Why your MRP is insufficient in the real word of S&OP and what do do about it | Ep. 21

Do you actually trust the MRP output you get every day, or are you stuck with unrealistic plans and constant firefighting?

In this episode of the S&OP MasterClass, host Søren Hammer Pedersen is joined by Roima colleague Benjamin Obling, who brings 16 years of experience in inventory, demand, supply planning, and IBP, for a deep dive into one of the most critical engines in supply chain execution: MRP.

They explain why MRP often becomes unstable in real-world complexity such as BOM levels, lead time variation, MOQs, capacity rules, and multiple factories or ERP systems. They also walk through the warning signs and the business impact when MRP is not under control, including lost sales, excess inventory, air freight, and frequent changeovers.

Most importantly, they share practical ways to diagnose and stabilize MRP. Topics include timestamping MRP outputs to improve transparency, fixing key inputs where data quality drives outcomes, and using a direct-derived demand view to separate stable consumption from MRP-driven volatility. If supplier forecasts keep changing and planners spend too much time correcting proposals manually, this episode is highly relevant.

In this episode, you will learn about:

1. Why MRP is a critical link between S&OP decisions and execution in daily operations
2. Common signs that MRP is producing unrealistic and costly plans
3. Why rule-based MRP struggles in complex and constraint-heavy environments
4. How to analyze MRP volatility using locks, timestamps, and BOM-level tracing
5. A practical approach to stabilizing supplier and capacity views using direct-derived demand
6. How to prioritize master data fixes without launching an endless cleanup effort
7. Where scenario planning and rough-cut capacity planning can support better decisions before changes reach ERP and MRP

Episode content
00:00 Welcome and why MRP matters
01:05 Meet Benjamin Obling, IBP and supply chain planning expert
02:10 How MRP turns S&OP decisions into execution
03:35 When MRP works and when complexity breaks it
05:25 Red flags: unrealistic plans and manual firefighting
07:05 The business cost of poor MRP output
08:30 How MRP becomes a black box over time
10:40 Diagnosing MRP volatility with locks and timestamps
12:35 Fixing the inputs: forecast, safety stock, MOQs, lead times
15:10 Prioritizing master data fixes by impact
18:05 Direct-derived demand vs. MRP noise
21:10 Better decisions with rough-cut capacity and scenarios

Production
This podcast is brought to you by Roima.
This podcast is produced by Montanus.