Hello,
I am looking for advice on how MRP considers on-hand quantities for shared warehouses.
Operations are shared across sites, and methods are created for every manufactured part. We have one site that saws and cuts all the materials for each site, and material is backflushed upon reporting quantity complete. The saw-cut operation is shared among all sites. The site that saws and cuts the material is defined as the purchasing site, while the rest are transfer sites.
The problem arises when our on-hand quantity is less than the demand quantity from Sites B, C, and D. For example, if the on-hand quantity for Material Part 1 is 100" at Site A and the demand quantity is 120" at Site B, MRP generates a transfer order of 20" from Site A to Site B. I believe this is because the system assumes this warehouse is owned by all sites, therefore only generating a transfer order in the amount of 20". Since the transfer amount is less than the on-hand quantity, the system does not generate supply orders to purchase more.
How can we configure MRP to create transfer orders for the full demand quantity without considering the on-hand quantity when ‘transfer’ is defined as the type for that site?