Importance of stock keeping units in MPS/MRP Process in NAV/D365 Business Central

Introduction:

For every manufacturing company, the MPS/MRP process engine plays a vital role in the production and supply of their inventory by creating Production orders, Purchase orders, Assembly orders and Transfer order based on the forecast demand, sales orders etc.

If you have more than one warehouse where one warehouse makes the raw material and the other warehouse assembles it and completes it to a finish product, you not only will require to transfer your inventory back and forth between the warehouses but also you will require two replenishment systems in NAV/D365 Business central, one for Producing the part and the other for transferring it to another warehouse if you wish to use MPS/MRP process.

Normally, we only have one replenishment system for each item on the Item card but we can easily have more than one replenishments using stock keeping units. As for MPS/MRP, we require the planning engine to automatically prompt us in creating a Production/Purchase order and transfer it to another warehouse we need to set up the Stock keeping units for the Item.

Pre-requisites:

1. Make sure you have transfer routes setup on NAV/D365 BC
2. Inventory postings is setup for the locations

Steps:

1. Navigate to the Item card by typing Items on the search bar. Select the item you wish to create stock keeping units.

4. Enter the location code if the location filter else NAV will create the stockkeeping units for all the locations available in NAV.

5. Click on Navigate tab and click on Stock keeping units.

6. I have created the stock keeping unit for two locations: COV MAIN and KID MAIN and as the Item card has replenishment system as Prod. order, the same setup will be copied to both stock keeping units.

7. Select the line whose Stock keeping you would like to change to transfer order.

8. Enter the new replenishment system as transfer and the from location code from where you would like to transfer the item.

9. After you have entered the above details, click on OK. You can view the changes in the stock keeping unit list as below.

10. Once you run the MPS/MRP engine, it will suggest you both Production and transfer orders based on your demand and inventory levels. Please click here to learn more about MPS/MRP

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