WYS ERP’s MRP helps manufacturing company to forecast the amount and type of products they will purchase, along with the quantity of materials to produce. It is based on two concepts like Make-To-Order (MTO) and Make-To-Stock (MTS). Important process within MRP is explosion of Bill of Material which shows what items are in stock, which item to be purchased and which items to be produced to fulfill the customers demand.
MRP application ensure materials are available for production and products are available for delivery to customers while maintaining the lowest possible inventory levels. By properly managing the types and quantities of products purchased and produced to meet current and future demands you’ll attain high levels of customer satisfaction while reducing cash tied up in potentially obsolete inventory.
The MRP application generates planned orders by analyzing demand for master-scheduled and non-master-scheduled items. Bills of material for the planned orders are expanded to analyze requirements for all lower level items, whether produced or purchased. Requirements at each level are netted against on hand inventory and scheduled receipts for active orders, to determine the need to generate additional planned orders.
Generated planned orders may then be reviewed, optionally consolidated, and released for manufacture or purchase. Multiple reports and inquiries are also available to provide a comprehensive view of current and planned production and purchase activities.