CRITICAL REQUIREMENT FOR THE FRESH FOODS INDUSTRY YOU ARE TRYING TO PENETRATE ....
MRP not taking into account expiration date on POS – purchase order suggestions.
The issue I have is with planning future purchases. I have a fresh vegetable product that would expire in 5 days after receipt with a standard lot size of 25. I have two lots currently in stock. One expires on 2/1/15 and 2/3/15. I have a safety stock requirement of 660 lbs. I run MRP and it does not seem to take into account the expiration dates on suggested purchases.
I have work orders that calls for 55.555lbs of the raw material 2/2/15 and another that calls for 55.555lbs on 2/10.
Because my stock on hand is expiring and the demand requirements (work orders + safety stock) when I run MRP– I get new MRP generated purchasing suggestions (POS):
50lbs for receipt on 2/2 – this is correct after servicing the WO – I need this to again bring me to safety stock
625lbs for receipt on 2/3 – this is correct to get the stock back to safety stock level due to my stock expiring
50lbs for receipt on 2/9 – this is incorrect – it is acting as the 625lbs received on 2/3 is still good inventory, in reality if I had bought and received the product as it was suggested – the on-hand stock would be expired on 2/8 and should force me to buy much more to satisfy my order and safety stock – I would expect a POS for 725lbs. It appears that the expiration date of PO suggestions is not being taken into account for planning future purchases. Only stock physically received is using the expiration date in the requirement planning calculations. Below is the screen prints to support the issue.
Product/Product Site records
Starting Stock
Demand – firm work orders
MRP results
by: John V. | over a year ago | Manufacturing
Comments
This is a critical requirement if you plan to sell this software into the food industry. We absolutely have to have this visibility before we go live next month.