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Overview

This article details the Demand Types, Order Types, and Status' used in the MRP function.

Types of Demand

A key variable in the MRP material plan is Demand. Demand against an item represents a requirement only satisfied by on-hand inventory or an open supply order representing future anticipated on-hand inventory. MRP as a planning task monitors the balance between supply and demand. Various MRP reports and screens display these demands grouped by Demand Type adding some granularity to the user as to the origin of the demand. Recognizing the origin of the demand (ex: customer order demand versus forecast demand) provides a key indicator during analysis.

Forecast Demand = Forecast Demand is a variable impacting the MRP Material Plan. The Forecast is typically the anticipated customer demand for a product. MRP treats Forecast as independent demand and creates planned work orders or planned purchase orders to cover the demand. Under this condition; Forecast as demand drives the MRP Plan for manufacturing and purchase activity in advance of the Customer Order. Without a Forecast, MRP Plans for manufactured and purchased items are not generated until an actual customer order is entered.
Dependent Demand = Demand is demand tied directly to the production of another item. Example: A Work Order or a Subcontract PO for a parent assembly creates Dependent Demand for the components required.
Independent Demand = Demand that is not tied to the production of another item. Example: A Sales Order is Independent Demand for the item being sold.
Inter Division Demand = Demand from another division within the company.
Inter-Site Demand = Demand from another site within a division.

Order Types

A key variable in the MRP material plan is the Supply Order or Demand Order. A Supply Order represents anticipated on-hand inventory. A Demand Order represents a requirement that must be satisfied. MRP, as a planning task, monitors the balance between supply and demand. Various MRP reports and screens display these orders grouped by Order Type to aid in supply/demand analysis.

Supply Order Types - Orders providing materials

(M) Work Order
(P) Purchase Order
(R) Inventory Requisition

Demand Order Types - Orders requiring (or consuming) materials

(0) Forecast Demand
(1) Sales Order Demand
(3) Requisition Component Demand
(4) PO Component Demand
(6) Work Order Component Demand

Order Status Indicators

A key variable in understanding the supply and demand picture is to understand the status of the individual orders progressing through their complete order cycle. The MRP material plan also uses order status as an indicator in developing the impact any one order will have on the material plan. Various MRP reports and screens display and group orders related data by status. Viewing data grouped in this fashion provides a key indicator to the user on the scope/volume of activity pending for a group of orders each at the same status. Each supply and demand order has a status (Status Code & Status Name) that reflects the current step of the order within the order process.

Purchase Order Status Types

(1) Planned = Status set by the system for MRP generated Planned Purchase Orders (Requisitions) under the control of the MRP planning logic.
(2) Firm = Status set by the user. A Firmed Order (Requisition) under the control of the planner. MRP logic will generate Action Messages but will not change the order.
(3) Approved = Status set by the user. Approved inventory requisitions are under the control of the buyer pending the conversion to a purchase order.
(4) Line Added = Status set by the system when a Purchase Order Line is added to the Purchase Order.
(5) Subcontract PO Pick = Status set by the system when Pick List records are generated for a Subcontract Purchase Order.
(7) First Activity = Status set by the system after the first recorded receipt transaction.
(8) Received Complete = Status set by the system when the total receipt quantity equals the order quantity.
(9) Closed = Status set by the system to denote that the Purchase Orders is closed and in the case of Subcontract Purchase Orders the Subcontract PO is closed and the Subcontract PO Variance has been computed. Transactions against a closed order are not allowed.

Work Order Status Types

(1) Planned = Status set by the system for MRP generated Planned Work Order under control of the MRP planning logic.
(2) Firm = Status set by the user. Firmed Work Order under the control of the planner. MRP logic will generate Action Messages but will not change the order.
(4) Released = Status set by the user. Denotes that the Work Order has been released to production and the pick list can be printed.
(5) Pick List Records Generated = Status set by the system when Pick List records are generated for the Work Order.
(7) First Activity = Status set by the system after the first labor booking or material transaction against the Work Order.
(8) Received Complete = Status set by the system when the Work Order total receipt quantity equals the order quantity.
(9) Close = Status set by the system after the Work Order variances have been computed. Transactions against a closed order are not allowed.

Sales Order Status Types

Pending Approval
Pending Fulfillment
Pending Invoice

Sales Order Demand Status Types

(1) Planned = Indicates demand is from an unapproved Sales Order. MRP will not recognize unapproved orders.
(2) Firmed = Indicates demand is from an approved Sales Order. MRP will recognize firmed orders and will plan accordingly.
(7) Issued = Indicates a Sales Order issue (shipment) has taken place.
(8) Shipped Complete = Indicates the total shipped quantity equals the order quantity.
(9) Closed = Indicates that the Sales Order is Closed.

NOTE MRP recognizes the Sales Order Line when the demand status is greater than or equal to Status 2 and less than Status 8.

Work Order Component Demand Status Types

(1) Planned = Indicates demand is from an MRP generated Planned Work Order.
(2) Firmed = Indicates demand is from a Firmed Work Order.
(7) First Activity = Indicates the Work Order status is First Activity.
(8) Complete = Indicates the Work Order demand is Complete.
(9) Closed = indicates the Work Order demand is Closed.

Purchase Order Demand Status Types

(1) Planned = Indicates demand is from an MRP generated Planned Work Order.
(2) Firmed = Indicates demand is from a Firmed Work Order.
(7) Receipt = Indicates the Purchase Order status is Received.
(8) Complete = Indicates the Purchase Order status is Complete.
(9) Closed = Indicates the Purchase Order status is Closed.

Title	MRP Terminology

URL Name	MRP-Terminology

MRP Terminology