Balancing Target Inventory Levels and MRP
Before you run MRP/DRP, you must compensate for a gap between operations planning and MRP/DRP processing—target inventory. If you do not, MRP/DRP will later generate erroneous order cancellation messages in supply sites.
Operations planning generates orders for both sales forecasts and target inventory. But MRP/DRP generates orders only for sales forecasts. When it encounters target inventory orders, it cannot link them back to specific sales forecasts.
To prevent the error messages, you must usually run Balance Target Inventory and MRP (33.15.17) after you explode the operations plan. Run this utility for all marketing sites, in all domains that run MRP/DRP.
Note: You do not need to run the utility for items with an average weeks-of-coverage factor of zero. There is always a one-to-one correspondence between each week’s target inventory levels and sales forecasts.
The utility generates seasonal build demands for the marketing site. The seasonal build quantity matches the target inventory level. The combined sales forecast plus seasonal build equals the MRP planned orders for the operations planning production demands.
After running the utility, you can use Seasonal Build Maintenance (22.9) to adjust seasonal build quantities or other information.
Balance Target Inventory and MRP (33.15.17)
Item Number/To
Enter the item number range.
Site/To
Enter the site range.
Effective/To
Enter the effective date range. When you specify a non-Monday start date or a non-Sunday end date, the system changes it.
Product Line
If you specify a value, the system processes only items belonging to this product line.
Item Group
If you specify a value, the system processes only items belonging to this item group.
Buyer/Planner
If you specify a value, the system processes only items assigned to this person.
Update Changes Only
Enter Yes to prevent the utility from duplicating previously created seasonal build quantities. Enter Yes if you rerun the utility for a planning period. Enter No only if you must re-create seasonal build quantities.
