Most production plans are built on habit: make what we made last month, and buy when the shelf looks empty. The planning block forecasts demand from order history and the quotes your retailers are already sending, sets a master schedule, and runs MRP through the same BOMs production uses — then checks the result against the capacity you actually have.
Production makes what it made last month, not what customers are about to order.
A work order is released before anyone checks the components are in stock.
The schedule needs 600 machine hours in a week that has 480.
Purchasing orders material for a plan that production has already changed.
Order history plus open retailer quotes.
Finished goods per week.
Explode BOMs; net against stock and open orders.
Hours needed per work centre against hours available.
Late, short and excess — in one screen.
Planned orders become work orders and purchase orders.
Forecast from order history and what your retailers are quoting.
What you plan to make, by item and by week.
Explode the schedule through BOMs to planned work orders and purchases.
Check the plan against machine and labour hours before committing.
One screen to review, firm up and release planned orders.
Illustrative. MRP repeats this for every component on every BOM level — the reason no spreadsheet keeps up.
| Needed for the master schedule | 2,000 |
|---|---|
| On hand | − 450 |
| Already on order | − 600 |
| Safety stock to keep | + 200 |
| Net requirement | 1,150 |
| Supplier sells in packs of 250 | Planned purchase: 1,250 (5 packs), due one lead time before it is needed |
Runs MRP and works through the exceptions in one screen.
Gets planned purchases with quantities and dates, not a wish list.
Sees whether the plan fits the plant before committing to customers.
MRP (material requirements planning) takes what you plan to make, explodes it through bills of materials, nets it against stock and open orders, and tells you what to make or buy, and when.
The master production schedule (MPS) says which finished goods you plan to make and when. MRP works out the components and materials needed to deliver that schedule.
Classic MRP assumes unlimited capacity. Capacity requirements planning checks the plan against machine and labour hours — Brandhubify ERP does both from the same BOMs and routings production uses.
Start from order history, adjust for seasonality and promotions, and add forward signals such as open quotes from retailers. Each month, compare the forecast with actual orders and correct whatever the method misses most.