Basic terms for MRP calculation in ERP

Source: Internet
Author: User
What are the terms "hand volume", "in a single volume", and "Reservation amount"? For MRP operations in the ERP system, you must first understand these terms, only by understanding the practical meanings of these terms can you design a running MRP operation subsystem.

1. The purchased item used for production is defined
1. Hand volume: current actual inventory of the purchased item
2. Number of orders: the number of orders (PO) that have been purchased from the supplier but not yet delivered
3. Reservation amount: the ticket (Mo) has been issued, which has been scheduled for use, and the number of materials not yet received by the workshop (still in the warehouse)
4. Availability: the quantity that can be used by new tickets. The following formula can be obtained: "availability = quantity in a ticket + quantity in hand-amount in advance-amount in safety stock"
5. Available in hand: the amount of work orders in hand that can be used by new orders can be obtained: "available in hand = Amount in hand-scheduled amount-Safe Inventory ", that is, "available in hand = available-in a single volume"

Ii. Custom production products are defined
1. Hand volume: Inventory of the finished product
2. Number of orders: the number of orders that have been placed and not yet delivered by the manufacturing workshop
3. Reservation amount: number of orders that have been received but not yet delivered by the customer

Iii. production-oriented semi-finished products are defined
1. Hand volume: Inventory of the current semi-finished product
2. Number of tickets: number of tickets that have been issued and the manufacturing workshop has not yet completed warehouse delivery

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