MRP did not generate cancellation suggestion for reduced BOM quantity

Description: The engineering team initially defined part code P212.00.746.50 in the BOM with a requirement of 12 units. MRP accordingly released a Purchase Requisition (PR) for 12 units, which was converted into a Purchase Order (PO) by the buyer. Subsequently, the engineering team revised the BOM quantity for P212.00.746.50 to 10 units. Despite the reduction in demand, MRP did not generate a cancellation suggestion for the excess 2 units. Normally, when demand decreases and supply exceeds requirement, MRP provides a cancellation recommendation. In this case, however, the pegging message indicates otherwise, and no cancellation suggestion was issued.

Impact: This may lead to over-procurement and inventory imbalance if cancellation suggestions are not triggered when demand is reduced.