Make To Order

In this model of manufacturing, the Sales Order is the trigger for MRP to generate a requirement. All production is against confirmed Sales Orders and not for stock. This is usually the practice in the case of high-value products that also take long to manufacture, when keeping them in stock in anticipation of demand is not at all viable.

MRP will consider the following factors when executing a planning run:

• Quantity backordered
• Sales return shipments in process
• Quantity already in production
• Minimum stock level for the Facility, if defined

*Under the Make to Order model, CREST ERP will consider minimum stock level also if defined. However, if you want to avoid any production for stock, you must set the Requirement Method to Automatic For Every Sales Order for the Product, in its Product Master. Refer Product-Inventory Details for more information.

In this illustration, we have set a minimum stock level of 100 for the item for a Facility

Sales Order

A customer order for 500 units of a product has been fully backordered.

These 500 units have to be serviced from the same Facility

MRP Run

Running MRP is fairly easy. Simply choose the Facility for which backorders exist and click Submit.

The MRP jobs that have been executed will be listed on the MRP Log tab.

If the job has run well, it would have created a requirement for 600 units (min stock 100+backordered 500) under the Requirements tab. MRP run creates two types of requirements, namely Product Requirement and Internal Requirement. Product Requirements relate to materials required for manufacturing, that need to be procured from Suppliers. Internal Requirements relate to finished goods that need to be manufactured or assembled.

To go ahead with the requirement, click the checkbox against it ( click Select All, in the case of more than one requirement ) and click Approve. A Production Run is created against the requirement. On the other hand, Clicking Reject will cancel the requirement. Once approved, the Requirement will be removed from the list.

Note that the Production Run has been named ‘Automatically generated by MRP’, by default.

*If the Product has not been linked to a Routing [ Refer: Routing-Product Linking ], the automatically generated Product Run will only have one Default Routing Task associated with it. However, you can add Routing Tasks on the Tasks tab.