Through the material requirements planning (MRP) functionality in SAP Business One, you can maintain an optimum production plan for multilevel production processes. This support replaces informal, ad hoc production scheduling with a structured process using data from various sources to create an accurate picture of your production and supply chain.
It adds resource information to requirements planning so you can incorporate machine capacity. Sources of data include:
• Bills of materials
• Inventory data
• Input from scheduled production and purchase orders
• Demand derived from actual and forecasted orders Using the MRP wizard, you can specify timelines, stock, and data sources to be considered in planning.
SAP Business One uses this data to make recommendations concerning your material needs – what you’ll need and how much and when, as well as your resource needs. Once these recommendations are reviewed, you can generate the production and purchase orders needed to manufacture a final product in the quantity and time specified by the production schedule. This takes into consideration all requirements for product components and resources. The software also helps you plan the purchase of non-BOM items based on sales forecasts, minimum and maximum quantity levels, and demands made through the warehouse.