MRP#2 - Choosing the Wrong Reordering Policy: The Fastest Way to Break MRP in Business Central

The Reordering Policy is the single most important MRP setting in Business Central — and the most commonly misunderstood.

Each policy fundamentally changes how demand is grouped into supply orders.

Common Mistakes

• Using Maximum Quantity for all items

• Using Lot‑for‑Lot without dampeners

• Using Order without understanding make‑to‑order implications

Why This Breaks MRP

MRP is not “smart enough” to compensate for poor policy choices. If the policy doesn’t reflect reality, neither will the plan.

Best‑Practice Guidance

• Lot‑for‑Lot → Low‑volume or high‑value items

• Maximum Quantity → Stock‑driven environments only

• Order → Genuine make‑to‑order scenarios

Reordering policy should always reflect how the item is actually supplied, not how it used to be supplied.