Question: How does DRP handle multi-level bills of material?
Answer: DRP was designed to handle the requirements of multi-level bills of material.
If an actual planned receipt is created in DRP for a product/location for which Build is its primary replenishment path, then its component requirements are exploded, taking into consideration the lead time and the component quantity needed to build the bill of material product.
Note These component requirements are displayed as Remaining Dependent Forecast on the DRP Schedule Management tab of the Product DRP Management, and their lead time is used for the calculation. For more information, see DRP - Lead Time Calculation FAQ.
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Example Product A has a first level bill of material of A1 (Build primary replenishment path, component quantity of 2, and lead time of 30 days) and A2 (Build primary replenishment path, component quantity of 3, and lead time of 60 days). If there was a planned receipt of 1,000 of A on 10/1/2020, then the component requirements would be:
If the forecast for Product A changed and now there was a planned receipt of 2,000 A on 10/1/2020, then the component requirements would change to:
Also, products A1 and A2 get flagged as requiring regeneration because they are marked as Build for their primary replenishment path. Once regenerated, the flag is turned off. |
Note Actual Planned Receipt Create has an option, Only Products Marked for Regeneration, to process flagged products, and any subsequent downstream bill of material levels that may require regeneration.
Example Product A1 is comprised of A1a (Build primary replenishment path) and A1b (Purchase primary replenishment path). If there is a change in an actual planned receipt for A1, then A1a is flagged as requiring regeneration.