Hi experts, I have a question regarding MRP. So we noticed that sometimes when a sales order comes in put a demand on an item, then MRP schedules planned PO and WO. However, due to the item PO lead time, sometimes we see a PO for raw material isn't planned to come in until after the end date (expected ship date) of the SO. Can someone help me get this straight? I understand if the item has longer lead time but does this mean we can't get the SO fulfilled on time because raw material won't come in before the SO expected ship date? Any knowledge share helps, thanks in advance!

This is most likely because the raw component is inside of lead time. If I want to ship a bike in 30 days and the chain lead time is 22 days and the work order lead time is 30 days I will get a Planned PO dated for today with an expected arrival of 22 days from now and planned wo starting today and ending 30 days from now.

Hi Bryan, thank you. The situation here is we need to ship the bike in 30 days and the chain lead time is 40 days... now that I am thinking maybe the raw material's safety stock level should be taken more serious to make sure have stock on hand for long lead time items...

That would make sense as long as the chain isn't too expensive and has good velocity. Business decision.

Hi Bryan, just wanted to get your opinion, is it common for raw material has long lead time and can't arrive on time before SO ship date? I am not sure if this a usual thing or i need to let customer to review the lead time and see if they need to adjust it.

I would suggest that the expected ship date should always be the date that you will actually ship it based on lead times. A customer requested date could exist as a custom column but leaving expected ship date inside of lead time can create issues in most setups when it comes to late period days or past due demand and drive duplicate signals. I always advise sales to know their ATP and use that as expected ship date

Yeah, that's exactly what it means - if raw material lead times push past your SO ship date, MRP is telling you that order will be late. The system is being honest about timing constraints. You'll need to either expedite the raw material order, find alternative sourcing, or adjust the SO ship date to match realistic lead times.

My issue with MRP, is similar. if there is a SO. with a WO. and the WO has a item that is back ordered. the WO isnt dated correctly. So we have a script that redates the WO to after the PO date.

Hi Pete, thanks for this information. yeah we have some issues regarding the planned work order date in MRP as well...would you mind share the script that you use to redate the WO?

I am not at liberty to share that. But it basically looks at the max of the dates on the items of the WO. and then date the end date after that.

Understood! thank you so much!

The"Expected Ship Date" on the SO will reflect the end date of the WO.