Hi Sugan,
Q1: By implementing Time Fence, you are losing flexibility, so this goes against the service level, so is not going to avoid cutting sales. However, sometimes you still need to use a time fence in order to provide some stability to your supply chain (maximize the use of your production capacity, coordinate the component replenishment with your vendors, etc..).
Q2: Yes. It is in the MRP2 tab of the material master.
Q3: As coverage you can use different methods: coverage profile, safety time, safety stock, etc. The coverage profile is a key that needs to be predefined in advance. I will try to simplify the explanation. Suppose that your coverage profile says that you want to have 10 days of target coverage. If you have a constant forecast of 1000 CS per month and you have 20 working days in a month, this 10 days of target coverage will mean that you want to have 500 CS in excess of your forecast. So the MRP will plan to start the month with 1500 CS (1000 CS of forecast + 500 CS of coverage).
Q4: The Purchase processing time is the time that your pruchasing department requires to convert a purchase requisition into a purchase order. In your case, suppose that you need to have a material in your production line on Aug 23rd. In that case, because your GR processing time is 1 day, the delivery date in the purchase order will be Aug 22nd (so your vendor will deliver the material 1 day earlier). Now because your lead time is 5 days, the Purchase Order form will have to be sent to the vendor on Aug 17th (In this example your work the 7 days of the week). Finally, because you need one day to convert the requisition into a purchase order, then the release date of your requisition will be Aug 16th. Release date is the date in which the requisition should be converted into a PO.
Thanks and Regards,
Mariano
