MRP and CBP Steps

MRP is a planning tool to help production and procurement process.
The main function of MRP is to ensure the availability of the required quantity of materials
at right time
 Types of MRP:
1) Traditional MRP
This is we do while doing MTO and MTS scenarios. If there is shortage of stock, system
will propose procurement
2) Consumption Based Planning

It is a procedure based on past consumption values that determine future
requirement by using forecast or other statistical procedures.
 There are 3 procedures in CBP, which are:

1) Reorder Point Planning
In Reorder Point Planning, SAP checks whether available stocks are below
the reorder point that has been set for the material. If they are, SAP will
create procurement proposal
2) Forecast based Planning:
Here, historical data is used in the material forecast to estimate future
requirements.
3) Time-Phased materials Planning:
Here, historical data is also used in the material forecast to estimate future
requirements. However, in this procedure, the planning run is only carried
out according to predefined intervals. If a vendor always delivers a material
on a particular day of the week, it makes sense to plan this material
according to the same cycle, in which it is delivered.
 Configuration:
 SPRO – MM – CBP – Plant Parameters – Carry out Overall

Maintenance of Plant Parameters
 SPRO – MM – CBP – MRP Groups – Carry out Overall Maintenance of
MRP Groups
 SPRO – MM – CBP – MRP Groups – Define MRP Group For Each
Material Type
 SPRO – MM – CBP – Master Data – Define MRP Controller
 MRP Controller is who control the all planning activities
 SPRO – MM – CBP – Master Data – Check MRP Types
Standard MRP Types are: R1, VB, VM, VV
 SPRO – MM – CBP – Master Data – MRP Areas – activate MRP for
MRP Areas
 Activate MRP Area
 SPRO – MM – CBP – Master Data – MRP Areas – Define MRP Areas
 SPRO – MM – CBP – Planning – Lot size calculation – Define Lot-
Sizing Procedure
 Click on MRP Lot Size
 Use EX – Lot for lot order quantity and FX – Fixed order
quantity, MB – Replenish to maximum stock level
 Process:
1) Create Material – select MRP Views, Forecasting view with other views
2) Under Forecasting tab, you can add past consumption. After entering values, click on
execute forecast. Reorder Point will be set automatically. Select MRP type = Reorder
Point
3) Now whenever material is less than reorder point, run MRP Run. This will generate
Purchase Requisition.
 Forecast Based Planning –

1) In this also same process. Select MRP type as a forecast based planning.
 MD02 - MRP Run for Single Item, multi-level
 MD01 – MRP Run for All materials in Plant
------------------------------------------End---------------------------------------------
Consumption Based Planning -
In CBP, we will set forecast data for material. Then system will calculate reorder point
automatically. Whenever stock of that material goes below reorder point, system will
generate purchase requisition.
Lead time is time between creation of purchase requisition and receiving of goods.
Pre-requisites –
- Material Master Data – MRP1 View
- MRP type – V1
- Define Reorder Point
- Define MRP Controller
- Define MRP Lot size – HB
- Define Maximum Stock Level
After Maintaining all, check stock in plant

Then MRP using md02
So whenever material goes below reorder point, system will generate purchase requisition
after MRP Run.
SPRO > Materials Management > Consumption-Based Planning > Procurement Proposals >
Define Order Profile (here you can set NB Order Type for Standard Purchase Order and you
can set Special Transfer too, like Stock Transfer between Plants).
Now, go to SPRO > Materials Management > Consumption-Based Planning > Procurement
Proposals > Define Conversion of Planned Orders into Purchase Requisitions...and so on.
MRP controller – Person name who requested goods after running MRP Run.
After running MRP Run, PR will get created .
So In Purchase Requisition, you can see in item detail, contact person tab.
That is nothing but MRP Controller.

MRP and CBP Steps

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MRP is a planning tool to help production and procurement process.

2) Consumption Based Planning

 There are 3 procedures in CBP, which are:

 SPRO – MM – CBP – Plant Parameters – Carry out Overall

 Forecast Based Planning –

Consumption Based Planning -

After Maintaining all, check stock in plant

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