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Where an organisation has multiple warehouses, its often a requirement to store products based on the storage location capacity. Whilst you can get MRP to recommend transfer orders for moving stock between locations to ensure safety/min stock levels are met, this is more of a replenishment management approach rather than a capacity management approach.

For example if a master planning demand means that the expected supply of a product that exceeds the available storage capacity at the expected arrival location, then the planned order(s) should split and create an additional planned order for the balance looking for the next nearest location based on its capacity and sequence in the warehouse hierarchy thereby planning and maximising the use of the available storage capacity geographically, rather than having the planned order delivered to a single central point and using transfer orders to move the stock to other warehouses.
Category: Planning
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