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[Roberto Garcia]

Does MRP take a look at inventory requirements based on expiration dates?
We have several items in inventory that are received into inventory along with the expiration date entered into NAV at the point of receipt into our warehouse. Will MRP consider the expiration date on the available inventory to net when planning for future requirements?

Example:
we have item “A” that was received into inventory with an expiration date of 6/1/2018 for 30pcs. Our forecast to consume the stock is 10pcs in March,10pcs in April and another 20pcs in July. If I am running MRP through August because of lead-times, should MRP look at the overall demand and know that we are not able to use material currently in stock after 6/1/2018 and suggest a new PO to cover the 20pcs in July?

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Roberto Garcia
Gogo, LLC.
Chicago IL
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[Ian Ray]

Roberto,

The planning or requisition worksheets will not consider expiration dates. There is no filter for inventory that will be expired.

There are some add-ons to make expiration date be taken into account when planning. I want to say Cosmo Consult’s quality management add-on does this, but I am not sure if I am remembering theirs or a different software demo. In any case, it is a question to ask a vendor if you consider acquiring a quality add-on. 

A manual solution is to periodically change the location of any inventory that is near expiration and decide separately if this inventory can be used in production or not. Moving locations will prevent near-expired inventory from being considered in MRP for production locations. You may consider a “QA” location (or locations) for this purpose.

Where I work, we run reports to examine expiration dates and handle expiration issues with different items manually. But, we have less than 200 such items to be concerned with. If the case was 2000 expiring items and months of planning, expiration date management might be more problematic to handle manually than with an add-on or customization.

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Ian Ray
Cypress Grove
Arcata CA
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[Naveen Jain]

Just a thought, may be you can transfer expired inventory to a unique location (may be called EXPIRED or something) and then exclude that location from your calculations.

Since you have entered the expiration date upon receipt, it is not stored in the Item Ledger Entries as well, so I would think it should be easy to transfer all the Open ILE’s which are expired.

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Naveen Jain
Director of IT
Symbex Companies
Santa Fe Springs CA
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[Pat Reyes]

We have had a modifications to Expirations for 2 purposes.

1. With perishable material, we have the Expiration date back dated “x” number of days (done on the lot card) to assure that when we ship, the product will arrive to the customer with the desired shelf life.
2. We have the MRP ignore Inventory with Expiration dates less than the demand date.  This allows Purchasing (production items have very short shelf life), to see true Demand.
3. Inventory Reports are being adjusted to allow us to easily see Inventory that will Expire prior to Demand dates.  Allowing us to do a vendor return, donation to food bank, or other disposition of the inventory.

This has just been implemented and it is looking succesful so far.

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Pat Reyes
Head of IT
Sun Basket
San Jose CA
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[Jenn Claridge]

?As mentioned the Planning and Requisition Worksheets do not consider expired material.

As Naveen mentioned, a manual process you can use until any ISV solution is found or Customization is programmed would be to manual use the reclassification journal to move the expired inventory. I generally suggest to set up a location called “EXPIRED” and then when running the worksheets not plan for that location.

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Jenn Morton
Manufacturing Consultant
Sabre Limited
Cambridge Ontario Canada
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