Purchase Automation With MRP

One of the biggest advantages offered by MRP in CREST ERP is a high level of automation of Purchasing production raw materials. It supports Just-in-Time [JIT] model of operations to a good extent. By identifying requirements in step with Production Plans, it helps you avoid excess inventory or shortages.

As already explained, MRP run creates requirements of the type Product Requirement for BOM Components. These would eventually lead to Purchase Orders. These requirements can be accessed both from MRP > Requirements as well as from PROCUREMENT > Requirements.

Requirements can have the following status during its lifecycle:

Created – If no Facility is associated with the Requirement
Proposed – If the Requirement has an associated Facility
Approved – The Requirement is approved by Production Department
Rejected – The Requirement is rejected by Production Department
Ordered – Purchase Order placed against the Requirement

*Requirements created by an MRP Run can only be approved by Production Department. These will not show the Approve/Reject Action link in the Procurements Module’s list. Once approved by Production Department, the Requirement will show the Create RFQ action link in the list

Product-level Controls That Influence MRP

You can make CREST ERP sense material shortages in the system and plan procurement accordingly. This is achieved by the Product settings already discussed. We will look at their application in the everyday context in the following sections