Understanding BOM Calculations and Absorption Costing with Microsoft Dynamics 365 Supply Chain
Microsoft Dynamics 365 Supply Chain simplifies absorption costing and Bill Of Material (BOM) calculations, ensuring precise product costs and...
3 min read
Nancy Phillippi
Dec 8, 2022 3:07:24 PM
Material Requirements Planning (MRP) has a long history of success in tracking manufacturing materials and components. Recently the global supply chains have been problematic across the globe affecting multiple industries. What can manufacturers and distributors do to prevent stockouts and overstocks? If you’re suffering from supply chain disruptions, it may be time to look at the benefits of adopting Demand Driven Material Requirements Planning (DDMRP) within your manufacturing ERP. Learn how DDMRP within Microsoft Dynamics 365 Supply Chain Management can benefit your company.
The reality is that supply chain disruption and shortages are here to stay for reasons that may never have a solution. DDMRP is the next generation of planning and delivering goods on time despite possible shortages of supply that disrupt the manufacturing process and delivery time. Common reasons for supply chain disruption are:
Microsoft describes the 5 components of DDMRP with "five sequential components (steps). The first three components essentially define the initial and evolving configuration of a demand-driven material requirements planning model. The last two components define the day-to-day operation of the methodology.
DDMRP is typically used by manufacturers that have a multi-level bill of materials (BOM). However, it can also be applied to distribution and retail networks."
Here are just a few of the benefits of DDMRP:
DDMRP It is not a new module in Dynamics 365 and it does not replace existing on-board planning functionality. It's already integrated within the existing planning configurations in Dynamics 365 Supply Chain Management. You can use DDMRP in concert with existing setups to create the most useful planning configuration for your business.
This ebook includes a self-assessment for any manufacturing company striving to reduce costs, improve quality and enhance productivity.
Clients First consultants have direct experience in the industries we support. The Clients First Texas office specializes in manufacturing, job shops, maintenance, repair, and overhaul (MRO) for aviation or heavy equipment organizations. We have customers in other industries, too, including make-to-order/engineering job shops, project manufacturing, field services, and wholesale distribution.
Nothing replaces a live presentation so please contact us to schedule a demonstration for your business. We support ProMRO with leading Cloud ERP solutions Acumatica and Microsoft Dynamics 365 Finance and Supply. We also support Dynamics 365 Business Central and have a deep knowledge of legacy ERP solutions like Dynamics AX (formerly Axapta) and Dynamics NAV (formerly Navision).
We’re a Microsoft Gold ERP Partner, a Certified Cloud Service Provider (CSP), and an Acumatica Gold Partner.
Please email our office in Dallas/Fort Worth, Texas, or call 800.331.8382. We're based in Dallas, Texas while servicing companies worldwide.
Additional Resources:
Solutions for the Supply Chain Breakdown
Mitigate Supply Chain Impacts with Manufacturing ERP
Six Supply Chain Transformation Trends for Manufacturers
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