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Storage Location MRP - SAP Blogs
Storage Location MRP - SAP Blogs
The Purpose of this document is to explain the significance of “Storage Location MRP”. This feature gives you
flexibility to:
Material requirement planning generally runs at plant level. When you run it for a material, system sumsup total
stock from all storage locations and considers it as “available stock” to fullfill the demand elements.
The control of “storage location MRP” on Material Master is maintained in MRP 4 view:
Let’s consider a raw material RM0001 maintained in plant FP01. This material is extended to storage locations
SL01 and SL02. I have kept both the Sloc as non WM managed in order to simplify the example.
SL01 – 20
SL02 – 50
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This is the default case where stock of material at storage location is considered for MRP run (Plant level). This is
the default case in which total stock (70) of all storage locations is used together in MRP at plant level.
Example: let’s set this indicator “1” for sloc SL01 (with 20 quantity)
MRP 4:
Now if we check MD04 for same stock situation we will see 20 Qty is excluded from total plant stock:
The important point to note here is that total 70 is still “unrestricted quantity” and available for use but since we
have set indicator “1” in SL01, the sloc stock will get EXCLUDED in MRP run. This means that we can still
consume 20 qty via goods issue but system ignores it in Planning run (MRP).
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System will only consider 50 for MRP calculation and ignore 20 from SL01 (excluded)
After MRP:
There is a demand of 60 and out of which 50 is covered by stock in MRP calculation and system finds a deficit of
10 quantities. Even though there is an extra stock of 20 in SL01 but since we have excluded it from MRP run,
system generates a purchase requisition of 10 quantities.
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Separate storage location MRP is carried out using consumptionbased planning. In this case, one must define a
reorder level and a replenishment quantity (fixed lot size) at storage location level. In so doing, now if the stock
level falls below the reorder level in that perticular the storage location, its considered in MRP run.
MRP 4 settings
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SL02 as 50
Sicne the current stock (10) level is below reorder point (15) and it should be considered in MRP run. As shown in
below expample, for requirement of 25 system create a transfer requirement of 25 quantity from SL02 as stock is
already present in different storage location under same plant.
Once the transfer posting is made against the reservation, stock situation looks like this:
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Apart from transfer posting with movement 311, there are possibilities to use special procurement key for Sloc to
be planned separately. They can be maintained in MRP 4 at storage location details:
Scenario 1
Material RM0001 in plant FP01 in Sloc SL01 (Storage location to be planned separately with SPK 40 – Stock
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transfer)
Reorder point – 15
Replenishment Quantity – 25
System creates a planned order that can be converted in Purchase requisition then to Stock Transfer order
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You can also set default setting of Storage location MRP customizing under below path:
Production > Basic Data > Material Requirement Planning > Planning > Define Storage Location MRP per
Plant (OMIR)
If you set this indicator in custominzing then system will propose same settings at the time of creating new material
master record.
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Incase materials are already extended to a perticular storage location and you set OMIR settings later, then
system will not set these settings automatically in MRP4 view. One has to set them manually in material master
record.
1. When you want to have some quantity of material separate for specific purpose (only for manual goods issue)
2. When you DO NOTwant to have a particular material considered for net requirement planning.
3. When stores / warehouse is geographically too far from the production location that is planned with the storage location
MRP
4. When stock of a storage location is only available for service and not for production
etc…
There could be multiple other cases where Storage Location MRP functionality can be used instead of setting up complex
scenarios.
* Request all readers to please suggest other possible cases, if they have come across any, so that this documents can be
updated and improved with the course of 鶕�me.
Thank you for reading.
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