Sage 100cloud Tips: What is Material Requirements Planning?

Material Requirements Planning software helps production managers schedule and place orders for items of dependent demand. A dependent demand item is a component of a finished good. Examples of dependent demand items include raw materials, component parts, and subassemblies. The timing of orders for dependent demand items is important to overall production timelines. A manufacturing plant won’t be able to meet its production deadlines if the materials needed to complete the order are delayed, damaged, or otherwise missing. Without the right dependent demand items, companies risk losing money, time, and customers. Many manufacturing companies say that adding materials requirements planning software to their production process was one of the best decisions they ever made. If you are a manufacturer struggling with production delays and late shipments, please read on to learn how the Sage 100cloud Material Requirements Planning (MRP) module for Sage 100 ERP (formerly Sage ERP MAS 90 and 200) could help your business.

Sage 100cloud MRP Module

The Sage100cloud MRP module was designed to eliminate purchasing and scheduling issues. It streamlines the purchasing, inventory, and production processes so that manufacturers can maximize efficiency and reduce downtime.

How Does it Work?

The MRP module uses your data to predict demand. It analyzes open sales orders, sales projections, and required work order and supply components (based on inventory stock levels, open purchase orders, and existing work orders). Then it combines this analysis with product build times, lead times, and supply and demand functions to estimate the need for different inventory items. Companies who wish to benefit from the Sage 100cloud MRP Module must also purchase the Sage 100cloud Inventory Management module. The MRP module requires an integration with the Inventory Management Module to access the inventory items needed it the production or distribution of finished goods. The integration supplies all reorder information, vendor leads times, and product build times needed by the MRP module. The MRP module allows companies to use Sales Projections to create monthly and weekly sales projections by warehouse for each item. Companies can also make monthly and weekly sales projections by customer. The MRP module will use these projections, along with existing sales orders, to create projected demand for dependent demand items. The Project Demand report includes both actual and projected sales. Companies can use Warehouse Groups to group warehouses together and create consolidated recommendations for material acquisitions. This might be useful for companies that, for example, have multiple warehouses in the same lot that produce or store raw materials for one type of finished item.

Get Started Now with Sage 100cloud MRP

Getting started is easy. If you want to eliminate production delays, simplify scheduling, and take control of your material purchasing and production planning, schedule a demo today and learn how Sage 100cloud could help your business.

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