MRP Concepts SAP

8/10/2019 MRP Concepts SAP

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MATERIALS REQUIREMENT PLANNINGCompares

available stock + scheduled receipts

with

planned independent requirements +reservations+sales orders



MRP inputs and outputs

MRP

Planned Orders

Rescheduling Messages

Demand

Stocks

Bills of Material

Item Parameters• Exception

Messages



MATERIALS PLANNING PROCEDURES

• CONSUMPTION BASED PLANNING• MASTER PRODUCTION SCHEDULING• MATERIALS REQUIREMENT PLANNING



CONSUMPTION BASED PLANNING• REORDER POINT PLANNING

– manual – automatic

• FORECASTE BASED PLANNING• TIME PHASED PLANNING

–

for B & C class items – no in house production – uses historical consumption data for planning



Reorder Point Planning

Reorder Point

Safety Stock

Order Date Delivery DateTime

Stock



Regenerative Planning vs NetChange

• Regenerative Planning processes all items in the database.

• Net Change Planning only processes those items that had changes sincethe last planning run.

• Example of changes: - stock increase/decrease• - new requirements by planned orders• - change of lot size parameters• - etc., etc.



MRP Prerequisites

Activated for MRPPLANT LEVEL

MATERIAL LEVELValid MRP Type

Valid Material Status

MRP Views MaintainedMRP Controller Planned Lead TimeMRP GroupLot Size Data



Material Master – MRP Key FieldsBasic, General, and Lot Size Data

Procurement Type indicates if the material is externally procured, orproduced internally or both.

Special Procurement identifies special planning rules which may beused for in-house production or external procurement

MRP Type determines how the material is planned such as MRP, MPS,or consumption based planning

Material Lead Time identifies for material planning the planneddelivery days or in-house production days

Lot Size determines which lot-sizing procedure the system uses tocalculate order quantities



Material Master – MRP Key Fields• Scheduling Parameters • Planning Time Fence: defines a period during which MRP/MPS will not

automatically add or reschedule orders• Scheduling Margin: controls the release period, opening period for a

material and scheduling floats for production

– Release period is the number of working days in the release period – Opening period is the number of working days between the order

creation and planned start date – Order floats allows for safety margin before and after production

• Planned Delivery: lead-time for purchased material• In-house Production: lead-time for manufactured material• GR Processing Time: goods receipt processing time

– Example: dock-to-stock time



Material Master – MRP Key FieldsPlanned Delivery: lead-time for purchased material

In-house Production: lead-time for manufactured material

GR Processing Time: goods receipt processing timeExample: dock-to-stock time

Availability Check indicates whether the system generates individual orsummarized requirements for sales orders for this material and for planning,

which MRP items the system includes in the availability check.

Mat./PPC Status is used to limit the usability of materials for certain activitiessuch as, purchasing, bills of material



• Material Master MRP Key Fields• Consumption Mode: controls consumption of planned independent

requirements by customer requirements Selections: backward, forward, or both

•

Consumption Periods Backward/Forward: specifies the number ofperiods of forward or backward consumption – Used in conjunction with consumption mode

• Storage Location MRP • MRP Indicator: determines whether or not requirements, for a

specific storage location, are planned separately from the overall plan• Reorder Level: used for storage location MRP• Replenishment Quantity: used for storage location MRP



Requirements date

Scheduling Margin Key :-

Indicator in the material master record that refers to a group of time intervals that are relevant to

material requirements planning.(Defines Various Floats)

ProductionTime

Float after

Production Float Before

Production

Opening Period

Release period

Requirements date TODAY



MRP TypesVB

VM

VV

PD

M0

Manual Reorder Point Planning :MRP produces order proposals when stock falls below a “reorder point”. Thereorder point and safety stock levels are entered manuallyAutomatic Reorder Point Planning :The reorder point and safety stock level are calculated based on the forecastresultsForecast Planning The latest forecast is copied as requirements which are used to create orderproposals

Deterministic PlanningMRP produces order proposal(s) to match the exact quantity of therequirements based on independent and dependent demandsMaster Production SchedulingSimilar to PD but used for master schedule items



LOT SIZING PROCEDURES static lot-sizing procedures- lot for lot order quantity- fixed lot size- replenish up to maximum stock level

period lot-sizing procedures- daily lot size, weekly lot size, monthly lot size- lot size according to flexible period lengths

(based on accounting periods)- lot size according to a planning calendar

(freely definable periods)

optimum lot-sizing procedures- part period balancing- least unit cost procedure- dynamic lot size creation- Groff reorder procedure



NET REQUIREMENTS

Safety stock

Shortage

Comparison

Warehouse stock

Lot size

Forecast requirements

Material reservations

Sales orders Fixed receipts eg Purchase

orders Firm order proposals

(planned orders

purchase requisitions) Safety stock



Net Requirement for MRP



Net Requirements-Grossrequirement



Net Requirement-Reorder Point





Back ward scheduling-In house production



Back ward scheduling – EX Procurement



Forward scheduling –EX Procurement



Calculating Prod. Dates (Lead Time Scheduling)



PLANNING FILELIST OF MATERIALS FOR WHICH A CHANGE RELEVENT TOREQUIREMENT PLANNING

TYPES OF PLANNING RUNS

REGENERATIVE PLANNING (NEUPL)(ALL MATERIALS WITH VALID MRP TYPES)

NET CHANGE PLANNING (NETCH )

NET CHANGE PLANNING IN PLANNING HORIZON (NETPL )



MRP RUN

• Total Planning• Online• Back ground•

Single item – Multi level• Single item – single level



MRP List MRP Controller

Group of Materialsfor which controller

is responsible

Controller’s MRPListing

Goods ReceiptGoods Issues

MRP Order Proposalsand Planner Messages

from MRP Planning run.

Planner can drill downto review material

movement activity



Stock Requirements List

Date MRP Element Supply/Demand Ref EM Quantity Available

01/01 STOCK 10001/08 ORDER Sales Order 25 7501/15 PL ORD 1000 120 05 100 17502/01 -----------------------------------------------------> Planning Time Fence

Stock Requirements List brings together all the supply orders, independentand dependent demands and stock balances for the material. MRP makesorder proposals to balance the supply/demand position for the material



MRPPlanningResult

MRP List vs Stock Requirements List

• The MRP List displays the result of the last planning run

• The Stock Requirements List displays the most up-to-date stock andrequirements situation

MRPPlanningProcess

Last planningrun results

Stock RequirementsList uses current data

Current Stock,Rqmts, Balances,planned Receipts,Issues

Documents

MRP Concepts SAP