Using "Lot validation for minimum quantity" setting

Customer Introduction:

This customer is into precision machined components such as tube fittings and valves

Problem / Goal:

Upon running the MRP program, OurSys used to allocate the raw material lot to a job purely on the FIFO basis without checking the minimum size requirement. Example: If the cutting length required was 100 mm and the first lot did not have 100 mm, it still allocated that lot partially and then took the balance from the next lot by FIFO. But this created errors in the requirement as the pieces smaller than 100 mm were useless.

The Solution:

We introduced a setting in the MRP to validate the minimum size of the lot. This ensured that lots of smaller size were not allocated and the actual shortfall could be calculated.

The Result / Benefits:

This solved the error in calculating the shortfall and the company started using the MRP this bringing in all the benefits of the MRP program. (Read this article for know the benefits of MRP system)