as such to drive our suggestions.

    The issue is that now, our forecast is no longer getting consumed as we're shipping our FG's out of our new fulfillment location.  I could change the forecast to be against our new location but then I'm concerned it wouldn't drive our production requirements properly.

    In Short:

    Location A = Production and forecasts loaded to this location

    Location B = Fulfillment and all sales orders and warehouse shipments are from this location for all finished goods.

    Forecast not being consumed (anticipated) but does anyone currently have this scenario and if yes, what is your setup?  I suspect there is a small mod. that would be needed.

    Thank you all in advance for your feedback.

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    Nathalie Pelletier
    FoodState
    Manchester NH NH
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  • 2.  RE: MRP with Multiple Location

    TOP CONTRIBUTOR
    Posted Apr 26, 2019 07:26 AM
    You should be able to do this out of the box. You need to complete some setup and start to use SKU cards.

    Assumptions
    Location A = Production & components
    Location B = FG
    You transfer FG inventory from Location A to Location B after output

    Setup Changes Needed
    • ​Update Sales Orders to ship from Location B
    • Update Production Forecast to use Location B for FG
    • Create Stockkeeping Unit Cards
      • Location B SKU Card
        • Replenish by Transfer
        • Transfer from Location A
      • Location A SKU Card
        • Replenish by Production Order

    Process Changes
    • When you setup new items always create the SKU cards
    • When you run the planning worksheet include Location A & B
      • You can ignore the Transfer lines if you manually create Transfer Orders for your finished goods


    ------------------------------
    Andrew Good
    President
    Liberty Grove Software
    Oakbrook Terrace IL
    ------------------------------



  • 3.  RE: MRP with Multiple Location

    SILVER CONTRIBUTOR
    Posted Apr 29, 2019 11:55 AM
    Thank you Andrew and also to the person (sorry drawing a blank on name) who called and left a message.

    We are in fact using SKU's and I should have mentioned that.  My SKU for Location A (Production and components) is set to production on replenishment.

    My SKU for the new location = Location B is set to Transfer and we do not follow the suggestions but instead we delete them as we have a different internal process for moving inventory from A to B.

    I believe, the only thing I would need to do at this point it so start loading my forecast against location B instead of location A now that we're no longer consuming FG out of location A.  GIven that all of my sales orders are against location B, as long as the forecast is also loaded for location B then my forecast would be consumed.  It is the little things and the talking out that makes life all that much easier.

    Again, I thank you both!

    ------------------------------
    Nathalie Pelletier
    FoodState
    Manchester NH NH
    ------------------------------



  • 4.  RE: MRP with Multiple Location

    TOP CONTRIBUTOR
    Posted Apr 30, 2019 08:25 AM
    Nathalie,

    Because you are deleting the Transfer suggestion you need to be careful what order you run your process in.  By deleting the Transfer Order suggestion you are removing the Demand from Location A, which in turn would mean you don't need the Production Orders creating supply.

    Also, the lack of demand (deleting the Transfers) will cause the system calculations to be high, which means you could bump into the Overflow Limit.  If you are using Order or Lot-for-Lot, you could end up with some Cancel suggestions.

    I would encourage you to find a way to use the Transfer Order (to track your internal process) or create the Demand for Location A, or the system will have a hard time making and keeping suggestions.

    ------------------------------
    Ben Baxter
    Consultant
    Accent Software, Inc.
    carmel IN
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  • 5.  RE: MRP with Multiple Location

    SILVER CONTRIBUTOR
    Posted Apr 30, 2019 11:37 AM
    Ben, THANK YOU!!  We will be running through many UAT tests with the planning team in our test environment and we are seeing this effect..  That and many other factors that are driving the organization to review the entire setups.  I think we are looking at a full reimplementation.   Fortunately they've been using a spreadsheet for years and continue to do this as a GUT check.

    ------------------------------
    Nathalie Pelletier
    FoodState
    Manchester NH NH
    ------------------------------



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