SAP MRP

WHAT IS MRP?

MRP stands for material requirement planning. It ensures availability of raw materials for production at right time in right quantity. When an MRP system is doing its job, it reduces material waste while also avoiding product shortages. The data fed into the system must be accurate; otherwise, serious production and stock errors may occur.


MRP TYPES:

The SAP ECC supports 3 types of planning procedures.

1. Material Requirement Planning (MRP)

2. Material Production Schedule (MPS)

3. Consumption Based Planning (CBP)

• Reorder Point Planning
• Forecast Based Planning
• Time Phases Planning

Reorder Point Planning

ROP is further divided into two types;

A. Manual Reorder Point (VB)

B. Automatic Reorder Point (VM)

In reorder Point planning, the net requirements calculation is triggered when stock falls below a reorder Point. It did not consider independent or dependent requirements to determine net requirements.

Scenario

MRP Type :    VB (Manual ROP)

Reorder Point : 100

Lot size.           : HB (Replenish to                             max stock​ level)

Max stock level: 400

Stock                  : 25

Net requirement = Max stock level - (stock+ PO)

                 .               400-25-0 = 375

Forecast Based Planning

Forecast Based Planning is based on material consumption. It operates based on historical values and forecasted values.

Scenario: 
MRP 1VIEW
MRP Type : VV
Lot Size.    : Periodic Lot size 

MRP 3 VIEW
Period Indicator : M

Forecasting View
Forecast Model.   : D
Period Indicator    : M

TIME PHASED PLANNING

It is used when a vendor delivers raw materials on a specific day. It plans the raw material according to the delivery pattern of the vendor. Which means it considers the dependent requirements falls within the delivery date instead of the entire planning horizon.   

In Planning file, net change indicators are not relevant for the TPP, only planning date is considered during planning run. 

TPP fails when supplying same component from two vendors at different delivery days. We do not have option to maintain different delivery date at the material/plant level.