What is the priority setting by the degree of coverage?
The sequence in which this new kind of MRP should fulfill the requirements of those sales orders and end product work orders should be the delivery date requested by the customer and/or the desired date of the end product work order, i.e., the date when that work order should be ready. All open sales orders and work orders in the ERP system should then be included in that ‘new type of MRP’ sequence.
Standard MRP is based on a requirement calculation from item to item in the order items are stored in the article table in the ERP system. All article numbers in the article table of the ERP system are checked article by article to determine whether or not a Planned order for such an article should be created in the system, and with what quantity, and at what moment in time.
The MRP mechanism that I propose does this with open sales orders and work orders where the sequence, and thus the priority, is determined by the delivery date requested by the customer for sales orders, and the desired date of work orders on which the work order should be ready.
Such a method of sequencing and prioritizing is much more appropriate for today’s complex business organizations working with ERP, since it better determines what is important and at what moment in time, which the standard MRP is unable to do. Because new orders are added every day in a dynamic business environment; deliveries take place, Purchase Orders are received; production orders are created and completed; new products are added; production processes change; all of this impacts on everyday priorities. This new kind of MRP will give valuable insights not currently available.