MRP In Dynamics 365 Business Central  - ERP Cloud Blog
 
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Robert Jolliffe, Sabre Limited

MRP In Dynamics 365 Business Central 


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If you read my Blog post on "What is MRP", you'll realize that MRP has a long and storied history within ERP. You also might recall that I lamented over cloud ERP systems that lacked MRP.  Most Cloud ERP systems actually grew more out of a CRM and Accounting blend background than the MRP and Accounting origins of the 90's and 2000's ERP systems.

 

Not so of Microsoft's new Dynamics 365 Business Central Cloud ERP.  Business Central's pedigree traces its roots directly to Navision, a late 80's ERP system out of Europe that has incorporated Accounting and MRP functionality for over 30 years. In the period from 2016 to 2018, Microsoft increased its investment and R&D into this product dramatically, culminating in a move to the Microsoft Cloud under their Microsoft 365 platform in April 2018.

 

Planning Worksheet

 

The MRP functionality in Dynamics 365 Business Central (D365BC) is built around the Planning Worksheet, a bucketless MPS (Master Production Scheduling), DRP (Distribution Requirements Planning) and MRP (Material Requirements Planning) module.  Support for this is pervasive throughout the system.  There are dozens of planning factors that can be set up per item.  Also, each item can keep a different set of planning factors depending on the warehouse or production location. 

 

Forecasts

 

Most MRP systems offer the ability to do discreet planning based on independent demand from sales orders or from forecasts.  Business Central is no different. Companies can create production or sales forecasts within the system and use those as part of a Sales and Operations Planning process to generate a Master Production Schedule.

Like any good MRP system, the forecasted demand isn't additive with the real sales orders that are entered in the system.  Rather new Sales Orders "Relieve" the forecast. This allows companies to generate future production demand without doubling up in the MRP, a frequent problem with poorly designed ERP systems.

 

Add-ons

 

Like any good Cloud ERP today, there is an ecosystem of add-ons and enhancements to the Business Central product. Companies like Lanham Associates have created even more sophisticated and advanced MRP modules that support MRP buckets, EDI forecast integration, and numerous other features.

 

For more information on MRP, check out our last blog on 3 tips for implementing MRP!

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