Cin7 MRP Run: Independent vs Dependent Demand Explained

If you are on Cin7 Core and your MRP run keeps suggesting quantities you do not trust, start with the calculation. This walkthrough is for inventory businesses between $1M and $50M in revenue on Cin7 Core, QuickBooks Online, Xero, and a bill of materials structure that real production depends on. Ryan works through the output of a live MRP run in Cin7 Core. Not the setup, the output. He covers the five tabs the run produces, then opens the demand structure and shows exactly how independent demand, dependent demand, and current supply combine into the total demand figure that drives every suggestion on the screen. Most operators treat a suggested supply order as an instruction. It is not. It is arithmetic performed on settings you configured earlier. Independent demand comes from finished goods and from the reorder quantity and minimum before reorder values set at the product level. Dependent demand comes from wherever that item appears inside another item's bill of materials. If either of those is wrong, the suggestion is wrong, and the system will keep being confidently wrong every time you run it. The second half covers what happens when you accept a suggestion. Ryan confirms a purchase order and shows it populate with supplier details, shipping address, quantity, and price. He does the same for a transfer between locations. He also shows the setting that decides whether accepted orders land as drafts or as authorized orders, which is the difference between two approval steps and none. Key takeaways • Independent demand and dependent demand are different inputs, and only one of them comes from your bill of materials. • Reorder quantity and minimum before reorder settings at product level create independent demand on their own, including on components and containers. • Nothing is created in Cin7 Core until you tick the check box and confirm. Until then it is a suggestion. • Accepted supply orders land as drafts or as authorized orders depending on a setting made during MRP setup. • Suggested supply orders can be filtered by product, family, tag, category, brand, demand location, supply location, and order type. Chapters 00:00 - What the MRP Run Output Contains 00:25 - The Five Tabs of an MRP Run 01:00 - Activity Log, Warnings, and Errors 01:23 - Understanding the Demand Structure 01:30 - Independent Demand and Where It Comes From 02:51 - Dependent Demand and Bills of Materials 03:38 - Current Supply and Total Demand 03:50 - Reading the Suggested Supply Orders 04:35 - Accepting a Suggestion and Creating a Purchase Order 05:40 - Assemblies and Transfers 06:24 - Draft Versus Authorized Supply Order Status 07:01 - Filtering Suggested Supply Orders 07:55 - Wrap Up Read more on MRP and forecasting setup in Cin7 Core https://fiskalfinance.com/cin7-foreca... Book a Diagnostic Call https://fiskalfinance.com/book-a-call... Fiskal is a diagnostic systems partner for inventory businesses on Cin7 Core, QuickBooks Online, Xero, Shopify, and WMS. We trace reconciliation, inventory, margin, and workflow issues back to their source so the business can trust its numbers again.