Many ERP systems are familiar with the opening horizon mechanism. The opening horizon should represent the time that an MRP controller needs to convert a planned order, order proposal or production proposal from the ERP system into an order or production order. An opening horizon of one day therefore means that the order proposal is already displayed to the user one day before the order needs to be dispatched.
The opening horizon therefore serves to secure the time required for the administrative process before the actually required order date. The opening horizon can also be used to ensure that an order proposal is displayed in good time for items with very fluctuating replenishment times so that it can be ordered and delivered on time even if the replenishment time is currently extended.
Our tip:
In practice, the opening horizons are often set very generously, e.g. to one week. This means that the order proposal is displayed to the user one week before the actual requirement date and can then be implemented by the user. In this way, the opening horizon serves as a safety time to order as early as possible. Used in this way, it overrides the actual system settings and increases stocks.
You should therefore set the opening horizons in your ERP system carefully and not set them the same for all items.
