CONSUMPTION BASED PLANNING [CBP]

Manual Reorder Point

MRP Type – VB

Case-1:
AVAILABLE STOCK = 00
REORDER POINT = 10
MAX. STOCK LEVEL = 1000
Before running the MRP

After running the MRP [MD03-for Single-item, Single-level]; here available stock is less than reorder
point (0 < 10). The system will propose the purchase requisition for maximum stock level.
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Case-2:
AVAILABLE STOCK = 00
REORDER POINT = 10
MAX. STOCK LEVEL = 1000
PURCHASE REQUISITION = 5
USING ME51N CREATE PURCHASE REQUISITION (PR)

Before running the MRP

After running MRP, system will generate PR for maximum stock level.
Condition 1: Compare available stock and reorder value (5 < 10)
PR = Maximum Stock level – {Stock + Open purchase Requisitions + Open purchase orders + Open
planned orders + Open production orders + Open process orders} Available Stock

PR = 1000 – (0+5) = 995.

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Case-3:
AVAILABLE STOCK = 02
REORDER POINT = 10
MAX. STOCK LEVEL = 1000
Before MRP run, MD04 screen looks like:

Add stock to the material. Then MD04 looks like:

Here Available stock is still less than reorder point. (8 < 10). Run MRP.
PR = 1000 – (2+5+1) = 992.
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Case-4:
AVAILABLE STOCK = 00
REORDER POINT = 10
MAX. STOCK LEVEL = 1000
Create 2 purchase requisitions through ME51N.
PURCHASE ORDER = 1 ---> Convert Purchase Requisition to Purchase order.
PURCHASE REQUISITION = 5
Create planned order using MD11. (Planned order profile = LB—Standard Purchase Order)
PLANNED ORDER = 1

Planned order 303 created.

After running MRP,

Condition 1: Compare available stock and reorder value
If Condition 1 is true,
Condition 2:
PR = Maximum Stock level – {Stock + Open purchase Requisitions + Open purchase orders + Open
planned orders + Open production orders + Open process orders} Available Stock

Run MRP using MD03.

PR = 1000 - (0+1+1+5) = 993.

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Case-5:
AVAILABLE STOCK = 00
REORDER POINT = 10
MAX. STOCK LEVEL = 1000
Add order reservation to it. For this include Packing_Matl in the BOM of a header matl.

Create Production Order for the header material. (Using CO01)

MD04 screen of Packing_Matl. looks like:
Run MRP using MD03. What will be the result?
Condition 1: Compare available stock and reorder value
If Condition 1 is true,
Condition 2:
PR = Maximum Stock level – {Stock + Open purchase Requisitions + Open purchase orders + Open
planned orders + Open production orders + Open process orders} Available Stock

PR = 1000 – (0+1+1+5) = 993.

MD04 screen will look like:

993- 293 = 700 (Available stock)

In the above case, order reservation not considered in MRP run.

System will not consider the requirements; PIRs/Order Res/Sales orders etc.

In case business wants to consider order reservations and some additional functionality then

Go to change view “MRP TYPES” using the path: MRP TYPE – VB

T-Code: SPRO--->CLICK SAP REFERENCE IMG --->DISPLAY IMG --->Production--->MRP--->Master
Data--->Check MRP Types--->Select VB---> click on details--->change view “MRP TYPES”: Details--->
Select Order Reservation and Include External Requirements (2).

CASE-6:
AVAILABLE STOCK = 15
REORDER POINT = 10
MAX. STOCK LEVEL = 1000

Before MRP run, MD04 screen looks like:

After MRP run; since Stock qty > Reorder point (15>10); No Purchase Requisitions are created.
CASE-7:
AVAILABLE STOCK = 10
REORDER POINT = 10
MAX. STOCK LEVEL = 1000

Before MRP run, MD04 screen looks like:

After MRP run, MD04 screen looks like: (Stock qty = Reorder point). No Purchase Requisitions are
created.

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Automatic Reorder Point

Forecasting and Purchasing view is mandatory.
MRP Type – VM
 D

Enter Consumption Values

Click Main Data; Then Execute Forecast and click the screens.
Now go to MRP-1 view. Reorder point auto-populated as shown below:

Now go to MD04. Screen looks like:

Now run MRP MD03. Refresh MD04. Here Available stock > Reorder point (1000 > 7)

Now change the PurRqs from 1000 to 2.

Then run MRP. Here Available stock < reorder point (2 < 8). So MD04 looks like:

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Forecasting Based CBP
Here Lot size is assigned as ‘FX’ also ‘EX’ can be used. MRP Type is VV.

Save and Run MRP. (MD03)