Why is this an optional module?

Many of our clients have large MRP systems.  In such cases, FGS uploads its forecasts and inventory targets to the MRP system, which then plans the parts.

Other clients, without MRP, use FGS' Replenishment Planning Module because they want more than simple reorder points.

Some clients find their MRP systems to be inflexible and hard to control, so they use FGS to master schedule their products.  Then they upload the new firm orders to their MRP system either for further explosion or to prepare work orders for execution.

Plan when and how much to order

Unlike our Demand Forecasting which predicts future demand or Inventory Planning, which suggests how much to order and to hold, the FGS Replenishment Planning module suggests when and how much to order.

This optional module produces a time-phased master schedule for driving Purchasing or Manufacturing, including your existing MRP system.  Unlike simple reorder points (we have those too) this is a time-phased plan.  You can see beyond a SKU's next order.

For existing open replenishment orders it computes need dates, which, when compared with their schedule dates, let you do a better job of managing priorities with expedite and de-expedite reports. The system contains seven customizable planning rules for determining planned orders. These planning rules include (among others):

• Net requirements by period
• Fixed lot quantity
• Fixed time interval (can be keyed to a start date; useful for campaigning similar materials)
• Minimum lot quantity
• Flexible n deliveries per month on any selected day or days of the week (e.g. the first and third Mondays of the month)

Plan at all levels of your bill of material

The module also contains a full bill of materials explosion capability with the parents' net requirements exploding to the components.  A fractional draw quantity is useful for planning bills of materials.  It also handles byproducts.  Flexible stock targets can be computed at all levels. .

Plan your distribution

Replenishment planning also plans warehouse distribution.  It essentially "pulls" the demand from outside warehouses.  The net requirements from each outside satellite warehouse roll up to the master warehouse where the appropriate replenishments are planned.

Additional tools for planning, purchasing, and management

• Expedite and De-expedite reports that can be filtered by user-defined importance.  Rather than a stack of orders to de-expedite, select only the top few that give you most of the desired result.
• Planned Before Firm orders optionally allow planned replenishment orders to be recommended earlier than existing firm orders.  Users have found this helpful by generating small orders to short lead time suppliers, while the primary orders to long lead time international suppiers are on the water.
• Joint Orders recommend which orders to pull in to fill a container load or get a multi-part price break.  The report compares the savings against the temporary increase in inventory.
• Generate spreadsheets of time-phased firm and planned orders to give to your suppliers.
• Extend the replenishment orders by production rates to get a rough cut capacity plan.
• Display projected quantity on hand by item for any period(s).  Calculate how long it will take for inventory to "burn down".
• For any group of SKUs, extend the supply plans, the demand plan, and the inventory plan to verify you are planning to your sales and operations plan (SOP).
• Summarize your weekly inventory plan and project the inventory value for any week over the planning horizon.

Simulate your MRP Plan

One of FGS' greatest features is to test inventory scenarios.  For example, your manager asks:

• If you increase your service, what will the projected inventory balance be at the end of the year?
• If you reduce the lead times, when will you see the impact and how much will it be?

It's easy to create a simulated plan.  Create a new simulation.  Edit your lead times or change the service levels and recalculate the inventory targets.  Run the replenishment plan and the summary report.  That's it!  FGS is a great tool for developing next year's plan—tie the bottoms-up with the top-down!