MRP Consideration of Lead Times and Long-Term Planning?

Hi everyone,

I’m using ERPNext’s MRP (Material Requirements Planning) module and I have a few questions regarding its functionality:

  1. Does MRP consider lead times when generating material requirements?
  • Specifically, does it take into account the lead time for each item to ensure that the required materials are available on time?
  1. Can MRP handle long-term planning?
  • For example, can it generate a plan for 1 month or 3 months ahead, providing weekly demand and procurement plans, as well as arrival schedules?

Any insights or guidance would be greatly appreciated.

Thanks in advance

I think, you have to check this.

Thanks for your reply.

I read the link. I want to know if are there some demos or training for erpnext mrp?

For exapmle, can ERPNext implement the following scenario? and how?

Example Scenario

Assume we are a small electronics manufacturer producing a product called “SmartGadget.” This product consists of the following components:

  • SmartGadget (Finished Product)
  • Display
  • Battery
  • Chipset
  • Enclosure

Bill of Materials (BOM)

Product/Component Unit Quantity Cost
SmartGadget Each - -
Display 1 $10
Battery 1 $5
Chipset 1 $15
Enclosure 1 $3

Material Requirements Planning (MRP)

Product/Component Demand Quantity Demand Date Lead Time Planned Receipt Date Planned Order Release Date Cost
SmartGadget 100 Day 5 3 days Day 2 Day 2 $3300
Display 100 Day 2 2 days Day 0 Day 0 $1000
Battery 100 Day 2 1 day Day 1 Day 1 $500
Chipset 100 Day 2 3 days Day -1 Day -1 $1500
Enclosure 100 Day 2 1 day Day 1 Day 1 $300

Production Schedule

Product/Component Production Quantity Start Date Completion Date Work Center Daily Capacity Required Hours Hourly Cost
SmartGadget 100 Day 2 Day 5 WC1 50 units/day 3 days $600
Display 100 Day 0 Day 2 WC2 50 units/day 2 days $400
Battery 100 Day 1 Day 2 WC3 100 units/day 1 day $200
Chipset 100 Day -1 Day 2 WC4 50 units/day 3 days $600
Enclosure 100 Day 1 Day 2 WC5 100 units/day 1 day $200

Cost Accounting

Product/Component Total Cost Unit Cost
SmartGadget $3900 $39
Display $1000 $10
Battery $500 $5
Chipset $1500 $15
Enclosure $300 $3