Infor LN & Baan Tip: MPS Planned vs. MRP Planned

When deciding what items should be MPS (Master Production Schedule) planned and what items should be MRP (Material Requirements Planning) planned, it's crucial to understand the nature of the items and their demand sources. Here's a breakdown:

• Master Scheduled Items:

  • Master Scheduled Items are typically finished goods or service items.
  • These items receive their requirements from both Independent and Dependent demand sources.
     

• Independent Demand:

  • Independent demand cannot be calculated from higher-level demand in the product structure.
  • It is driven by forecasts or actual customer orders, primarily applicable to Finished Goods or Service parts sold to customers.
     

• Dependent Demand:

  • Dependent demand is derived from higher-level demand in the product structure.
  • It includes components, raw materials, and sub-assemblies.
  • Dependent demand items are not typically part of Master Production Scheduling (MPS).
     

• Service Parts:

  • Service parts can have both independent demand from forecasts or customer orders and dependent demand from higher-level demand if they are used in sub-assemblies or other products.
     

• Cumulative Lead Time:

  • Cumulative Lead Time is a concept used in MPS.
  • It combines the fixed lead time and variable lead time required to produce a product.
  • It represents the longest path through a Bill-of-Materials (BOM).
  • Your ERP system will calculate the cumulative lead time (Critical Path) based on MPS setup options.
     

• Infor LN Approach:

  • Infor LN does not differentiate between MPS and MRP planning.
  • It uses Enterprise Planning (EP) with one set of planned orders.
  • While you can set up items and generate orders at plan levels, it's not always necessary.
  • In theory, you could treat plan level 1 similar to MPS items.
     

• Defining Independent Demand in LN:

  • In LN terms, independent demand is demand not related to other planned items.
  • Dependent demand comes from related planned items higher up in the BOM structure.
     

• COLT (Cumulative Order Lead Time):

  • COLT exists in the purchase and manufactured planned items.
  • It considers non-critical and critical lead times based on components marked as critical.
  • Once calculated, COLT can be used to update the order and planning horizons of a planned item.

Relevant Sessions:

In Baan IV:

• Maintain Item Data (tiitm0101m000)
• Generate MPS (timps3201m000)
• Maintain Master Production Schedule (timps3101m000)
• Display Planned Inventory Movements by Item (timrp1510m000)
• Display Planned MRP Purchase Orders (timrp1521m000)

In Baan V:

• Plan Item Data (cprpd1500m000)
• Item Master Plan (cprmp2101m000)
• Time-Phased Overview (cprrp0520m000)

In Infor LN:

• Item – Planning (cprpd1100m000)
• Item Master Plan (cprmp2101m000) - Same as Master MPS if used

For more information and assistance, you can contact Crossroads RMC at 800.762.2077 or via email at solutions@crossroadsrmc.com.

Kathy BartheltKathy Barthelt

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