- Inventory & Production Planning
- 2014-06-14 13:12:22
1. Material Requirement Planning:
MRP is an old, traditional, push based production planning and inventory control system used to manage manufacturing processes. The biggest drawback of MRP is that it’s a push based system and doesn’t quickly respond to demand/supply variations.
inoERP MRP works like any other MRP based system. It takes input from forecast, BOM, sales order & work orders. System does a complete BOM explosion and then determines the requirement for each item using offset and netting. MRP suggests orders for purchasing & production.
2. Min Max Planning:
Min Max is a very simple but effective material replenishment method. For each item, you specify minimum and maximum inventory levels in an organization or subinvntory (subinvntory level MinMax is not yet fully functional). When the inventory level for an item drops below the minimum, system suggests a new requisition or work order to bring the balance back up to the maximum.
The major limitation with Min Max is that it’s a simple two bin system. So the average inventory hold can be very high for long lead time items. This issue is resolved by Multi Bin Min Max Planning.
3. Multi-Bin Min Max Planning
4. Automated Kanban System