Calculate Material Requirements

This guide shows how to calculate exact raw material quantities needed for CGIC production runs (e.g., 10,000 Ovita Water bottles). Automate planning to avoid shortages or overstocking.

Prerequisites

Before calculating:

1. Active BOMs: For all products (e.g., Onina Tissue BOM with pulp, adhesive, packaging).
2. Accurate Stock: Update raw material quantities in Stock > Stock Balance.
3. Substitutes: Define alternates (e.g., Yeast-Brand-B for Valdana Bread).

1.0 Overview

Material Requirements Planning (MRP) calculates total raw materials needed based on:

• Production Quantity (e.g., 5,000 Valdana Bread loaves)
• Bill of Materials (BOM)
• Current Stock Levels
• Planned Substitutions

2. 0 Step-by-Step Calculation

2.1 Generate Production Plan

1. Go to: Manufacturing > Production Plan > New
2. Fill in:
   • Item: Finished product (e.g., Luca Engine Oil 5W-30)
   • Quantity: Production target (e.g., 1,000 liters)
   • Use Multi-Level BOM: ✓ Check if using sub-assemblies
3. Get Raw Materials:
   • System auto-calculates requirements based on BOM.

2.2 Review Material Requests

1. Raw Materials Table shows:
   • Required Qty: Total materials needed (e.g., 950L base oil for 1,000L Luca Oil)
   • Available Qty: Current stock
   • Additional Qty: Shortfall to procure
2. Consider Substitutes:
   • If Additive-X is low, system suggests Additive-Y (if defined as alternate).

2.3 Adjust for Waste/Scrap

In BOM settings:

1. Set Scrap % for loss-prone materials:
   • Example: 5% scrap rate for Ovita Water caps → system adds extra 5% to requirement.

3.0 CGIC Product Examples

Valdana Bread (1,000 loaves)

Material	BOM Qty/Loaf	Total Required	Available	To Order
Flour	0.5 kg	500 kg	300 kg	200 kg
Yeast	0.02 kg	20 kg	5 kg	15 kg (or Yeast-Brand-B)
Sugar	0.1 kg	100 kg	120 kg	0 kg

Ovita Waters (5,000 bottles)

Material	BOM Qty/Bottle	Total Required
Bottles	1	5,000
Caps	1	5,000 (+5% scrap = 5,250)
Purified Water	0.5L	2,500L