1

MRP
DOCUMENTS
IN SAP

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SAP MRP

What is SAP MRP - Material Requirement Planning Overview

Material Requirement Planning (SAP MRP) is a tool which helps in planning the
requirement quantities and schedules of a given material. It not only ensures
availability of the material for which MRP is carried out, but also ensures
availability of the components (of all the BOM levels) below in the BOM
structure.

Apart from assuring material availability, MRP also carries out scheduling
of the procurement proposals using the lead times for the
materials/components. When the material is an internally manufactured
material, it will use the lead times or operation lead times from the
routings/recipes and when the material is an external procured material, it
will fetch the lead times or delivery times for the material defined at an
appropriate place in the tool/system. Scheduling of the procurement
proposals not only derives the capacity loading of the orders on the
workcenter but it also calculates the delivery dates of the components that
would be requried for manufacturing (delivery date = start date of
processing).

The output of MRP proposes procurement proposals (planned order or

purchase requests) so as to gaurantee material availability and at the
same time schedule the procurement proposals using delivery lead times
for the materials/components. Material requirement Planning can be run
for purchased materials or finished saleable materials or subassemblies
(semi-finished) used in production.

While the Material Requirement Planning in SAP ECC (SAP MRP), derives a plan
for the materials and helps the planners and supervisors to purchase, produce
or sell. It offers all the possible planning methods available in the market like
the reorder point planning for the consumption based planned materials, lot
for lot MRP planning for the demand based planning materials, forecast based
planning methods which uses the past historical figures to extrapolate the
future requirements (again a consumption based planning material).

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SAP material requirement planning or SAP MRP, uses the following factors
in its planing run:

a) planning strategies - made to order or made to stock or its variations

b) planning types - type of the MRP run, i.e., consumption based planning methods
or demand based planning methods and net requirement planing or gross
requirement planning

c) lot sizing procedures set for the material

d) master data such as BOM or Routings/Recipes, quota arrangements, souce list,

vendors, purchase info records. customer masters etc, and transaction data such as
sales orders, forecast, planned independent demands (forecasted demand)

Presentation of the SAP MRP Documentation

The SAP MRP Documentation is presented in 11 Simple steps which will be

explained in 11 different Links on this website.

Use the link to Learn SAP MRP in 11 Steps

Types of Demands in an Organization

The following are the various types of demands:

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A) Planned indepedent Demand or Forecasted Demand:

An organization runs on external demands (visualized demands or forecasted

demands) for its products. When you talk of a product that is usually stocked and
delivered to the customer from their, it is a typical case of made-to-stock scenario.
Since the sales are from inventory, a company has to pile up only a certain quantity
enough to satisfy the demand, such type of organizations therefore forecast their
future demands based on historical sales, current market popularity of the product,
various environmental factors, seasons, etc. Production from such planned
independent requirement is a usual characteristics of a made-to-stock scenario.
SAP also offers tools for forecasting the future demand using the historical data
and playing various other fators on it. SOP (Sales and operation Planning) is one
such tool in SAP, where you can forecast future demand using past historical
information for a pre-selected organizational structure, for example, you could
have the system pull in the historical information for a given organizational
segment llike Sales oragnization, Sales Division, Distribution Channel, Material or
for a Sales office, Sales division, Material group. The forecast carried out the sales
information from specially defined sales information structure can be used as
planned independent demand for production over the forecasted period.

B) Demand from Sales order or Customer orders

On the other hand, you could also have the demand coming in from sales orders
and the production is initiated thereafter, such scenarios are typical make-to-
order. Manfuacturing after an Order is booked is carried out for products of high
value or for products whose design is supplied by the customer or as
specified/requested by a customer. For Example, Manufacturing of Jewelry,
Aircrafts, Special Purpose Pumps.
Note that Made-to-Order can also be initiated for a typical Made-to-Stock Product,
in
is cases where a special customer places a huge order and the manufacturing
triggered seperately for them.

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You should not be amazed to come across a product which is manufactured

as both MTS and MTO.

All the above cases are typical make-to-order and such demands come in
through sales orders.

Note - The Sales orders demand coming in for a made-to-stock material is

fulfilled using the existing stock, whereas the sales order created for a
make-to-order material can never be satisfied using any existing inventory
as the inventory created for the material would have been produced for
fulfilling other customer orders.

Evolution of MRP - Material Requirement Planning

The concept of Material Requirement planning (MRP I) was designed as a

tool to help planners with the derivation of the quantities of various
material or components that would be required for satisfying a demand and
at the same time for deriving the capacity based plan for loading the orders
for production on the shop floor. The concept which started as a less
integrated mainframe tool has evolved over the years since 1960, from the
time it was first designed, to now, where it is tagged as Material Resource
Planning (MRP II), a much stronger integrated version of the first MRP,
integrating it with the finance, human resource, purchasing and production
modules of a business. It also had much stronger and complex codes to
take care of a few constraints in capacity and material planning.

The MRP II jargon later took on to be called as ERP or Enterpise resource

planning with the greatest possible integration with a central database
server, storing all the integrated data there for making the information and
data available across the business, across business modules and across its
vendors/suppliers and customers. With the evolution of ERP (a superior clone
of the evolved MRP II) businesses took it as the most wildest tool that they
could have to make their business run smoothly, in a much integrated fashion
without loosing any information or spoling the intension of the information
when it flows across the business.

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SAP came across as the very first few companies which evolved the
concept of MRP II in to ERP and earning for themselves a growing
business by selling this new concept. Companies and businesses across
the world made use of this ERP tool and the standard processes offered
to profit themselves.

Material Requirement Planning in SAP Vs SAP SCM:

The SAP R/3 or ECC has a MRP system that plans for material and capacity
(schedules) without considering any constraint and by assuming availability
of infinite capacity for the work centers. This gap of SAP ECC was later-on
removed with the help of an add-on or a plug-in introduced by SAP for the
advanced planning of requirements; it was called SCM - APO (Supply Chain
Management - Advanced Planning Optimizer). This tool worked on much
complex and much supreme heuristics with the capability of planning based
on finite capacity and constraints. The SCM - APO had modules such as
Demand planning which was a superlative version of Sales and Operation
Planning (SAP - SOP) in SAP ECC, Supply Network Planning which allowed
planning across plants and across geographical locations and allowing
businesses to place orders for production or procurement across the global
based on time and cost contraints and the PPDS module (Production
planning and detail scheduling) which was a detailed version of SAP ECC
plant level MRP based Production planning with more brainy heuristics
codes which could consider multiple contraints and finite based planning
situations in one planning run.

Difference between Made-to-order and Made-to-stock

Made-to-stock Scenario:

If a material is defined as a made-to-stock material, i.e., materials which

are not marked with any strategy types or strategy groups in the SAP
material master MRP

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3 view or materials which are marked with collective requirements in the MRP 4
screen, the system calculates the material requirements through the use of a
pretty simple algorithm; where it takes into account the stock in the storage
locations, the receipts expected for the materials through purchase or
production and the incoming demands.

In a made-to-stock scenario, the incoming customer requests are fulfilled from the
inventory. The made-to-stock products are normally the consumer products or
products which have a monopoly market and are sold out of the existing inventory.
Such products are developed and produced continuously over the years till the
product comes to the end of its life cycle.

In such scenarios, the shop floor or the production team never knows, for whom
the product is being produced. The customer demands and the market situations
can only be forecasted and used as a basis for future production. In SAP the
forecasted quantity is evidently used in a form of planned-independent-
requirement.

Made-to-stock production quantities are entered in SAP through the use of

“Planned independent requirements” (transaction code MD61) which are
subsequently planned by SAP MRP run. The planned independent requirements
can be entered manually or the requirement can be pulled in from forecast or it
can be pulled in from the sales and operation information structures (information
structures which carry the sales information at levels defined by the organization).

Made-to-order Scenario:
In cases where the material is defined as made-to-order, i.e., materials
which are marked with a made-to-order strategy in the MRP 3 view of the
SAP material master and marked with individual requirements in MRP 4
view, the system calculates the material requirements through the use of an
algorithm which takes in to consideration the receipts expected for the
material through purchase or production and the incoming sales order
demands. Here the system does not take into account the storage location
stock of the material (since the stock in the storage location for the material
is always tagged for a customer order and cannot be used anywhere else).

In a made-to-stock scenario, the incoming customer requests are accepted

and produced thereafter and ultimately delivered to the very customer. The
example of such a scenario can be high end products like jewelry or high end
equipments or

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very costly product. These products are normally configured by the

customer and the order is produced according to the customer
requirements or by the design provided by the customer. The Sales order
is created or configured according to the customer requirements and
passed on to the production team.

In such a scenario, the tracking of the sales order from its creation to
planning to production to inventorying to delivery can be easily tracked
unlike in made-to-stock scenarios, where the incoming sales orders are not
tracked in the plant, but are fulfilled by the existing stocks.

Materials Planning in SAP ERP- Overview

Materials planning is one of the key of good inventory control systems. The
objective of materials planning is to monitor stocks to ensure material
availability.

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As a leader in ERP software, SAP R/3 also has a special materials planning
function that works like and even better than other inventory control
software. With materials planning in SAP, we can determine automatically
which material is required, the quantity required and when it is required. By
doing so, we can prevent lacking of materials when we need it.

Materials planning in SAP can automatically create procurement proposals

for purchasing and production (planned orders, purchase requisitions or
delivery schedules). This target is achieved by using various materials
planning methods which each cover different procedures.

An example of how SAP materials planning and other SAP functionalities can
help company to excel its business.
Sales and Distribution (SD) module of SAP receives demand from customer.
Sales department will create a sales order (SO) or sales forecast which
contain the information of what, how many, and when Finished Goods are
needed by the customer. The SO or sales forecast will be considered as an
independent requirement in SAP. This requirement will trigger materials
planning process for finished goods.
SAP will compare the requirements with finished goods current stock. If the
requirement fulfillment will result in shortage of stocks (according to
certain calculation of materials planning procedure for the finished goods),
materials planning will automatically create procurement proposal, such as
planned order. Planned order can be converted into production order (if
finished goods are produced internally) or purchase requisition (if finished
goods are procured externally). In addition, materials planning can also
create purchase requisition directly as a procurement proposal (no planned
order).

If the finished goods are produced internally, the production order/planned

order created will be considered as dependent requirement for their
components and/or raw materials. SAP will determine these dependent
requirements by using the information from Bill of Materials (BOM) of
finished goods. These dependent requirements will also trigger materials
planning for the components and/or raw materials. SAP will compare the
requirements with components/raw materials current stock. If the
requirement fulfillment will result in shortage of stocks

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 1 1

(according to certain calculation of materials planning procedure for the

components/raw materials), materials planning will automatically create
procurement proposal, such as planned order. Planned order can be
converted into production order (if components are produced internally) or
purchase requisition (if components/raw materials are procured externally).
In addition, materials planning can also create purchase requisition directly
as a procurement proposal (no planned order).

If the finished goods/components/raw materials are procured externally,

the procurement/purchasing department will process the purchase
requisition into Purchase Order (PO). Production Order and Purchase Order
will result in materials availability when we need them, so we can fulfill the
customer demand on-time.

The prerequisites for implementing all materials planning procedures is the

Inventory Management must function well and should always be up-to-
date. If this prerequisite is not met, then materials planning will fail to
achieve its objective to monitor stocks to ensure material availability.

Materials Planning Procedures in SAP (MRP & CBP)

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You should read previous post about materials planning overview before
reading this post. In this article we will explain in detail about materials
planning procedure in SAP R/3. Its basic concept is similar with other
inventory control software, but SAP R/3 has its own unique procedures for
materials planning. Basically, there are two types of standard materials
planning procedures in SAP, which are:

1.Traditional Material Requirements Planning (MRP)

In traditional SAP MRP system, sales order, planned independent
requirements, reservations, dependent requirements that are created by
BOM explosion, and so on are planned directly as requirements. The
materials planning procedure will create procurement proposal only if
these requirements will result in shortage of material stocks at a certain
time. There are no other requirement that can trigger a procurement
proposal. This procedure is used in “PD-MRP” MRP Type in standard SAP
R/3. MRP is especially useful for the planning of finished products and
important assemblies and components (A materials).

2.Consumption Based Planning (CBP)

Consumption-based planning (CBP) is a materials planning procedure
based on past consumption values that determine future requirements
by using forecast or other statistical procedures.

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Originally, in CBP, planned independent requirements or dependent

requirement will not be considered in the net requirements calculation.
Instead, it is triggered when stock levels fall below a predefined reorder point
or by forecast requirements calculated using past consumption values. So, all
the planned independent or dependent requirements in a certain period of
time should have been considered before (when set the reorder point or
calculate the requirement forecast).

Consumption-based planning procedures are simple materials planning

procedures which we can use to achieve set targets with relatively little effort.
Therefore, these planning procedures are used in areas without in-house
production and/or in production plants for planning both B- and C-parts and
operating supplies.

There are three procedures in Consumption Based Planning (CBP), which are:

a.Reorder point planning

In reorder point planning, SAP checks whether the available stocks are below
the reorder point that has been set for the material. If they are, SAP will create
procurement proposal.
We can determine the reorder point manually (“VB-Manual reorder point
planning” MRP Type in standard SAP R/3) or, it can also be calculated
automatically using the material forecast (“VM-Automatic reorder point
planning” MRP Type in standard SAP R/3).

The reorder point should cover the average material requirement/consumption

expected during the replenishment lead time (procurement processing time +
planned delivery time + GR processing time). Besides the average
consumption, we also should consider safety stock. The safety stock exists to
cover both excess material consumption within the replenishment lead time
and any additional requirements that may occur due to delivery delays.
Therefore, the safety stock is included in the reorder level.

The following values are important for defining the safety stock:

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Past consumption values (historical data) or future requirements

Vendor/production delivery timelines
Service level to be achieved
Forecast error, that is, the deviation from the expected requirements
In standard SAP R/3 system, besides “VB – Manual Reorder Point” and
“VM – Automatic Reorder Point” MRP Type, there are also other MRP
Types that have reorder point as its basis to calculate requirement with
additional procedure which count external requirement (sales order and
manual reservation) as a requirement. The MRP Type are: “V1-Manual
reorder point with external requirements” and “V2-Automatic reorder
point with external requirements”.

b.Forecast-based planning
In forecast-based planning, historical data is used in the material forecast
to estimate future requirements. These requirements are known as
forecast requirements and are immediately available in planning.
The forecast, which calculates future requirements using historical data, is
carried out at regular intervals. This offers the advantage that
requirements, which are automatically determined, are continually
adapted to suit current consumption needs.

This procedure is used in “VV-Forecast-based planning” MRP Type in

standard SAP R/3.

c.Time-phased materials planning

In time-phased planning, 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.
This procedure is used in “R1-Time-phased planning” MRP Type in standard
SAP R/3.
Besides all procedures that have been explained above, in SAP R/3 system
we can create other procedures according to our own needs. We can do it
through configuration with SPRO T-code.

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We will write another post about how to configure MRP in SAP R/3 System.
Please come back later.

Materials planning is one of the key of good inventory control systems. The
objective of materials planning is to monitor stocks to ensure material
availability. As a leader in ERP software, SAP R/3 also has a special
materials planning function that works like and even better than other
inventory control software. With materials planning in SAP, we can
determine automatically which material is required, the quantity required
and when it is required. By doing so, we can prevent lacking of materials
when we need it.

Materials planning in SAP can automatically create procurement proposals

for purchasing and production (planned orders, purchase requisitions or
delivery schedules). This target is achieved by using various materials
planning methods which each cover different procedures.
An example of how SAP materials planning and other SAP functionalities
can help company to excel its business.
Sales and Distribution (SD) module of SAP receives demand from customer.
Sales department will create a sales order (SO) or sales forecast which
contain the information of what, how many, and when Finished Goods are
needed by the customer. The SO or sales forecast will be considered as an
independent requirement in SAP. This requirement will trigger materials
planning process for finished goods.
SAP will compare the requirements with finished goods current stock. If the
requirement fulfillment will result in shortage of stocks (according to
certain calculation of materials planning procedure for the finished goods),
materials planning will automatically create procurement proposal, such as
planned order. Planned order can be converted into production order (if
finished goods are

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 1 1

produced internally) or purchase requisition (if finished goods are procured

externally). In addition, materials planning can also create purchase
requisition directly as a procurement proposal (no planned order).

If the finished goods are produced internally, the production order/planned

order created will be considered as dependent requirement for their
components and/or raw materials. SAP will determine these dependent
requirements by using the information from Bill of Materials (BOM) of
finished goods. These dependent requirements will also trigger materials
planning for the components and/or raw materials. SAP will compare the
requirements with components/raw materials current stock. If the
requirement fulfillment will result in shortage of stocks (according to certain
calculation of materials planning procedure for the components/raw
materials), materials planning will automatically create procurement
proposal, such as planned order. Planned order can be converted into
production order (if components are produced internally) or purchase
requisition (if components/raw materials are procured externally). In
addition, materials planning can also create purchase requisition directly as
a procurement proposal (no planned order).

If the finished goods/components/raw materials are procured externally,

the procurement/purchasing department will process the purchase
requisition into
Purchase Order (PO).
Production Order and Purchase Order will result in materials availability
when we need them, so we can fulfill the customer demand on-time.

The prerequisites for implementing all materials planning procedures is

the Inventory Management must function well and should always be up-to-
date. If this prerequisite is not met, then materials planning will fail to
achieve its objective to monitor stocks to ensure material availability.

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: [email protected]

www.zarantech.com
 1 1

Materials Planning Procedures in SAP (MRP & CBP)

Posted
1. Traditional Material Requirements Planning (MRP)In traditional Material
Requirements Planning (MRP), sales order, planned independent
requirements, reservations, dependent requirements that are created by
BOM explosion, and so on are planned directly as requirements. The
materials planning procedure will create procurement proposal only if these
requirements will result in shortage of material stocks at a certain time.
There are no other requirement that can trigger a procurement proposal. This
procedure is used in “PD-MRP” MRP Type in standard SAP R/3.MRP is
especially useful for the planning of finished products and important
assemblies and components (A materials).2. Consumption Based Planning
(CBP)Consumption-based planning (CBP) is a materials planning procedure
based on past consumption values that determine future requirements by
using forecast or other statistical procedures.Originally, in CBP, planned
independent requirements or dependent requirement will not be considered
in the net requirements calculation. Instead, it is triggered when stock levels
fall below a predefined reorder point or by forecast requirements calculated
using past consumption values. So, all the planned independent or
dependent requirements in a certain period of time should have been
considered before (when set the reorder point or calculate the requirement
forecast).Consumption-based planning procedures are simple materials
planning procedures which we can use to achieve set targets with relatively
little effort. Therefore, these planning procedures are used in areas without
in-house production and/or in production plants for planning both B- and C-
parts and operating supplies.There are three procedures in Consumption
Based Planning (CBP), which are:a.Reorder point planningIn reorder point
planning, SAP checks whether the available stocks are below the reorder
point that has been set for the material. If they are, SAP will create
procurement proposal.We can determine the reorder point manually (“VB-
Manual reorder point planning” MRP Type in standard SAP R/3) or, it can also
be calculated automatically using the material forecast (“VM-Automatic
reorder point planning” MRP Type in standard SAP R/3).The reorder point

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 1 1

should cover the average material requirement/consumption expected

during the replenishment lead time (procurement processing time +
planned delivery time + GR processing time). Besides the average
consumption, we also should consider safety stock. The safety stock
exists to cover both excess material consumption within the
replenishment lead time and any additional requirements that may
occur due to delivery delays. Therefore, the safety stock is included in
the reorder level.The following values are important for defining the
safety stock:
· Past consumption values (historical data) or future requirements
· Vendor/production delivery timelines · Service level to be achieved
· Forecast error, that is, the deviation from the expected requirementsIn
standard SAP R/3 system, besides “VB – Manual Reorder Point” and
“VM – Automatic Reorder Point” MRP Type, there are also other MRP
Types that have reorder point as its basis to calculate requirement with
additional procedure which count external requirement (sales order and
manual reservation) as a requirement. The MRP Type are: “V1-Manual
reorder point with external requirements” and “V2-Automatic reorder
point with external requirements”.b.Forecast-based planningIn
forecast-based planning, historical data is used in the material forecast
to estimate future requirements. These requirements are known as
forecast requirements and are immediately available in planning.The
forecast, which calculates future requirements using historical data, is
carried out at regular intervals. This offers the advantage that
requirements, which are automatically determined, are continually
adapted to suit current consumption needs.This procedure is used in
“VV- Forecast-based planning” MRP Type in standard SAP R/3.c.Time-
phased materials planningIn time-phased planning, 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.This procedure is used in “R1-
Time-phased planning” MRP Type in standard SAP R/3.Besides all
procedures that have been explained above, in SAP R/3 system we can
create other procedures according to our own needs. We can do it
through configuration with SPRO T-code.We will write another post
about how to configure MRP in SAP R/3 System.

Phone/Whatsapp: +1 (515) 309-7846 (USA) Email: [email protected]

www.zarantech.com
 1 1

Materials Planning Procedures in SAP (MRP & CBP)

Basically, there are two types of standard materials planning procedures in
SAP, which are:

1. Traditional Material Requirements Planning (MRP)

In traditional SAP MRP system, sales order, planned independent
requirements, reservations, de explosion, and so on are planned directly as
requirements. The materials planning procedure will requirements will result in
shortage of material stocks at a certain time. There are no other requi
procedure is used in “PD-MRP” MRP Type in standard SAP R/3.

MRP is especially useful for the planning of finished products and important
assemblies and com

2. Consumption Based Planning (CBP)

Consumption-based planning (CBP) is a materials planning procedure based on

past consumptio using forecast or other statistical procedures.

Originally, in CBP, planned independent requirements or dependent

requirement will not be con it is triggered when stock levels fall below a
predefined reorder point or by forecast requirement the planned independent
or dependent requirements in a certain period of time should have been
calculate the requirement forecast).

Consumption-based planning procedures are simple materials planning

procedures which we can effort. Therefore, these planning procedures are used
in areas without in-house production and/o parts and operating supplies.

There are three procedures in Consumption Based Planning (CBP), which are:

a.Reorder point planning

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 1 1

In reorder point planning, SAP checks whether the available stocks are below
the reorder point t will create procurement proposal.

We can determine the reorder point manually (“VB-Manual reorder point

planning” MRP Type automatically using the material forecast (“VM-Automatic
reorder point planning” MRP Type in

The reorder point should cover the average material requirement/consumption

expected during time + planned delivery time + GR processing time). Besides
the average consumption, we also to cover both excess material consumption
within the replenishment lead time and any additional delays. Therefore, the
safety stock is included in the reorder level.

The following values are important for defining the safety stock:

• Past consumption values (historical data) or future requirements

• Vendor/production delivery timelines
• Service level to be achieved
• Forecast error, that is, the deviation from the expected requirements

In standard SAP R/3 system, besides “VB – Manual Reorder Point” and “VM –
Automatic Reor Types that have reorder point as its basis to calculate
requirement with additional procedure whi manual reservation) as a
requirement. The MRP Type are: “V1-Manual reorder point with exter with
external requirements”.

b.Forecast-based planning
In forecast-based planning, historical data is used in the material forecast to
estimate future requ requirements and are immediately available in planning.

The forecast, which calculates future requirements using historical data, is

carried out at regular requirements, which are automatically determined, are
continually adapted to suit current consu

This procedure is used in “VV-Forecast-based planning” MRP Type in standard

SAP R/3.
c.Time-phased materials planning
In time-phased planning, historical data is also used in the material forecast to
estimate future re

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 1 1

planning run is only carried out according to predefined intervals. If a vendor

always delivers a sense to plan this material according to the same cycle, in
which it is delivered.
This procedure is used in “R1-Time-phased planning” MRP Type in standard
SAP R/3.

Besides all procedures that have been explained above, in SAP R/3 system we
can create other p through configuration with SPRO T-code.

We will write another post about how to configure MRP in SAP R/3 System.

MRP
MRP is the planning tool in SAP which will look at all aspects of a material and
is highly based upon the master data of the material. MRP looks at current
inventory, current requirements, and open purchase requisition/orders and so
on. So if a material is required to satisfy a sales order and there is no inventory,
MRP will create a planned order if the item is to be produced in house. This
planned order can then be converted to a production order by the master
scheduler.

If the item is to be procured, then MRP will create a purchase requisition

which the Buyer will convert to a purchase order. This is just one scenario, the
system is highly configurable and will do pretty much whatever you tell based
on config and master data.

The main function of material requirements planning is to guarantee material

availability, that is, it is used to procure or produce the requirement quantities
on time both for internal purposes and for sales and distribution. This process
involves the monitoring of stocks and, in particular, the automatic creation of
procurement proposals for purchasing and production.

The following topics are covered in the rest of material;

▪ PlanningProcedure
▪ MRP at Plant or MRP Area Level
▪ Reorder Point Planning

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▪ MRP Run Procecure

▪
Total Planning
▪ Total Planning Run With MRP Controller and much more…

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