SAP Material Management

Material Requirements Planning (MRP) is a standard supply planning system to help businesses, primarily product-based
manufacturers, understand inventory requirements while balancing supply and demand. Businesses use MRP systems,
which are subsets of supply chain management systems, to efficiently manage inventory, schedule production and deliver
the right product—on time and at optimal cost..
MRP gives businesses visibility into the inventory requirements needed to meet demand, helping your business
optimize inventory levels and production schedules.

VD -Manual Reorder Point Planning

MRP produces order proposals when stock falls below a ‘’Reorder Point ‘’.The reoorder point and safety stock levels are entered manually .

VM-Automatic Reorder Point Planning

The reorder point and safety Stock level are calculated based on the forecast results .

VV- Forecast Planning

The latest forecast is copied as requirements which are used to create order proposals

Deterministic Planning
MRP produces order proposal(s) to match the exact quantity of the requirements based on independent and dependent demands .

Master Production Scheduling

Smilar to PD but used for master schedule items .

MRP Steps
MRP Views
 MRP View 1

MRP Profile control the MRP group/MRP type/MRP controller.

Key that you can use to store MRP parameters that are independent of the material master recordIn

And MRP profile, you define

 which fields are filled with values when MRP data is entered in the material master record,
 which values these fields have,
 Which of these values can be overwritten and which not.

Use
The information stored in a profile is standard information that is needed again and again in similar constellations when material masterrecords are
maintained. Thus the MRP profile is a useful entry aid and makes it easier to manage MRP data.

MRP group: SA01

The MRP group contains all the material from the point of view of MRP for assigning special control parameters forThe total
planning run. These control parameters include, for example, the strategy group, the consumption mode, And the planning
horizon.
For each MRP group, control parameters can be created for total planning in Customizing for MRP whichDeviate
from the plant parameters.

If this field has not been maintained, the system uses the material type instead of the MRP group. In this case, the
type has to be maintained as the MRP group in material Customizing. In this step, you can carry out the total maintenance ofthe
MRP groups and you can allocate a material type to an MRP group.
 The MRP group is an organizational object that can be used to allocate special control parameters for planning to a group of materials. Youcan maintain
MRP groups if planning control per plant is not precise enough for your requirements and you want to allocate certain material
groups different control parameters from the plant parameters. For this purpose, MRP groups are defined with these specific controlparameters and
are assigned to the material in the material master record (MRP 1 screen).

For example, the following control parameters can be set for the total planning run:

 the creation indicator for the Planning run (creation of purchase requisitions, MRP lists, and so on)

 the planning horizon

 The consumption mode, the following is valid for total planning and single – item planning.

1. for all materials without an MRP group, the system uses the plant parameters, or the entries in the initial screen of the planning run
2. For all materials with an MRP group, the system uses the parameters recorded in the MRP group.

MRP Type: PD

Key that determines whether and how the material is planned.

 Manual reorder point planning
 Automatic reorder point planning

In this work step, you define MRP groups per material type. This method of maintaining the MRP group should be used if the controlparameters
or the planning strategies specially refer to material types.
If MRP groups have been maintained that specifically refer to material types, the appropriate MRP type is automatically proposed in thematerial
master record (MRP 1 screen).

Actions

Assign material types to MRP groups.

You use the MRP type to assign the procedure to be used to plan a material and to control which MRP parameters can be maintained forthe material in
the material master record. You enter the MRP type in the material master record.
The following parameters of the MRP type are relevant for MRP:MRP

Procedure.

The MRP procedure defines which of the following MRP types is to be used:
 MRP Controller:

Specifies the number of the MRP controller or group of MRP controllers responsible forMaterial
planning for the material.

The person responsible for a group of materials in a plant or company.

A material that takes part in material requirements planning must be allocated to an MRP controller.

The MRP controller is a person or a group of persons responsible for monitoring material availability. You can use the number
entered here, for example, to select the planning results per MRP controller.

Every material that is relevant to the planning run must be assigned an MRP controller number in the material master record.

An overview of a screen of MRP controllers shows as follows:

 MRP VIEW 2 :

Procurement type:

Indicator that defines how the material is procured. The following procurements types are possible:
 The material is produced in-house.
 The material is procured externally.
 The material can be both produced in-house and procured externally.
 The procurement type is defined by the material type you have chosen
 Issue storage. Location:

In the case of a material produced in-house, this is the key of the storage location that is copied to the planned orders, production orders, orrun schedule
quantities.

If the material is a component, it is the issuing storage location to which a back flush is posted.

 If the material is produced, it is the receiving storage location to which the receipt of the material is posted.

Scheduling Margin Key:

Scheduling Margin Key Floats:

Key that the system uses to determine the floats required for scheduling an order. You define the following floats with the scheduling marginkey:

 Opening Period
 Float after production (only in the case of in-house production) Number of working days between the schedule finished date andthe order
finished date, used as a float as production scheduling.

 Float before production (only in the case of in-house production) number of working between the order start date and thescheduled
start date, used as a float in production scheduling.

 Release period (only in the case of production order management) Number of workdays between the planned start date and the date for
releasing the order. If the order release indicator is set, the production order is released by the background program thattakes all data into
account. Floats are maintained in workdays.

*** You maintain the floats grouped together in the scheduling margin key in "Requirements Planning" Customizing.
 MRP VIEW 3:
Planning Strategy group:

The strategy group groups all the planning strategies that can be used for a particular material. The planning strategy represents the
procedure used for planning a material and is (technically speaking) controlled by the MRP types.

You define planning strategies and strategy groups in Customizing for demand management.

Checking group for availability check:

This field has two uses:

1. Specifies whether and how the system checks availability and generates requirement for material planning.
2. In Flexible planning, defines-together with the checking rule- the different MRP elements that make
up thiskey figure. The sum of these elements gives the key figure.
 MRP VIEW 4 :

Selection Method:

This key identifies the method for selecting Alternate Bills of Material:

Indicator determines the selection of the alternative BOM when requirements are exploded in MRP.

 With selection by order quantity, the system chooses the alternative BOM into whose lot size range theorder
quantity falls.
 With selection by explosion date, the system chooses the alternative BOM into whose area of validity thedate
falls according to the setting BOM via dates.
MRP dep. Requirement:

This indicator controls whether dependent requirements are relevant to MRP or not. Dependent requirement include dependent
reservations and stock transfer requirements.

You only use this indicator in connection with planning strategies for make-to-stock production, assembly planning. Note that the indicator
Dependent requirements not relevant to MRP should only be used when, for example, planned independent requirements exist for an
assembly. In this case, no receipt elements for the dependent requirements in MRP should be created as receipts have already been created
for the planned independent requirements.

Component scrap in percentage:

Percentage of scrap that occurs during production of the material if the material is a component.

Component scrap is used in MRP to determine the quantities of components required. When exploding the bill of material(BOM), the system
increases the quantities of the components by the calculated scrap quantity.

Example

Required quantity 200 pieces

Component scrap 10%
Scrap quantity 20 pieces

Therefore, 220 pieces are required.

If there is also assembly scrap for a higher level assembly, the system adds together the two types of scrap.

If component scrap has been entered in the BOM, this value applies.otherwise, the value specified in the material master record is used.