E9.2 MRP when all WO are overdue

cworking

Member
Because of supply chain issues, we now have up to 18 week lead times on orders (both stock and non-stock). Our production control department reports that when MRP runs, everything in the system is due today, and is no help from a planning/scheduling standpoint. The comment I hear is "JDE is a forward-thinking system. It wants to plan for the production of product based on a forecast and orders. With the backlog of thousands of sales lines, JDE wants to plan for the factory to build every valve that was sold or could be sold over the next couple of months. This is not possible as we have constraints in what we can make and supply chain components."
I work in IT and am assuming we have configuration issues with MRP. Can someone confirm or deny that assumption?
Thanks!
 

RussellCodlin

Reputable Poster
The short answer is that JDE is not a forward-thinking system. MRP is a demand pull system that tries to supply material to meet demand and when all of the demand sits inside the expected lead times then you get this result. So the only way to really "fix" MRP is to change the demand to meet supply. If you make to order then this may be a tedious challenge but if you make to stock then you should be able to plan the work orders out based on raw material supply forecasts and then freeze them. From there you can look for stock outs in S&D and update sales order pick dates to suit. Fundamentally, MRP assumes infinite raw material supply and infinite manufacturing capacity when generating messages. Good luck getting the sales department to prioritize their orders ;)
 
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