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  1. 1. Material Requirement Planning (MRP) S A P
  2. 2. MRP PROCEDUDRES <ul><li>There are two types of MRP procedures </li></ul><ul><li>We can define different MRP procedures for same material in different plants. </li></ul><ul><li>Material master should be enabled with the data of MRP and lot size. </li></ul><ul><li>The quantity of procurement is the result of lot-sizing procedure in the material master records. </li></ul><ul><li>There are three different types of lot-sizing. </li></ul><ul><li>Static lot-sizing, Period lot-sizing and Optimizing lot-sizing </li></ul>MRP based Consumption based
  3. 3. <ul><li>There are three types of consumption based planning: </li></ul>MRP Time - phased Planning Uses historical values in the material forecast to estimate future requirements. Forecast based planning The future requirement is calculated using the forecast on the basis of consumption values. Reorder point planning To arrive at reorder point we have to consider: Safety stock (cover for unplanned excess material consumption and possible requirement in case of delay in delivery). Present consumption or future requirement. Replenishment lead time.
  4. 4. <ul><li>There are two types of Reorder point planning: </li></ul><ul><li>Manual reorder point planning: MRP controller determine the reorder point manually. It uses MRP indicator VB. Here if the quantity is less than the reorder point, the procurement is triggered. </li></ul><ul><li>In automatic reorder point planning, system calculate reorder point using fore cast. </li></ul>Automatic reorder point Manual reorder point
  5. 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.
  6. 6. Possible procurement element of MRP <ul><li>Planned orders for in-house production. </li></ul><ul><li>Purchase requisitions (PR). </li></ul><ul><li>Scheduling agreements scheduled lines. </li></ul><ul><li>Source of supply in SAP ERP: </li></ul><ul><li>Plant (for stock transport orders), </li></ul><ul><li>Purchasing info record, </li></ul><ul><li>Contract, </li></ul><ul><li>Schedule agreement. </li></ul>
  7. 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.
  8. 8. The planning run can be total planning or individual item planning. <ul><li>Transaction code in MRP </li></ul><ul><li>MD01 Total planning online </li></ul><ul><li>MDBT Total planning back ground job </li></ul><ul><li>MD03 Single item single level planning. </li></ul><ul><li>We can run total run periodically, by selecting schedule periodically . </li></ul><ul><li>If we select single item single level planning the system plan the BOM level only for the selected material. </li></ul><ul><li>If we select multi level single item planning the system plans the level of the selected item and all the lower BOM levels. </li></ul>
  9. 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