Subcontracting requirements does not consider plant's inventory

[juyne_xiang]

Hello,

I am writing this to seek for advices for my current scenario. I have a material with below condition:

1. Parent material A consists of component B

2. Material A I have maintained a valid purchasing info record with Auto Sourcing checked, and create a valid BOM that contains component B, as well as a valid production version

3. For component B, I have maintained the subcontracting MRP area (type 03) in the material master. In the MRP area, I maintained the special procurement type as '30'

Now that for component B, there is an inventory, says 1500 units in the storage location. And because of the POs of material A, there is a subcontracting requirement (MRP element 'SubReq') of component B, says 2000 unit shown in MD04. 

When MRP has executed, it proposed a PR with 2000 units to fulfill the SubReq. It does not consider the stock in the inventory.

So, I would like to understand, will there be a way to allow MRP to consider the inventory? Any advice is much appreciated

Thank you

[DominikTylczyn]

would you share screen shots of MD04 of the component B in plant and MRP areas?

[juyne_xiang]

Hi Dominik, 

Attached picture from my MD04 testing result for component B. In my screen shot, my PR is created under the subcontracting MRP area, which is what I expected after the material master maintenance, but MRP creates 2 PRs with total quantity of 2,700, this is something I do not expected.

Thank you

[DominikTylczyn]

Hello @juyne_xiang 

You plan material B in a subcontracting MRP area, which is separated from plant or storage location MRP areas.

When a subcontracting PO is created, it creates a subcontracting requirement for component B in the subcontracting MRP area. Then a PR is created to fulfill this requirement. Again storage location and subcontracting MRP areas are two separated entities in the system as they are in real life: storage location is your warehouse, whereas subcontracting MRP area manages stock that you have already provided to the vendor/subcontractor.

The PR is to move stock from the storage location to the vendor/subcontractor (subcontracting MRP area). When it is executed it will reduce stock in the storage location and increase stock provided to the vendor thus offsetting the requirement there.

You can't offset a subcontracting requirement with a storage location stock directly. That would be illogical and against the real life process.

Best regards

Dominik Tylczynski

[juyne_xiang]

Hi Dominik,

I have shared my screen shot of MD04 for component B.

I have a little confused when you mentioned the "The PR is to move stock from the storage location to the vendor/subcontractor'. Could you elaborate a bit more on how can I achieve this?

Thank you

[RAHEEL_BABAR]

Hi,

Ensure planning strategy and safety stock in material master. check which planning strategy you are using or share MRP view to understand your issue.

Regards

[juyne_xiang]

Hi Raheel,

Thank you for your reply.

My planning strategy is PD in my material master, and I do not maintain safety stock. I have uploaded a screen shot in my thread, it is about the screen from my MD04. My question is, although the PRs are created under the subcontracting MRP area is what I try to achieve, but I do have stock in my plant as well, so I am thinking, before create new PR, is there a way to allow MRP to consider my stock first?

Thank you