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Note These FAQs do not apply to Sage 100 Premium.

 How is the demand for an item determined during the MRP generation process?

To determine the demand for an item during the MRP generation process, the system looks at projected demands that have been entered, and existing sales orders. The sales order and projected demand dates usually overlap. If they do overlap, the system considers the existing sales order quantities as part of the projected demand when maintaining monthly projections only. The existing sales order quantities are not considered part of the projected demand when maintaining weekly projections.

 Example 1 - Projecting Demand

Projected demand for May 2003 300 of item XYZ
Sales order 1002 with a promise date of 05/15/03 100 of item XYZ

The system calculates the demand for item XYZ as 300 because the sales order quantity is assumed to be included in the projected demand for the period.

If the quantity on the sales order is more than the projected demand, the system takes the greater of the two.

 

 Example 2 - Projecting Demand

Projected demand for May 2003 300 of Item XYZ
Sales order 1002 with a promise date of 05/15/03 100 of item XYZ
Sales order 1007 with a promise date of 05/20/03 250 of item XYZ

The system calculates the demand for item XYZ as 350 because the sales order quantities are higher than the projected demand for the period.

 

For more information, see:

MRP Generation

Maintain Projected Demands

 

 How do I project demand in Maintain Project Demands with fiscal years?

The following examples illustrate how to project demand in Maintain Projected Demands when you have fiscal years set up in Fiscal Year Maintenance:

 Example 1 - Projecting Demand with Fiscal Years

The current Inventory Management fiscal or calendar year is 2003. The fiscal year set up in General Ledger Fiscal Year Maintenance starts on July 1, 2002 and ends on June 30, 2003. MRP displays calendar year 2002 and 2003 in Maintain Projected Demands. The numbers you enter in this task are projected quantities for the next year, so when you enter a quantity for July 2002, you are actually projecting demand for July 2003. If you post a sale in period 1 of fiscal year 2003, which is actually July 2002, the sale is considered by MRP to be calendar year 2002; even though the sale appears in July 2002 in Maintain Projected Demands, the Projected Demands Report will not print calendar year 2002 (only calendar year 2003 is printed).

 

 Example 2 - Projecting Demand with Fiscal Years

The current Inventory Management fiscal or calendar year is 2003. The fiscal year set up in General Ledger Fiscal Year Maintenance starts on November 1, 2003 and ends on October 31, 2004. Because MRP pulls the calendar/fiscal year from Inventory Management Options, calendar year 2002 and 2003 appear in Maintain Projected Demands. You can enter projected demands up to December 2003, which is actually the projected demand for December 2004. If a sale is posted in period 1 of fiscal year 2003, the sale appears in November 2003 in Maintain Projected Demands and on the Projected Demands Report. If, however, the sale is posted in period 3 of fiscal year 2003, which is January 2004, Maintain Projected Demands and the Projected Demands Report record the sale in January 2003 because there are no future periods.

When General Ledger fiscal periods cross 2 months, sales from the Sales Order module appear in Maintain Projected Demands and on the Projected Demands Report in the month in which the period ends. For example, if General Ledger fiscal period 2 starts on February 15 and ends on March 16, sales from the Sales Order module posted in period 2 appear in March in Material Requirements Planning.