MRP (Material Requirements Planning) procedures involve defining different MRP procedures for materials in different plants and enabling the material master with MRP and lot size data. There are three types of lot sizing - static, period, and optimizing - that determine order quantities. MRP generates procurement proposals like planned production orders and purchase requisitions to ensure material availability based on consumption, forecast, or reorder point planning. Main functions of MRP are to ensure material availability and generate procurement proposals for purchasing and production.

1. Material Requirement Planning (MRP) S A P

5. Main function of MRP is to ensure material availability at requirement. MRP conducted at plant level. MRP generates procurement proposals for purchasing and production. Lot for lot order quantity: If we specify this procedure, system orders quantity if there is a material short fall. Fixed lot size: System uses fixed lot size as order quantity, if selected this procedure to cover the material short fall. System generates as many number of order proposals on the same date until the shortage is covered. Replenish up to the maximum stock level: System generate one order proposal for the quantity required to reach the maximum stock level defined in the material master.

7. A contract or scheduling agreement should be made MRP relevant by a source list in order to be pulled for automatic creation of scheduling agreement scheduled lines. Material Master should be enabled with the data of MRP and Lot Size.

9. Planned delivery time: time taken from issue of PO to receipt of goods from the vendor. Goods receipt processing time: Time required from time of goods receipt to complete action in the system as well as physically. Stock requirement list: A dynamic list, display current valid stock requirement situation of a material. Useful to evaluate planning situation. The MRP list: Is a static list which show the result of the last planning run. Thank you