Material Requirements Planning (MRP) for Sage 500 ERP

Sage 500 Material Requirements PlanningThe Sage 500 MRP (or Material Requirements Planning) module was originally designed for manufacturers but it can be very useful for wholesale distributors since the Inventory Replenishment system has similar functionality for planning purchase orders but is not time-phased. Further, MRP has a lot more functionality around planning than release orders within the replenishment system. For this reason, Sage licenses companies for both Inventory Replenishment and MRP when they buy one or the other.

Implementing Sage MRP is not easy since there are many parameters that can have adverse effects on the material plan. The MRP module considers Sage 500 supply (inventory, finished good work orders, purchase orders, and inbound transfer orders) and demand (sales orders, raw material requirements for work orders, project accounting material requirements, demand forecast from various sources, and outbound inventory transfers) along with inventory and item parameters to determine what to buy or make, when, how much, and from which suppliers.

Sage 500 MRP is missing many features that are typically available in other MRP systems. As such, most manufacturers and distributors using Sage 500 ERP also use one of the Enhanced MRP planning solutions available from e2b teknologies. These include a traditional Sage 500 SDK application called Enhanced MRP or the newer Anytime Supply Chain product.

Anytime Supply Chain – MRP

For years, e2b teknologies has sold two modules developed within the Sage 500 ERP SDK for supply chain management – Sales Forecasting & MPS and Enhanced MRP which includes dozens of enhancements for Sage 500 MRP. These two modules have been completely redesigned and rewritten in Microsoft .NET and HTML, and they are now available in e2b’s Anytime Supply Chain product for use with Sage 500 ERP and other ERP systems including Sage 100, and Sage 300, and others.

Anytime Supply Chain includes all of the great MRP capabilities in Sage 500 MRP plus the ability to schedule MRP generations; move in/out actions messages; cancellation action messages; min/max/multiple order quantity definition for purchased and manufactured items; blanket purchase order integration with Sage 500 ERP, and dozens of additional features making it even easier for material planners and buyers.

Anytime Supply Chain improves material plans and purchasing with demand pegging, exception messages, approved vendors, and new purchase order parameters. Action messages alert planners to issues regarding actual and planned purchase orders and work orders, with recommendations for move-in, move-out, and order cancellations.  Inventory items can be flagged as “make to order’ so that MRP generates planned work orders dependent to sales order line quantities with the order line copies to the work order as a reference.

The MRP Scheduled Generation Utility is used to automatically generate MRP on a pre-defined schedule, such as nightly or weekly every Sunday night. Users may define a minimum or maximum order quantity for purchased items similar to the min/max options for manufactured items in Routing Maintenance. Further, purchase multiples may be defined for case packs, truckload quantities, carton orders, or other mandatory purchase multiples. Many additional features are included in the Anytime Supply Chain module.

You should understand what fields in Sage 500 ERP impact Material Requirements Planning calculations. e2b teknologies has developed a Sage 500 MRP Guide which outlines every field used by MRP with tips on how to most effectively use the application. This is a critical guide for anyone using Sage 500 MRP.

For more information on the Sage 500 MRP module, or any relevant information on Sage 500,  download our free Sage 500 ERP Owner’s Manual available here or by clicking the button below.

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