Basic production principles
Before going into Microsoft Dynamics NAV, we will discuss some terminology that is important to understand as a basis for the concepts of production in ERP.
Bill of materials
The bill of materials defines what components are used to assemble or manufacture one item. The components in the Bill of Materials are also items, so before creating a new Bill of Materials all component items must be created in the system.
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In Microsoft Dynamics NAV there are two separate Bill of Material definitions. One is for assembling and the other is for manufacturing. |
MRP
Material requirements planning was introduced in the 1960's as a calculation method for production scheduling and was quickly replaced by Manufacturing resource planning or MRP II.
While ERP replaces MRP, MRP is still a crucial part of ERP Applications.
Microsoft Dynamics NAV has a built-in MRP algorithm but also allows...
