Run Material Replenishment Planning (MD01)

Purpose
Use this procedure to run the replenishment requirement of all materials at a plant. Each
plant will determine the frequency of running MRP - every other day, once a week. The
purpose of MRP is to ensure the right material arrives at the right place at the right time.
The MRP run is used to automatically generate planned orders or purchase requisitions
enabling the replenishment of materials depleted by consumption and the planning of
known requirements. The system tries to achieve a balance between optimizing needed
materials and minimizing costs by keeping inventory levels at a minimum and having no
stock outages.

Trigger
Perform this procedure when a plant has the need to restock materials on their shelves. All
plants will start with the reorder point planning method. In reorder point planning,
procurement is triggered when the sum of plant stock and firmed receipts falls below the
reorder point. The reorder point should cover the average material requirements expected
during the replenishment time. Safety stock exists to cover both excess material
consumption within the replenishment time and any additional requirements that may occur
due to delivery delays. Therefore, the safety stock is included in the reorder level.
In manual reorder point planning, both the reorder level and the safety stock level are
defined manually in the appropriate material master. The use of past consumption data
(historical data) can be used to set reorder point levels. The material master is where the
values for the reorder point (MRP 1 view) and for the safety stock (MRP 2 view) is entered.
Every time a material is withdrawn from the warehouse, the system checks whether this
withdrawal has caused stock levels to fall below the reorder level. If this is the case, the
system makes an entry in the planning file for the next planning MRP run for the material to
be ordered.

Prerequisites
Before beginning this task, verify the following:
• Verify all inventory materials at the plant are set up correctly in the screen views of
MRP1, MRP2, and MRP3 tabs
• View transaction MM03 for this information on materials: reorder point levels,
maximum stock levels, safety stock

Menu Path
Use the following menu path to begin this transaction:
• Select SAP menu Logistics Materials Management Material
Requirements Planning MRP Planning Total Planning Online to get to
the MRP Run screen

Transaction Code
MD01

Helpful Hints
Review the following:
• Before running MRP, verify whether planned orders or purchase requisitions should be
created. Planned Orders are reviewed by warehouse personnel for quantity ordered
and delivery dates. After reviewing all planned orders, warehouse personnel have to
convert into a purchase requisition to forward to their purchasing agents
• Purchase requisitions created from MRP are sent directly to the Purchasing Agents for
processing. This 'skips' the planned order function and purchase requisitions are
directly created and directly forwarded to purchasing agents. Purchase Agents use
transaction ME57 to process
Procedure

1. Start the transaction using the menu path or transaction code.

MRP Run
 R/O/C/D indicates a field is required, optional, conditional (dependent upon another
selection) or the information defaults (based on previously entered information or
system configuration)

2. As required, complete/review the following fields:

Field Name R/O/C/D/ Description

Scope of planning O Key with which a group of plants or MRP areas are
combined in a scope of planning. The plants or MRP areas
that are combined in a scope of planning are planned
together in a total planning run.

Leave blank. This field is used to combine a

GROUP of plants.

Plant R The agency organization unit number.

Example: 1500
Processing key R Indicator used by the system to identify the MPS or MRP
run type.

Always enter NETCH, for net change planning. The

only materials included in the planning run are
those which have undergone a change relevant to
MRP since the last planning run. (Example due to
changes of warehouse issues and receipts).
Example: NETCH
Create purchase req. R Create purchase requisition. Indicator used within MRP to
designate that purchase requisitions are to be created
automatically based on the planned orders.

Enter a 1 to create Purchase requisitions.

Enter a 3 to create Planned Orders.
If creating requisitions, they will be available to
purchasing when the MRP run is executed. Planned
orders are not available to purchasing and
warehouse personnel can view quantities and dates
in planned orders before converting them to
purchase requisitions. A planned order is a Pre-step
to the purchase requisition.
Example: 3
 Field Name R/O/C/D/ Description

Schedule lines R Indicator which controls the system Automatic Schedule

Lines (Scheduling Agreements) during the planning run.

Enter a 1. Schedule agreements are not used. They

are long term arrangements with a vendor to supply
materials at a certain time frame (hourly, daily,
weekly) and primarily used in production
planning/manufacturing.
Example: 1
Create MRP list R Indicator used within MRP to designate that an MRP list is
to be created based on planned orders.

Enter a 1 to create a listing for viewing.

Example: 1
Planning mode R Used to control the manner in which production planning will
occur.

Enter a 1 for un firmed orders/requisitions from the

past. This brings over quantities and dates to the
new requirements planning list.
Example: 1
Scheduling R Date upon which scheduled planning is to occur.

Enter a 1 to choose basic dates for best

performance.
Example: 1
Planning date R Date on which the planning run is to be carried out.

Defaults to today's date. Do not change.

Example: 06/28/2004
Parallel processing O Indicator that enables the system to process separate data
packets on different servers simultaneously.

Leave blank

Display material list O Indicator that instructs the system to create a list of the
planned materials after the planning run. Use the material
list to check which materials were planned in the planning
run.

Check this to display a listing of materials from this

planned run. This creates a listing of planned
materials.
 Field Name R/O/C/D/ Description

User exit key O Control key for user exit material selection - planning run.

Please see note below for entry into the User exit
key field.
Example: 001
User exit parameter O Used to provide additional information on the user exit.

Please see note below for entry into the User exit
parameter field.
Enter appropriate MRP Controller Number set up for
your plant for specific category of materials.
Example: 278

To run MRP for a 'select area of materials', the User exit key and User exit
parameter fields need to be filled in with appropriate data.

Plants have the capability to identify different areas within the plant and assign a
MRP Controller to each area. In many cases, personnel at the inventory plants are
only responsible for materials within their respective area. Personnel in the dietary
and kitchen only need to view and restock food items; maintenance area has the
need to only view restocking of maintenance items, janitorial personnel to view
janitorial supplies for restocking and so on.

That particular MRP controller will be assigned to only materials within their area
and those materials will be identified in the Material Master Record with their MRP
Controller number (MRP1 tab). In turn, they can execute the MRP run (MD01) and
enter their appropriate MRP controller to identify and only execute restocking for
materials in their perspective area.

User exit key: 001 will always be entered in this field.

User exit parameter: Enter appropriate MRP Controller number set up for
materials at your plant. (View the MRP Controller number for a material using
transaction MM03, under MRP1 tab and the MRP Controller number).

3. Select the ENTER icon.

MRP Run

A system message appears 'Please check input parameters'.

Verify all input data on the initial screen is correct.

4. Select the ENTER icon.

Information

5. Select the ENTER icon.

MRP Run

View the Heading 'Database statistics'. This displays the amount of Planned
Orders created from the MRP run. In the above case there were 24 planned
orders created.
 To view and process the planned orders, go to transaction MD16.

If Purchase Requisitions were created from the MRP run, these orders
automatically forward to transaction ME57 for the Purchase Agent to process.

The run-time statistics display running times for the planning file and are technical
related (no direct value to the planning file).

6. Select the EXIT icon until the SAP Easy Access Screen is displayed.

7. You have completed this transaction.

Result
You have successfully completed transaction Material Replenishment Planning (MD01).

Comments
Congratulations!

Thanks&regrds
Arun Pattar