Planning for Co-products
MRP creates base process demand records from the unsatisfied demand for a co-product. An item is a co-product if two conditions are met:
• It is manufactured—its Pur/Mfg code is Manufactured, Routable, or blank.
• Its BOM/Formula code is a base process that has the item as a co‑product.
If these conditions are not met, the item is planned like a regular item.
MRP evaluates the beginning inventory, demand, supply, and safety stock for a co-product, and when there is unsatisfied demand, creates a demand record for its base process. This demand record reflects the amount of the base process required to meet the unsatisfied demand for the co-product.
As shown in
MRP Processing of Co-products, MRP passes demand records directly from the co-product to the base process without using the co-product’s order policy or related planning parameters.
MRP Processing of Co-products
A co-product is like a parent of its base process. MRP plans all items in a site by low-level code, then by item number. Low-level codes are determined by parent/component relationships.
