Sage 500 MRP Advice & Suggestions

While previous posts focused on Anytime Supply Chain software across a variety of ERP and accounting systems, this article specifically addresses users of Sage 500 ERP and considerations they face using the Sage 500 MRP and Inventory Replenishment software module and Sage 500 MRP Advice & Suggestions.

Companies using Sage 500 ERP in a distribution or manufacturing environment should know how MRP software works and when they may need a more advanced system like e2b Anytime 500 Enhanced MRP software or Anytime Supply Chain software. Below is Sage 500 MRP advice and some suggestions as well as a brief overview of considerations for material and supply chain planners working with Sage 500 ERP:

Inventory Kits – Assembled Kit and Build to Order Kit demand is not supported in Sage 500 MRP software. Most companies use the Light Manufacturing or Advanced Kitting option for kits when they choose to replenish inventory using MRP since this approach integrates with the Sage 500 MRP software module as well as e2b Anytime 500 Enhanced MRP software and Anytime Supply Chain software products.

ECO Dates – Sage 500 MRP software does not natively consider future-effective Engineering Change Order effectivity dates. The e2b Anytime 500 Enhanced MRP software module looks to see which version of the routing and bill of material will be effective, approved, and the standard version to use throughout the MRP software planning horizon so future-effective changes are considered appropriately.

Sales Orders On Hold – On hold sales orders are considered as demand within MRP planning.

Sales Orders Unacknowledged – Unacknowledged sales orders are considered as demand within MRP.

Purchase Orders On Hold – MRP software considers on hold purchase orders in supply calculations.

Purchase Orders Unacknowledged – Unacknowledged purchase orders are considered for supply calculations.

Changes to Existing Orders – MRP software does not suggest changes to existing orders.  It will create new Planned Orders.  It is up to the user to review new planned orders and determine if existing orders should be changed or new orders created.

MRP Vendor – Older versions of Sage 500 MRP software did not allow planners to override the default vendor during material planning. The only way to purchase from another vendor was to view the suggested orders and then to manually create the purchase order in the system. e2b Anytime 500 Enhanced MRP software allows for the identification of approved vendors and the override of the default vendor (defined by purchase product line or PPL) with an approved vendor before converting planned orders to actual orders.

Maintain Vendor Items – MRP will use the price breaks defined in the Maintain Vendor Items screen when determining the quantity to order if Discount Amount or Discount Percent is selected as the Discount Method.  It suggests the best price break (25,001 – 9999999 = 4% discount, the quantity suggested would be 25,001, even though demand was only for 10,000).  If Fixed Amount is selected for the Discount Method, only the required quantity is suggested, but the price is calculated for the PO planning using the Fixed Quantity price.

Warehouse Transfer Lead Time – Even though warehouse transfer lead time is defined, MRP software only looks at the Maintain Inventory lead time when determining the Order Date for the transfer. e2b Anytime 500 Enhanced MRP software allows companies to set an internal lead time which may be beneficial for correcting this calculation.

Co-Products – Sage 500 Advanced Manufacturing supports routings and bills of material that result in the production of co-products or by-products where more than one unique item is produced during manufacturing. However, MRP software will suggest multiple work orders – one for each unique part instead of using the co-product or multiple parts produced functionality. Planners can review suggested orders and can then manually create co-product work orders manually.

MRP & APS – MRP software assumes 24×7 resource and machine availability. When the Sage 500 Advanced Planning & Scheduling module is installed, setup, and used – MRP takes into account machine and work center availability including holidays, regular operating schedules, and maintenance schedules.

Action / Exception Messages – Sage 500 MRP does not include action or manufacturing work order exception messages, purchase order exception messages, and inventory exception messages. This functionality is provided in e2b Anytime 500 Enhanced MRP software and Anytime Supply Chain software to recommend move-in, move-out, and cancellations to orders based on shifts in supply or demand.

Master Production Schedule Software (MPS Planning Software) – Sage 500 MRP, e2b Anytime 500 Enhanced MRP software, and Anytime Supply Chain software are all master production schedule software or MPS software meaning that companies can evaluate supply and MPS demand planning one-level at a time within the bill of material structure planning for top-level finished goods first and then moving through the bill of material to lower-level components, all the way down to the purchased raw material. Anytime Supply Chain software is one of the only cloud-based master production scheduling software products available.

we hope you found our Sage 500 MRP advice helpful.

e2b teknologies is the original developer of Sage 500 MRP software. The Company continues to develop new features for Sage 500 MRP software and now offers Anytime Supply Chain software, the next-generation cloud MRP software and cloud DRP software is available for Sage 500, Sage 300, Sage 100, Intacct Financials, Intuit QuickBooks, and other accounting and ERP business applications.

Additional Resources:

Sage 500 MRP Advice

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