Make To Stock

In the case of products such as FMCG that are in constant demand, it would be required to keep adequate stocks, based on the inventory churn. Depending on the industry and the nature of products, stocks may have to be kept to cover a few months sales, going down to just a couple of days in the case perishables. The Make to Stock model considers the following parameters for the purpose of planning:

• Minimum stock level
• Sales velocity
• Inventory churn

Requirement Methods

The Requirement Methods parameter in Product Master controls how shortages will be handled in CREST ERP. Refer Product-Requirement Methods

In the case of the sample product used in the illustration, we have set a minimum stock level of 100 units for a specific Facility.

When we run MRP, a Requirement is created for this item for 100 units

Click Approve and a Production Run is created against the Requirement.

This Production Run can be processed in the usual manner.