Balancing supply and demand is much easier said than done. On the surface it seems like a simple concept, but when you get down to it, supply chain management is no easy task and even experienced supply chain managers make mistakes. Unfortunately those mistakes can be extremely costly to an operation when the main goal of any manufacturing company is to fufill customer needs while minimizing the expense. Some mistakes you simply cannot avoid as a member of a supply chain, but other mistakes, the most common mistakes, are easy to avoid when you break them down, apply best practices, and have a solid MRP software solution. Continue reading
Inventory Management Guidelines: Some systems (especially ERP applications designed for wholesale distributors and manufacturers) may have special maintenance screens for other parameters that could (and likely will) affect your MRP planning results. For example, Sage 500 ERP has a task called Setup Warehouse Replenishment software. This task is organized by purchase product line and warehouse to define some of the settings that are used in the MRP software. These may include reorder method (manual, EOQ, Min/Max, or Max), Buyer, Primary Vendor, Standard Lead Time, and Season Start/End dates. Some systems also allow you to define target quantities for ordering by PPL and warehouse – such as target dollar values, quantities, volume, or even by weight.