1. MRP views in Material Master
MRP views required for Production Planning related data update.
MRP View 1
Q1: MRP view কেন প্রয় োজন material master এ?
Ans: Production purpose এর জনয সোধোরণত MRP view maintained েরো হ ।
MRP views are maintained mostly for production purposes. This information is
supplied by the appropriate MRP controller or someone else from production
planning team. The only mandatory field in MRP 1 View is Planning type. We will
cover the most important fields used in a productive environment in more detail.
Md. Shalehur Rahman Samy
Associate Consultant, SAPMM
IPE, Shahjalal University of Science & Technology.
Mobile : +8801725444492
Email : shalehur@gmail.com

2. 1.Base Unit of Measure:
The base unit of measure is the unit satisfying the highest necessary requirement for
precision. Unit of measure in which stocks of the material are managed. The system
converts all the quantities you enter in other units ofmeasure (alternative units ofmeasure)
to the base unit of measure.
( অর্থাৎbase unit of measure হল এমন unit যা দ্বারাক্ষু দ্রতম quantity এর material পররমাপ করাযায়এবং এটি সাধারণত alternative
uniteof measure এর চেয়য় চ াট হয় এবং system সব alternative unite of measure চক base unit of measure এconvert কয়র চেয়
)
Alternative Units of Measure:
Alternative units of measure can also be defined to identify packages or lager containers for smaller units
of measure such as cartons, boxes, bottles, barrels, pallets (storage unit types) and so on.
Procedure:
You define the base unit of measure and also alternative units of measure and their
conversion factors in the material master record.

3. Example:
When you create a new material in the system, for example, if you designate "piece" as the
base unit of measure and "box" as an alternative unit of measure, the system will display
a conversion window which asks you to define how many pieces are contained in a box.
1.Purchasing group: this field is used to indicate which purchasing group is the default
for purchasing this material. We haven't maintained it yet as this is a finished product of
our company, we don't need it to be purchased at any time. We will set up this field for
another material that needs to be purchased.
Q2: What is Purchasing group?
Ans: The purchasing group can be defined as a person or group of people dealing with
a certain material or group materials purchased bythrough the purchasing organization.
(অর্থাৎ purchasing organization এ কিছু person বা group of people আয় যারা রেরদথ ষ্ট material বা
group materials চক purchase করার দারয়ত্ব পালে কয়র, এয়দর purchasing group বলল। সাধারণত এিটি
plant এর under এ একারধক purchasing organization এবং প্রকতটি purchasing organizationএর
under এ একারধক purchasing group থালি। )
3.ABC indicator: This is an indicator showing the importance of the material in
terms of stock availability.( ABC indicator হল এক ধরনের indicator যা ককাে
material কক stock এ available রাখা উচিৎ তা matrial এর importanceএর উপর
চের্ভ র কনর numbering কনর indicate/show কনর।) Most of the companies use
several ABC values, but most common are:
A – the most important materials, they need to be available for sales in
every moment customer requests it,
B – less important materials that are often supposed to be available but
the lack of this material can happen and is allowed,
C – Least important materials.
There can also be few more categories, N – new, material not yet tested on the
market, so we don't actually know if it's going to be A, B or C yet. S – material

4. that is produced only on customer request,and D – sameas S with the difference
that it has a certain quantity on stock just in case someone needs it ASAP, in
production planning it is called a material safety stock.
4.MRP type: Key that determines whether and how the material is planned. You have the following
options:
A. Manual reorder point planning
B. Automatic reorder point planning
C. Forecast-based planning
D. Material requirements planning with forecasts for unplanned consumption
E. Master production scheduling (MPS)
there are various types of MRP that can be utilized. In this case, our MRP controller signalled that it
should be PD – default MRP for most of the SAP installations.( রবস্তাররত জােয়ত হয়ল MRP slide চদখয়ত হয়ব).
(A+B) Reorder point planning:
A reorder point is the inventory unit quantity which determines when a new order is placed.
(অর্থাৎ reorder point হল inventory এর চসই unit quantity, যা চকাে সময় purchase order চদয়া হয়ব তা
রেয়দথ শ কয়র।)
Graphically ককাে inventory কত future consumption এর উপর base কনর safety stock এর
সানে replenishment lead time কযাগ করনল reorder point পাওয়া যায়।

5. Equation:
Reorder point = Replenishment lead time + Safety stock
Or, Reorder point = Demand rate per period × Lead time + Safety stock
Or, R = dL + S
Safety stock is a part of Reorder point.
Example:
ABC company এর প্ররতরদে 10 units sugar লায়ে। আবার, ABC company তায়দর জেয sugar order করয়ল
supplier/vendor চদর তা রদয়ত 5 days লায়ে। stockচযে এয়কবায়রইblank হয়য় ো যায় (এমে ও হয়ত পায়র sugar
delivery রদয়ত supplier/vendor চদর 5 daysএর ববকিও লাগলতপালর) চসজেয ABC companysafety stock
রায়খ 20 units. তাহয়ল ABC company এর reorder point হয়ব=5×10+20=70 units.
Material orderকেয়া কেনক material
receive পযভন্ত মধযবতী সময়
It is the minimum levelof inventory
that is heldas a protectionagainst
storage due to fluctuationindemand.
এখানে, system past consumption data
(historical data) use কয়র future
requirement forecast কয়র।

6. Calculating Dynamic Safety Stock:
The system determines an average daily requirement of 15 pieces. You have defined a minimum range of
coverage of 3 days, a maximum range of coverage of 7 days and a target range of coverage of 5 days.
The system calculates the following:
Minimum stock level = 3 x 15 pieces = 45 pieces
Maximum stock level = 7 x 15 pieces = 105 pieces
Target stock level = 5 x 15 pieces = 75 pieces
The available quantity is 40 pieces and is therefore less than the minimum stock level.
Therefore, the system creates a procurement proposal for 35 pieces (= target stock level 75 pieces – actual
quantity of 40 pieces) during the planning run.
C. Forecast-Based planning:
A procedure in consumption-based planning that is based on future requirements predictions calculated
using the forecast.
(এটি হল একটি consumption-based planning procedure যা past এর consumptionগুয়লা forecasting
এর সাহায়যয calculate কয়র future requirement predict কয়র।)
It operates based on historical values and forecast values and future requirements are determined via the
integrated forecasting program. Forecasted values form basis for planning run and have direct effect in
MRP as forecast requirements. In the case of a shortage for forecast requirement, the system creates a
procurement proposal.
Forecasting সাধারণত 4types formula follow কয়র:
1. Model: Moving Average
2. Model: Weighted Moving Average
3. Model: First-Order Exponential Smoothing
4. Model: Constant
(রবস্তাররত জােয়ত http://help.sap.com/saphelp_46c/helpdata/en/a5/6320e843a211d189410000e829fbbd/content.htm)
You can specify the period pattern for the forecast (daily, weekly, monthly or per accounting period)
and the number of periods to be included in the forecast individually for each material. It is possible,
however, that the forecast period pattern is not specific enough for planning purposes. In this case, you

7. can define per material that the forecast requirements should be divided according to a finer period
pattern for planning. You can also define how many forecast periods are to be taken into account during
requirements planning. The splitting indicator is defined in Customizing for MRP per plant and per
period unit and is assigned to the material in the material master.
Example:
ধরাযাক, আপরে pastone year consumption এর উপর base কয়র forcastbased planning করয় ে।এয়েয়ে
system 12 months এর forecasted value automatically generate করয়ব। lot size plays crucial
role in consolidating the entire requirement.
I. Lot size এ আপরে যরদ “Ex” select কয়রে , তাহয়ল system প্ররতটি month এর forecasted values
এর জেয individual purchase requisition (১২ টি) করয়ব।
II. আর Lot size এ আপরে যরদ “Yr” select কয়রে , তাহয়ল 12 months এর forecasted values এর জেয
only one purchase requisition করয়ব।
Problem:
I am having the requirement from client, that MRP should be triggered based on the ( Plant available
stock, safety stock, Planned delivery time and past 3 months sales). I know VV-Forecast planning,
but i want to know how system is calculating this forecast. so pls clarify the MRP Forecast based
planning(VV) for trading material with a complete example.
1) I have created a Trading Material with MRP views and Forecast View
2) MRP 1 view: MRP type-VV, MRP controller-001, Lot size-EX,
3) MRP 2 view: Proc type:F , Planned delivery time: 45 days, GR Processing time: 2 days, safety
stock: 10, service level :1%
4) MRP 3 view: Period indicator: M
5) Forecasting view: Forecast model: D, History period: 3 months, Forecast period: 3 months,
Consumption values for 3 months:
03.2012 - 40 EA
02.2012 - 50 EA
01.2012 - 60 EA
Now with this data
1) i just want to know how the system will calculate the forecast values for the first time ?
2) From second time onwards system will take History of sales from system itself?
Solution:
For VV MRP type, in standard SAP, the forecast (based on total consumption) is obligatory meaning
you will have execute forecast using MP30/MP38 on a defined frequency say Monthly in your case.
Once you are done with this, you will see the MRP element 'ForReq' in your MD04 list for the next
3 months in your case as 04/05/06 2012.

8. After this when you run MRP (MD01/MD02) it follows the formula(for Forecast based planning),
Available stock = Plant stock - safety stock + Receipts (Purchase orders and Firmed purchase
reqs) - Requirements(Forecast requirements).
When Available stock is negative it creates the procurement proposals.
Based on your consumption of your VV material against a production order for instance the
consumption values can be seen getting updated in the forecast view of the material master. The
261/201 movement types get in there as total consumption against your monthly buckets as relevant
to the date of consumption and which form the basis of your future forecasting and the subsequent
MRP runs based on the rolling planning horizon.
You will also observe that when ever there is a consumption your Forecast requirements are also
consumed accordingly in MD04
Q3.What is the difference between MRP and MPS in SAP MRP type?
Ans:
MPS use করা হয় critical resources/ materials এর জেয।
MRP use করা হয় all material এর জেয ।তয়ব SAP এর চেয়ে চযগুয়লা MPS এ চেয়া হয়য়য় চসগুয়লার MRP চত চেয়া যায় ো।
Example: ধরাযাক, একটি car এর জেয BOM বাোয়ো হয়ে –
BOM---1) engine (এটি critical resource তাই এয়েয়ে MPS রদয়ত হয়ব)
2)gear box
3)body (এ দুটি general material তাই এয়েয়ে MRP রদয়ত হয়ব)
Master Production Schedule (MPS) :
MPS operates within only one level of the BOM, While MRP can be utilized throughout all levels of
a material’s BOM. If a MPS is run on a material, the necessary orders are planned at that level.
Dependent requirements (if any) are placed on the next BOM level down, and then the process stops.
Main Idea : Master production scheduling (MPS) is a form of MRP that concentrates planning on the
parts or products that have the great influence on company profits or which dominate the entire
production process by taking critical resources. These items are marked as ‘A’ parts (MPS items) and
are planned with extra attention. These items are selected for a separate MPS run that takes place
before the MRP run. The MPS run is conducted without a BOM explosion so that the MRP controller
can ensure that the Master schedule items (MSI) are correctly planned before the detailed MRP run
takes place.

9. Material Requirements Planning (MRP) :
A set of techniques that uses bill of material data, inventory data, and the master production schedule
to calculate requirements for materials. It makes recommendations to release replenishment orders for
material. Further, because it is time-phased, it makes recommendations to reschedule open orders when
due dates and need dates are not in phase. Time-phased MRP begins with the items listed on the MPS
and determines
(1) the quantity of all components and materials required to fabricate those items and
(2) the date that the components and material are required. Time-phased MRP is accomplished by
exploding the bill of material, adjusting for inventory quantities on hand or on order, and offsetting the
net requirements by the appropriate lead times.
Master Production Schedule is the set of techniques uses for only one level of production
Material Requirements Planning is the set of tools that use for inventry data and master data
for the requirment of mareial
8.MRP controller:
The personresponsible for a group of materials in MRP in a plant or company. Material
that takes part in material requirements planning must be assigned to an MRP controller.

10. MRP controller responsible for production of this material, he manages all the data in
these MRP views, along with the MRP results itself, production planning for this material
etc.
Specifies the nusmber of the MRP controller or group of MRP controllers responsible for
material planning for the material.
9.Lot size:
In a production lot size model, we are a manufacturer, trying to determine how much to
produce(the productionlot size) during each productionrun.
Lot size defines the procedureused by the system in orderto calculate the procurement or
production quantity of the material.
A procedurein material requirements planning used to calculate order and production
quantities (lot sizes).
Lot-sizing procedures are divided into the following groups:
1. Static
2. Period
3. Optimum
ProductionPlanning and Detailed Scheduling (SCM-APO-PPS)
Procedurein production planning that is used to calculate the purchase order quantities
of receipts.
 In the SAP APO (Advanced Planner and Optimizer), the following standard lot-sizing
procedures are available, which can be configured in the location product master.
 Exact lot size
 Fixed lot size
 Period lot size
 Reorder point procedure
10. Ordering cost: Ordering costs are the expenses of ordering a new batch of raw materials. These
include cost of placing a purchase order, costs of inspection of received batches, documentation
costs, etc.
Ordering costs vary inversely with carrying costs. It means that the more orders a business places with
its suppliers, the higher will be the ordering costs. However, more orders mean smaller average
inventory levels and hence lower carrying costs.

11. It is important for a business to minimize the sum of these costs which it does by applying the economic
order quantity model.
Use:The ordering costs are used only for calculating the lot size in optimum lot-sizing procedures. You
must specify the ordering costs in the currency of the company code belonging to the plant.
Example:
AzerGas is a company engaged in gas distribution to households and businesses through its network of
pipelines in Azerbaijan. The company expands its pipelines every now and then. Installation of pipelines
involves use of specialized high quality pipes, customized valves and other spares and loose tools.
AzerGas has only a few suppliers who produce these customized tools. Azerbaijani government
regulations require the company to advertise in three national and two international newspapers before
placing a purchase order. This will cost $200,000 per order. The suppliers have to modify their own
production plans and they charge an amount of $2 million regardless of the size of order. The opportunity
cost of staff time spent on drafting the tender documents is estimated at $250,000. Related legal costs are
$50,000. In each procurement AzerGas hires a firm for inspection at a flat fee of $100,000. Bank charges
an amount of $3,000 as documentation charges.
In this situation, AzerGas ordering costs are $2,603,000 per order (advertisement costs of $200,000 +
customization cost of $2,000,000 + opportunity cost of staff time of $250,000 + legal costs of $50,000 +
inspection costs of $100,000 + bank charges of $3,000).
Since there are constant improvements in the related technology, the most significant related carrying
cost is obsolescence. Other carrying costs which AzerGas would have to trade-off against the ordering
costs include the opportunity cost of capital tied up in the expensive tools, the cost of wear and tear of
the tools, etc.
11. Rounding profile: Key that the system uses to adjust the order proposal quantity to deliverable
units. In Customizing, enter a threshold value from which the system should round up to the next value
per deliverable unit:
1. If the requirements value exceeds the first threshold value, the system always rounds up to the
next multiple of the level found.
2. If the requirements value falls below the first threshold value, the system copies the original
requirements value.
Examples :
A material's base unit of measure is 1 unit; the purchase order is to be delivered in layers (1 layer
corresponds to 5 units) or in pallets (1 pallet corresponds to 8 layers which contains 40 units).
You maintain the profile as follows:
From a requirements of 2 units, the system is to round up to 5; from a requirement of 32 units, the system
is to round up to 40.
This results in the following order proposal quantities:
Requirement from 1 -> 1 requirement from 31 -> 30
Requirement from 2 -> 5 requirement from 32 -> 40
Requirement from 6 -> 10 requirement from 74 -> 80

12. Requirement from 7 -> 10
If no rounding profile has been entered, the system uses the rounding value entered in the material
master record for the planning run.
12. Unit of Measure Group:Key that you can use for grouping several units of measure.
Use:
You can use the unit of measure group, for example, to define allowed units of measure for a particular
material for a vendor or a receiver. This is of significance for when rounding with the dynamic rounding
profile if 'check vendor' or 'check customer' is selected in the rounding profiles. In this case, only those
units of measure are included in rounding that are defined in the unit of measure group.
13. Takttime: Takt time is the desired time that it takes to make one unit of production output.
The usual takt time calculation is as follows:
Available production time per day Time
Takt time = -----—————————————— = ---------------
Customer demand per day Volume
(Takt time differs from cycle time, which is the actual time it takes to make one unit of production
output.
Cycle time= Actual time required for a worker to complete one cycle of his process.)
The systemuses the takt time if a requirement is coveredby several receiptelements
due to restrictions onlotsize suchas maximum lot size (with all lot-sizing procedures)
or rounding value (with fixed lot size with splitting). You enter the takt time in
workdays.
14. Rounding value:
Value to a multiple of which the system rounds up the procurement quantity.
(General: Rounding a numerical value means replacing it by another value that is approximately
equal but has a shorter, simpler, or more explicit representation; for example, replacing £23.4476 with
£23.45, or the fraction 312/937 with 1/3, or the expression √2 with 1.414.).
The rounding value is used in the planning run if no rounding profile has been specified
in the material master record.
Example:

13. Minimum lot size : This is Minimum lot size for which requirement will be generated through system
(MRP) . If your minimum lot size is 50 & although requirement is of 30 nos, System will generated
schedule lines for 50 nos.
Rounding Value : When define rounding value in Material Master system will automatically generate
schedule lines as per rounding value for ex we have set
0 to 25 = 25 nos & 26-50 =50 nos then even the requirement is for 20 & 35 schedule lines will be
generated for 25 nos & 50 nos respectively.
MRP View 2
MRP view 2 contains data about Procurement, Scheduling, and Net requirements calculation.

14. 1.ProcurementType
Indicator that defines how the material is procured. The following procurements types are possible:
1) The material is produced in-house.
2) The material is procured externally.
3) The material can be both produced in-house and procured externally.
Use:
The procurement type is defined by the material type you have chosen.
Q4. What is Scheduling?
Scheduling is the process ofarranging, controlling and optimizing work and workloads
in a production process ormanufacturing process. Scheduling is used to allocate plant
and machinery resources, plan human resources, plan production processesand
purchase materials.
Q5. Scheduling চকে করা হয়?
Traditionally, scheduling algorithms were used in capital intensive production processes
where there was a need to optimize the production because the plant capacity was
constrained and there were different lines ofproducts varying forthe same manufacturing
plant resources.
With warehouse operations getting more complex and automated over the years, a similar
need is felt to schedule some of the warehouse jobs using these algorithms to optimize the
use of resources such as cranes, conveyors, labelers and pickers deployed in the
warehouse to maximize the throughput.
Types of scheduling algorithm:
Most commonly used algorithms for scheduling order dispatch or releases are:
 Forward Scheduling
 Backward Scheduling
 Bottleneck Scheduling
 Shortest Processing Time Scheduling
Forward scheduling:
Suppose, আমার material available আনে but delivery date কনব হনব কসটা জাচেো।এই
delivery date চহনসব করার জেয forward scheduling করা হয়।
Backward Scheduling:

15. Suppose, আমার delivery date জাো আনে but কনব কেনক কাজ শুরু করনল ঐ date এ
কাজ কেষ হনব, কসটা চহনসব করার জেয backward Scheduling করা হয়।এটা purchasing
& sales েুই কেনেই হনত পানর।
Backward scheduling is the calculation of deadline dates: the arrival time at the customer site is
calculated as the earliest possible goods receipt time at the customers unloading point on the requested
delivery date. All four of the delivery and transportation scheduling lead times are subtracted from the
customer's requested delivery date to determine if this date can be met.
The transit time, loading time, and pick/pack time are subtracted from the requested
delivery date to calculate the required material availability date.
The system calculates backward scheduling as follows:
Requested delivery date minus transit time = Goods issue date
Goods issue date minus loading time = Loading date
Loading date minus transportation lead time = Transportation scheduling date
Loading date minus pick/pack time = Material availability date

16. By default, the system will calculate delivery dates the closest day, taking into consideration the working
days of the shipping point and a rounding profile. In this case the system assumes a 24 hour work day
and lead times can be entered in days up to 2 decimal points. This is referred to as daily scheduling.
Precise scheduling calculated down to the day, hour and minute is supported. This allows the scheduling
of a delivery within a single day. It is activated by maintaining the working hours for a particular
shipping point.
Backward scheduling is always carried out first. If the material availability date or transportation
scheduling date is calculated to be in the past, the system must then use forward scheduling.
Forward scheduling is also done if no product is available on the material availability date calculated by
backward scheduling. The system does an availability check to determine the first possible date when
product will be available. This new material availability date forms the starting point for scheduling the
remaining activities. The loading time, pick/pack time, transit time, and transportation lead time are
added to the new material availability date to calculate the confirmed delivery date.
2.Productionstorage location:In the case of a material produced in-house, this is the key of the
storage location that is copied to the planned order, production order, or run schedule quantity.
 If the material is a component, it is the issuing storage location to which a back-flush is posted.
(অর্থাৎ BOM এ চয material গুয়লা finish material বাোয়োর জেয component রহয়সয়ব use করা হয়, চস material
গুয়লা storage location পাঠায় যখে BOM এ back-flush করা হয়)
 If the material is produced, it is the receiving storage location to which the receipt of the material
is posted. (অথথাৎ যকি material produced িরা হয়, তলব আলগ চযখায়ে material post করা হয়য়র ল চসখায়ে এই
material storage location receive কয়র।
3.Back flash: Backflushing is automatic accounting (Goods issues - 261 mvt) of material
consumed forproduction, at the time ofconfirmation. Backflushing is nothing but automatic
goods issue. System will automatically posts the goods issue when you confirm the
operations. You have no need to make manual issue. It will reduce the effort.

17. “যখে production এর জেয raw material, semi-finish material and packing material বযাবহারকরা হয়, তখে
STORAGE LOCATION চর্য়ক material কময়ত র্ায়ক”। Back flush এ click করয়ল system automatically
STORAGE LOCATION চর্য়ক material কমায় । অর্থাৎ automatic good issue হয়য় যায়।
4.Inhouse production date:
5.Goods Receipt Processing Time in Days: Number of workdays required after receiving the
material for inspection and placement into storage.
6.Schedule margin key: This represents a key used for determination of the floats required for
scheduling an order. It is defined in customizing and is supplied by your MRP controller or PP
administrator.
Key that the system uses to determine the floats(ভাসমাে অবস্থা/সময়)required for scheduling
an order. You define the following floats with the scheduling margin key:
1) opening period
2) float after production (only in the caseof in-house production)
3) float before production (only in the case of in-house production)
4) release period(only in the case of production order management)
Floats are maintained in workdays.
7.Planneddelivery time in days: Number of calendar days needed to obtain the material or service
if it is procured externally.
If you have different vendors for a material, you must specify an average value. The same applies if you
order the material from a fixed vendor that has varying delivery times.

18. MRP View 3
MRP view 3 contains several valuable fields mostly used by planning functions.
1.Period indicator: Indicates if material is to be planned/forecast monthly, weekly, yearly, daily
etc. This is in most cases set to monthly.
2.Strategy group: The strategy group used for grouping the planning strategies, for example,
this can be set to Make to Order, Make to Stock etc. There are a number of options, and this must be
defined by the production planning management.
You define planning strategies and strategy groups in Customizing for demand
management.
3.Consumption mode: this controls how system will consume requirements. In backward mode
sales, orders, dependent requirements or material reservations consume planned independent
requirements that lie before the requirements date while in forward mode they consume planned
independent requirements that lie after the requirements date.

19. 4.Forward consumption period: Determines number of day used as a consumption threshold
(আরম্ভ ) in forward consumption mode. Can be set from 1 to 999 days but usually not longer than several
days. We are using 0 since we are utilizing backward consumption mode for this material.
5. Backwardconsumption period: Same as previous except it is used for backward
consumption mode.
6.Mixed MRP: Defines whether the material is available for:
 Subassembly planning with final assembly
 Gross requirements planning
 Subassembly planning without final assembly
A deterministic procedure in material requirements planning.
In gross requirements planning, no comparison is made between the warehouse stock and gross
requirements. These requirements are covered by order proposals.
7.Availability check: Specifies whether and how the system checks availability and generates
requirements for materials planning.
(এটি একটি essential attribute যা stock availability check করা হয়ব চকাে method এ তা রেয়দথ শ কয়র। These
methods are defined by customizing team, and can include stock on storage locations, can be also set
up to include quantities on process and production orders, planned orders, quantities in the transfer
towards the plant from which sales is being processed, etc.)
The value you enter is a default value which defines:
 Which MRP elements (for example, purchase orders, reservations) the system includes in the
availability check.
 Whether the system checks availability only until the end of the replenishment lead time or
whether it checks availability over the entire period for which MRP elements exist.
 Whether the system generates individual requirements or summarized requirements if you
enter sales orders or deliveries for the material.

20. MRP 4 View
This is the only MRP view that is maintained on Plant / Storage location organizational level. It
doesn't contain as much valuable fields as previous, but there are three handy indicators that can
be used to optimize processes in some modules.

21. Q6.Alternative BOM চকে করা হয়?
ধরাযাক, একটি finish material এর BOM এ raw material, packing material এবং semi- finish material লায়ে। তাহয়ল
finish material এর BOM হয়বেঃ
এখে যরদ ঐ semi finish material টি stock এ ো র্ায়ক তাহয়ল ঐ semi finish material টি ততরর করয়ত হয়ব। তখে semi finish
material এর BOM হয়বেঃ
এ কারয়েই alternative BOM এর প্রয়য়াজে পয়ে। যরদ stock এ semi finish material টি র্াকয়তা তাহয়ল alternative BOM
এর প্রয়য়াজে হয়তা ো।
1.Selection method: If you need alternative BOM for your production, you could select the
alternative BOMs with this field.
Use:
1. With Selection by order quantity, the system chooses the alternative BOM into whose lot size
range the order quantity falls. The lot size range and area of validity of the BOM apply.
2. With Selection by explosion date, the system chooses the alternative BOM into whose area of
validity the date falls according to the setting BOM via dates.
3. With Selection by production version, the system chooses the alternative BOM defined in the
valid production version. The lot size range and area of validity of the production version apply.
4. With Selection only by production version, the system chooses the alternative BOM defined in
the valid production version. The lot size range and area of validity of the production version
apply.If no production version is found, no production orders or process orders can be created.
3.Discontinuationindicator: Identifies the material as a part to be discontinued and includes it in
the discontinued parts procedure in materials planning.
Use:
If this indicator is set, the system transfers the dependent requirements in materials planning to the
follow-up material if they are no longer covered by warehouse stocks. However, this requires:
Finish material
Raw material Packingmaterial semi finish
material
simi finish
material
Raw
material
Raw
material
Raw
material

22.  The part to be discontinued and the follow-up material to be planned using material requirements
planning (MRP).
 The base unit of measure of the follow-up material to be the same as that of the part to be
discontinued.
3.StoragelocationMRP indicator:This is the most powerful indicator on this view. It tells us if
our storage location (that we used in organizational levels screen – in this example 0001 – Lager 0001)
is relevant for MRP. That is highly significant as it can reflect not only MRP but also ATP (available to
promise) quantities.
For example, if we use the default value (empty field), it means that our storage location is taken into
account in our MRP runs. It is also taken into account in ATP so sales department can see the stock on
this location available for sales activities. On the other hand,
1. If you choose indicator 1 – Storage location stock excluded from MRP, this stock will not be
taken into account for the MRP run, as well as it won't be available to promise (ATP) to the
customer, so it couldn't be sold.
2. If you choose indicator 2 - Manage storage location separately, it means that you want to manage
this locations stock separately from plant stock (useful in some rare cases).
The most obvious example for usage of this function is rejects storage location. When our LCD TV 40"
comes out of the production line it can be fully functional, or it might have a flaw. If it is ready for sales
we will transfer it to our 0001 location and sales department will see that quantity available to be sold.
Let's say we produced 3000 TV sets. Out of that quantity there is 10 TV sets with some problems and
our quality control department chooses that those cannot be sold, so these are sent to our location 0003
for rejects. In MRP 4 view, we have to maintain the indicator 1 for our rejects location 0003 as we don't
want sales department to see the stock as available. We only want the other 2900 pieces available that
are on the 0001 location, for which we maintain empty field for this indicator (include in MRP/ATP).