E9.1 Expiring Raw Materials in Finished Goods - How To Prevent and Prompt to Order More

[richchipper]

Let me give a scenario. I am making ice cream. My milk is going to expire at the end of the month. I have enough work orders to use up the milk before the end of the month. MRP does not prompt any demand for more milk.

However, this means the ice cream that will be made using this milk will also be expiring at the end of the month. Is there any way for us to flag this milk so that we can't use it in work orders and MRP prompt for more milk?

 

[arthart]

First paragraph sounds like you are consuming all your expiring raw materials into finished goods before the RM expiration. MRP does not ask for more RM because it doesn't need it. All good so far and MRP has done it's job.

Second paragraph goes off the rails a bit as far as the FG is concerned. Manufactured ice cream gets blast frozen for four hours immediately afterwards which starts the FG shelf life. Since the RM is consumed before it's expiration, everything is still good. The FG is not affected by the RM expiration date as long as it is consumed and frozen before the expiration.

If the RM milk you currently have is something you choose to not use, put the lot on hold, or shorten the RM shelf life, or dispose of it. MRP will compensate by suggesting acquiring more milk up to the work order demand, plus safety stock if applicable. MRP only knows what you tell it, whether it's RM lot expirations or work order demand. If you feel it's too risky to use near-expired RM, it's up to you to let MRP know by expiring them or removing them as a source of supply to the work order.