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Table of ContentsTable of ContentsIntroduction719The basic principles of material requirements planning1.11.21.31.41.523456The task of MRPPrerequisites for MRPPlanning levels for MRPMRP proceduresSummary910131315MRP procedures in consumption-based MRP172.12.22.32.42.51723252932Manual reorder point planningAutomatic reorder point planningStochastic MRPTime-phased MRPSummarySettings in the master data333.13.23.3334953The material masterThe master data for the source determinationSummaryThe planning run554.14.24.34.455586066The MRP processThe planning fileExecuting the planning runSummaryEvaluating planning675.15.25.3678384The current stock/requirements list (MD04)The MRP lists in transactions MD05 and MD06SummaryThe forecast856.186Settings for the forecast in the material master5
Table of Contents6.26.36.46.5789Forecast modelsPerforming a forecastResults of the forecastSummary9095100102Planning levels1037.17.27.37.4103106107108The separate plannable storage locationStorage location excluded from MRPMRP areasSummaryCustomizing in ating material requirements planningThe plant parametersThe MRP typePlanning file entriesException messagesMRP groupsRounding profiles and range of coverage profilesTexts for MRP elementsMRP areasAvailability checkSettings for the quota arrangementLot-sizing procedureSettings for the forecastSummarySummary13910 Appendix14010.1 Transaction codes10.2 Short text for the MRP elements140141A The Author146B Index147C Disclaimer1506
2 MRP procedures inconsumption-based MRPThis chapter presents the different procedures for consumption-basedMRP, as well as special features of and the most important settings forthese procedures. The chapter explains the fundamental terms that areimportant for MRP in the SAP system. Which of the four proceduresyou ultimately decide on depends on the data that is available in thesystem. For example, the forecast, which is essential for some procedures, can be executed only if historical values are available.2.1Manual reorder point planning2.1.1 DefinitionIn manual reorder point planning, the SAP system compares the anticipated available stock with the reorder point in the material master. Using theMRP indicator VB in the material master, you assign the MRP procedureto the material (see Figure 1.4). With this type of MRP, you maintain the reorder point and the safety stock manually in the MRP 1 (reorder point) andMRP 2 (safety stock) (see Section 3.1) views.The reorder pointThe reorder point is a stock quantity. When this quantityis reached, or if the level of stock falls below this quantity,procurement should be triggered to ensure that the material is always available in sufficient quantity during theprocurement process.The safety stockThe safety stock is used to bridge the material requirementsin the event of any delay in procurement (delivery delay orproblems during production). It is part of the reorder point.17
MRP procedures in consumption-based MRPWhen the reorder point is reached or the stock available falls below thislevel, more of the material should be ordered. In an ideal situation, thegoods receipt should be posted when the safety stock level is reached (seeFigure 2.1).Figure 2.1: Procurement in reorder point planningTo determine the reorder point, you need the safety stock, the replenishment lead time, and the consumption during the replenishment lead time.You use the following formula to calculate the reorder point:Reorder point safety stock (daily requirement replenishment lead time in days).The safety stock figure and the reorder point come from the material master.2.1.2 The replenishment lead timeThe replenishment lead time is made up of the purchasing departmentprocessing time (set in the plant parameters in Customizing, see Section8.2), the planned delivery time (material master), and the goods receiptprocessing time (material master), as shown in Figure 2.2.18
MRP procedures in consumption-based MRPFigure 2.2: Replenishment lead timeYou maintain the purchasing department processing time in workdays. Thisfigure indicates the time that the buyer needs to convert a purchase requisition from MRP into a purchase order. You maintain the figure in the plantparameters in Customizing as follows: Materials Management Consumption-Based Planning Plant Parameters Carry Out Overall Maintenance ofPlant Parameters, setting it at plant level (for the setting, see Figure 2.3).This time is not dependent on the material, as in principle, the same effortis required regardless of whether the order is for 100 tons of gravel or onescrew.Figure 2.3: Purchasing department processing timeThe planned delivery time is the time that the supplier needs to deliver thematerial. For material produced in-house, this time is the time required forin-house production. In the material master, this field must be defined as amandatory field. In contrast, in the purchasing info record, you can maintaina separate planned delivery time in the purchasing organization data for thecombination of supplier, material, purchasing organization, and plant. Forexample, to deliver to a plant in Berlin, a supplier needs one day; to deliverto a plant in Heidelberg, the supplier needs three days. If the planned delivery time in the material master has different values to the planned deliverytime in the purchasing info record, the rule “from specific to general” applies(see Figure 2.4).19
MRP procedures in consumption-based MRPFigure 2.4: Planned delivery time in the material master and purchasinginfo recordDue to the combination of material and supplier, the purchasing info recordis the more specific master record. Therefore, to calculate the replenishment lead time, the value for the planned delivery time is taken from thismaster record. You maintain the planned delivery time in calendar days.This is because, for example, the transport of goods from abroad by shipdoes not stop at weekends or on public holidays.You enter the goods receipt processing time in the material master record inthe Purchasing view under Other Data (see Figure 2.5).This value indicates the time required after delivery to check the materialand transfer it to stock. The goods receipt processing time is specified inworkdays because the goods receipt department is active only on thesedays.20
MRP procedures in consumption-based MRPFigure 2.5: Goods receipt processing time2.1.3 The net requirements calculationWith the net requirements calculation, the SAP system checks whethera procurement proposal should be created in MRP at all. To do this, thesystem compares the reorder point with the anticipated warehouse stock(stock, purchase order, production orders, etc.) available. If the reorderpoint is the higher number, there is a material shortage. In this case, aprocurement proposal is created for the previously defined lot size (seeSection 3.1.2) (see Figure 2.6).Figure 2.6: Net requirements calculation in manual reorder point planning21
IndexB IndexAActivating MRP 109Allocated quantity 51Anticipated warehouse stock available 21, 25Automatic reorder point planning23Availability check 47, 132Availability date 23, 32, 80, 136Availability group 132Available stock 116BBackward scheduling 27CChecking group 47Checking rule 47, 81, 132Collective access 72Complete planning 55Consistency check 119Constant model 91Consumption-based MRP 14Current stock/requirements list 67Customizing request 80DDisplay filter 68Dynamic safety stock 127EError total 98Exception group 74Exception message 63, 82, 120FFilter On/Off 71Fixed ID indicator 22, 100Fixed planned order 22Fixed purchase requisition 22Float after production 114Float before production 114Float (buffer) time 113Forecast 85, 95, 137Forecast model 87, 90Forecast parameters 95Forecast profile 33, 86Forecast requirements 25Forward scheduling 23GGoods receipt date 80Goods receipt processing time 20,23IIndependent requirements 28Individual forecast 95JJust in time delivery scheduleindicator 44LLot size 36exact 37fixed 38maximum 41Lot-sizing procedure 36, 135147
IndexMMaster schedule item 59Material tree 76Mean absolute deviation 98Minimum lot size 41Minimum safety stock 46MRP area 13, 107, 130MRP area type 13, 107MRP group 122MRP list 63, 71, 83MRP profile 33MRP run 55MRP type 10, 12, 117NNavigation profile 78Net requirements calculation 21,25, 39, 46, 58Number range interval 110OOpening period 27, 114Open purchase order quantity(total) 22Optimizing lot-sizing procedures 39Order tree 77Own favorites 78PPeriod 26Periodic lot sizes 38Period indicator 87, 97, 136Period totals 80Plan-based MRP 14Planned delivery time 19, 23, 115Planning calendar 129Planning calendar 30Planning date 65Planning file 58, 119Planning run 55148Planning time fence 125Plant parameters 10, 109Processing key 61NETCH 61NETPL 61NEUPL 61Procurement type 43Product group tree 77Purchasing department processingtime 19, 23, 114QQuota 51Quota arrangement 50, 134Quota arrangement usage 44, 134Quota base quantity 51Quota rating 51RRange of coverage profile 46, 127,128Receipt days' supply 74Release period 114Reorder point 17, 21, 24, 105Replenishment lead time 18, 23Replenishment quantity 104Replenish to maximum stock level38Rescheduling 116Retrospective withdrawal 44Rounding profile 42, 125Rounding value 42, 125SSafety stock 17, 24, 46Safety time 28Scheduling margin key 45, 113Screen sequence detailed header68Seasonal model 93Selection group 120
IndexSelection rule 68Separate plannable storagelocation 103Service level 24Single-item planning 57Smoothing factors 96Source determination 49Source list 52, 134Source list requirement 53Special procurement 43Special procurement key 106Special procurement type 112Splitting indicator 26, 138Stochastic MRP 25Stock days' supply 74Stock/requirements list 63TThe seasonal trend model 94Threshold value 125Time-phased MRP 29Total forecast 95Tracking limit 90, 98Tracking signal 90, 98Trend model 92WWarehouse stock 22Worklist tree 77149
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MRP indicator VB in the material master, you assign the MRP procedure to the material (see Figure 1.4). With this type of MRP, you maintain the re-order point and the safety stock manually in the Mrp 1 (reorder point) and Mrp 2 (safety stock) (see Section 3.1) views. The reorder point
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