Many ERP systems allow the exclusion of warehouses and/or locations from Material Requirements Planning (MRP). This is sometimes called a "non-nettable" location. Being able to exclude certain segments of inventory from the MRP analysis will be beneficial for some organizations where different classes of inventory may have different uses or statuses. There are times that on-hand balances may need to be ignored in the MRP analysis. Placing the items to be ignored in a warehouse or location that could be excluded from MRP will ensure the balances are considered as available.
