SAP MM (Material Management)

MRP—MATERIAL REQUIREMENT PLANNING

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 AGENDA

➢ Different type of MRP

➢ Reorder point planning
➢ Automatic Creation of Purchase Order through MRP
 Different type of MRP

The purpose of MRP is to see that the stock of material is available so as to meet customer demand.

The central role of MRP is to monitor the stock and automatically generate proposals either for

production or for purchasing.

1-MRP -PD---- Safety stock and planned independent requirement

2-CBP-consumption Based planning--Reorder point planning, Forecast based planning, Time phased Planing.

In CBP we have following procedure-

1-Reorder point planning – VB and VM

2-Forecast based planning - VV

3-Time phased planning – R1

 Reorder point planning

We have two types in reorder planning

1-manually ROP - VB

2-Automatic ROP - VM

MRP Controller----A person who is responsible for carrying MRP.

Planned order-The planned order is document that contains the material, Quantity for the
plant, This is used for internally produced materials during MRP run.

When we carry out MRP, If the stock of material is available for production, The system
will initially create planned order and the planned order will be converted in to production
order to go for production. ----PP
 Reorder point planning

When we carry out MRP, If the stock of material is not available sufficiently for
production, The system will initially create purchase requisition and PR will be converted in
to purchase order to go for purchasing.---MM

MRP controller has a choice between creating a planned order and a purchase requisition for
the materials that are produced externally so in this case if the stock is less the system will
create planned order, the planned order will be converted in to Purchase requisitions and PR
will be converted into Purchase order to go for purchasing.

MRP is usually carried out at plant level.

Procurement lead time- this is the time taking for the ordered material to be available in the
stock after release of PO.
 Reorder point planning

Procurement lead time Consumption- this is the stock that will be consumed during this time.

In case of reorder point planning we maintain in MMR MRP1 the reorder point for stock(100Kg) and
also lot size(HB) and maximum stock level to be procured,

Safety stock-Safety stock must cover both excess material consumption with replacement lead time
and the additional requirement that may occur during delivery delays.

In manual ROP we maintain ROP and safety stock in MMR.

In automatic ROP planning both ROP and safety stock are determined by integrated forecast program.

In in-house production the system will create planned order for planning production quantities.
 Reorder point planning

In external procurement the system will create planned order or PR.

Configuration Settings for MRP:

➢ Requirement Planning for the MRP-Activate

Path-SPRO-IMG-MM-CBP-Planning-Activate MRP
Reorder point planning
 Reorder point planning

➢ Planned Parameters for the plant-activate

Path-SPRO-IMG-MM-CBP-Plant Parameters-Carryout Overall maintenance of plant
parameters

Here the different parameters for the MRP are maintained as shown below.
 Reorder point planning

If you want to configure new MRP Controllers from MRP Types we can also do.
Reorder point planning
Reorder point planning
 Automatic Creation of Purchase Order through MRP

A Company needs constantly raw materials supply from the same supplier (fixed vendor) for
which PO’s are created through automation that is SAP creates PO’s based on PR’s generated
via MRP.
Steps:
• Create MMR with MRP Views, In Purchasing view select Auto PO checkbox
• Create VMR and in Purchasing view select Auto PO checkbox
• Create PIR
• Create Source List with the fixed vendor and MRP relevant.in ME01
• Check MMBE
• Run the MRP-TC- MD02 or MD03
• Stock Requirements List-TC-MD04
• Display PR
 Automatic Creation of Purchase Order through MRP

• Create PO through automation-TC-ME59N Here select purchase requisition check box, Click
Execute.

What are MRP Parameters – The data required to carryout MRP are called MRP Parameters

1. MRP1-

MRP Type-VB,ROP,Lot Size-HB,max Stock Level,MRP Controller

1. MRP2 – Procurement Type , Special Stock,Planned Delivery Time ,GR Processing time,Safety

Stock

What are different MRP Types

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