Difference between MRP & SRP
Hello everyone,
Can anyone help me out by providing me the difference between Material Requirement Planning (MRP) & Stock Requirement Planning (SRP)
Regards,
Indranil
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MMCBPCBP/MMCBPCBP.pdf
Materials Requirements Planning (MRP)
MRP is a planning tool geared specifically to assembly operations. The aim is to allow each manufacturing unit to tell its supplier what parts it requires and when it requires them. The supplier may be the upstream process within the plant or an outside supplier. Together with MRP II it is probably the most widely used planning and scheduling tool in the world. MRP was created to tackle the problem of 'dependent demand'; determining how many of a particular component is required knowing the number of finished products. Advances in computer hardware made the calculation possible.
Master Production Schedule
The process starts at the top level with a Master Production Schedule (MPS). This is an amalgam of known demand, forecasts and product to be made for finished stock. The phasing of the demand may reflect the availability of the plant to respond. The remainder of the schedule is derived from the MPS. Two key considerations in setting up the MPS are the size of `time buckets' and the `planning horizons'. A `time bucket' is the unit of time on which the schedule is constructed and is typically daily or weekly. The `planning horizon' is how far to plan forward, and is determined by how far ahead demand is known and by the lead times through the operation. There are three distinct steps in preparing an MRP schedule:
exploding
netting
offsetting.
Exploding
Explosion uses the Bill of Materials (BOM). This lists how many, of what components, are needed for each item (part, sub assembly, final assembly, finished product) of manufacture. Thus a car requires five wheels including the spare. BOM's are characterised by the number of levels involved, following the structure of assemblies and sub assemblies. The first level is represented by the MPS and is 'exploded' down to final assembly. Thus a given number of finished products is exploded to see how many items are required at the final assembly stage.
Netting
The next step is 'netting', in which any stock on hand is subtracted from the gross requirement determined through explosion, giving the quantity of each item needed to manufacture the required finished products.
Offsetting
The final step is 'offsetting'. This determines when manufacturing should start so that the finished items are available when required. To do so a 'lead time' has to be assumed for the operation. This is the anticipated time for manufacturing.
The whole process is repeated for the next level in the BOM and so on until the bottom is reached. These will give the requirements and timings to outside suppliers.
There are three major assumptions made when constructing an MRP schedule:
The first, and possibly the most important, is that there is sufficient capacity available. For this reason MRP is sometimes called infinite capacity scheduling.
The second is that the lead times are known, or can be estimated, in advance.
The third is that the date the order is required can be used as the starting date from which to develop the schedule.
Hope this helps you.
Do award points if you found them useful.
Regards,
Rakesh
Similar Messages
-
Difference between MRP and MPS..
Hi ALL,
I am aware that MPS planning is done for the materials which are high-valued....Main aim is to reduce costs and to increase planning stability...
Also these type of Materials can be planned using MRP...
Then why do we go for MPS Planning only...?
Thanks..
Regards,
Ameya K.Hi Ameya,
MPS
1.In the MPS run, the materials marked MRP Type as MPS (ie. M0,M1) only will be included . The planned orders are created at the MPS Material level only.
2.The BOM is exploded for next one level down only.Further level will not be exploded,that means Dependent requirements are created for the BOM components one level down, further level will not processed.
This allows MRP controller can ensure that the MPS items are correctly planned before any MRP run takes place. This allows the planner to check and change the planning result, before any MRP run takes place for other materials.
For example,consider this business scenario, suppose one wants to do planning for finished Goods once pre week, but it is necessary to do planning for their components on daily basis.
so for this exmple, you can define Finished materials with MRP type as MPS and all the components with MRP type as MRP.
MPS run is carried out before the MRP run. So that the Planner can ensure planning result before the MRP run.
MRP.
MRP Run will plan all BOM level of Materials.
i hope i have tried to clear your doubt some what.
for more information please see following links
http://www.sap-img.com/production/difference-between-mrp-vs-mps.htm
http://www.sap-basis-abap.com/sappq002.htm
thanks
pradeep. -
Dear All,
Can any body tell me what is the difference between MRP & consumption base planning (CBP),
Best regards,
ABBAShttp://help.sap.com/printdocu/core/Print46c/en/data/pdf/MMCBPCBP/MMCBPCBP.pdf
Materials Requirements Planning (MRP)
MRP is a planning tool geared specifically to assembly operations. The aim is to allow each manufacturing unit to tell its supplier what parts it requires and when it requires them. The supplier may be the upstream process within the plant or an outside supplier. Together with MRP II it is probably the most widely used planning and scheduling tool in the world. MRP was created to tackle the problem of 'dependent demand'; determining how many of a particular component is required knowing the number of finished products. Advances in computer hardware made the calculation possible.
Master Production Schedule
The process starts at the top level with a Master Production Schedule (MPS). This is an amalgam of known demand, forecasts and product to be made for finished stock. The phasing of the demand may reflect the availability of the plant to respond. The remainder of the schedule is derived from the MPS. Two key considerations in setting up the MPS are the size of `time buckets' and the `planning horizons'. A `time bucket' is the unit of time on which the schedule is constructed and is typically daily or weekly. The `planning horizon' is how far to plan forward, and is determined by how far ahead demand is known and by the lead times through the operation. There are three distinct steps in preparing an MRP schedule:
exploding
netting
offsetting.
Exploding
Explosion uses the Bill of Materials (BOM). This lists how many, of what components, are needed for each item (part, sub assembly, final assembly, finished product) of manufacture. Thus a car requires five wheels including the spare. BOM's are characterised by the number of levels involved, following the structure of assemblies and sub assemblies. The first level is represented by the MPS and is 'exploded' down to final assembly. Thus a given number of finished products is exploded to see how many items are required at the final assembly stage.
Netting
The next step is 'netting', in which any stock on hand is subtracted from the gross requirement determined through explosion, giving the quantity of each item needed to manufacture the required finished products.
Offsetting
The final step is 'offsetting'. This determines when manufacturing should start so that the finished items are available when required. To do so a 'lead time' has to be assumed for the operation. This is the anticipated time for manufacturing.
The whole process is repeated for the next level in the BOM and so on until the bottom is reached. These will give the requirements and timings to outside suppliers.
There are three major assumptions made when constructing an MRP schedule:
The first, and possibly the most important, is that there is sufficient capacity available. For this reason MRP is sometimes called infinite capacity scheduling.
The second is that the lead times are known, or can be estimated, in advance.
The third is that the date the order is required can be used as the starting date from which to develop the schedule. -
Difference between MRP group and plant parameters
hai friends,
please let me know, what is the main difference between the MRP group and plant parameters?,
what are the extra activities or features with one, when compare to the other?.
Edited by: Mourya.v on Sep 22, 2010 6:36 AMDear Mourya,
Why to assign MRP group? - If planning for each plant is not specific enough for your purposes and you would like to assign
control parameters that differ from the control parameters defined for the plant to certain material groups.
1.For all materials without an MRP group, the system uses the plant parameters that is the settings present in OPPQ, or the
entries in the initial screen of the planning run.
2.For all materials with an MRP group, the system uses the parameters recorded in the MRP group that is the settings in OPPR.
3.The MRP group is an organizational object that can be used to allocate special control parameters for planning to a group of
materials. You can maintain MRP groups if planning control per plant is not precise enough for your requirements and you want
to allocate certain material groups different control parameters from the plant parameters. For this purpose, MRP groups are
defined with these specific control parameters and are assigned to the material in the material master record (MRP 1 screen).
4.The MRP group, groups material from the material requirements planning point of view to allocate them control parameters for
planning.The control parameters include the strategy group, the planning horizon and the creation indicator for the planning run.
Also check this link [Settings in OPPQ & OPPR|oppr and oppq]
Regards
Mangalraj.S -
Hi Experts:
Anybody can explain me about Types P1, P2, P3, P4?
Thanks.
DiegoPlease check this..
[http://help.sap.com/printdocu/core/Print46c/en/data/pdf/PPMRP/PPMRP.pdf]
And
MRp Type P1 or M1:
Ans: THe order proposal that lies within the planning time fence is firmed automatically as soon as its date lies at least one day before the finish date of the planning time fence. The date of new order proposals that are actually created in the planning time fence are rescheduled out to the end of the planning time fence. Therefore, these new order proposals are not firmed
MRP type P2 or M2:
Ans: An order proposal that lies within the planning time fence is automatically firmed as soon as its date lies at least one day before the end of the planning time fence. The system does not create any new order proposals within the planning time fence. That is, the shortage situation is not adjusted within the planning time fence.
MRP type P3 or M3:
Ans: Order proposals that lie within the planning time fence are not firmed automatically. The order proposals required to cover the requirements are moved to the end of the planning time fence
MRP type P4 or M4:
Within the planning time fence, the system creates no order proposals automatically. That is, the shortage situation is not adjusted within the planning time fence.
M4 is to classify the MS parts and P4 is for normal MRP items. BOm will be exploded in both cases to lower levels if procurement proposals created within or outside the time fence.
karthick -
Difference between MRP Type PD and VB
Hi All,
I have a scenario, in which i have some doubts which i have mentioned below.
1. MRP Type 'PD' with maintaining Safety stock for the materials which have longer lead time. Will the safety stock which exists will cover both excess material consumption within the replenishment lead time and any additional requirements that may occur due to delivery delays.
2. MRP Type 'VB' with maintaining Safety stock, reorder point, Maximum stock level for the materials which have longer lead time. Here the safety stock which exists will cover both excess material consumption within the replenishment lead time and any additional requirements that may occur due to delivery delays.
3. MRP Type 'ND' with maintaining Safety stock.
Of all these 3 MRP Types, what will be the outcome after doing the MRP Run? Should I go for separate MRP run for VB type materials?
Please give the solution.
Regards,
RamHi Ram,
PD: this requirement type considers teh requirements in terms of Sales orders,PIRs stock transfer requireements etc for the material and then does the net requirement calculation and creates procurement proposals accordingly. it also considers safety stock while doint the net requiremetn calculation.
VB: generally used for items with a fairly consistent consumption pattern. here the requirement depends on the safety stock and the current stock. if the current stock goes below the reorder point, then only a requirement is generated. besides the safety stock it does not consider any othe requirement.
ND; these items are not planned. so no effect of MRP run
normally for the VB type materials, a background job is scheduled that does the MRP run at predefined schedules.
even for items with PD, the MRP job can be scheduled at predefined intervals according to the MRP controllers or some other parameters like production schedulers, MRP group etc.
please let me know if u need more details
Edited by: vishal ashar on Jan 21, 2009 7:22 AM -
Iyappa D
<copy&paste_and_everything_else_removed_by_moderator>
Girish
Edited by: Julius Bussche on Sep 3, 2008 8:51 AM -
Dear All
I am basically PM consultant & trying to learn MM module. What is the difference between MRP type VB & PD??
RegardsHi,
MRP type PD is net requirement planning:Which means system will check how much stock is availiable and how much is the requirement.If there is a shortage then system will create procurement proposals
MRP Type VB:Manual reorder point planning:Here you need to define reorder point in material master in MRP view.When the stock level reaches the re order point then system will create a procurement proposals
Regards,
Manish -
Difference between To maintain and initial in plant parameters in MRP custo
Hi, Gurus,
Can anyone explain me about the difference between status showing
to maintain and initial in plant parameters in MRP customization
Thanks & Regards
sathyanarayanaDear Sathyanarayana,
In T code OPPQ - Maintain Plant Parameters,it does not
mean we have to maintain a value in all the parameters
present under different tab keys.
IF you check generally MRP controllers,Floats,Number
Ranges,BOM/Routing Selection,Planning horizon,Available
stock these values will be maintained.
Some of the settings like Start in Past will be as Initial(not
allowed in the past).
IF you use some special procurement key,then that settings
has to be maintained.
I hope this will help you.
Regards
Mangal -
What is the difference between scheduling agreement and delivery schedule
Hi
1. Can anyone explain me the difference between scheduling agreement output
and scheduling agreement delivey schedule
Will the both look same in T.code SP02 when seeing the output for a document.
Can anyone send me T.codes for above ones in purchasing.
2. when seeing the Detailed statement for rebate agreement,there is item number.
In which table can we see the item number for rebate agreementHi,
If you have to deal with more complex situations, you can define a delivery cycle in the material master record in addition to the planning cycle. In so doing, you determine the days on whichthe vendor delivers his goods. The delivery cycle is entered in the material master record as a planning calendar in the Planning calendar field.
You enter a delivery cycle if the delivery date (or the goods receipt date) depends on the day on which you order the goods. For example, you carry out the planning run and place your orders on Mondays and Tuesdays. If you place the order on Monday, the delivery is made on Wednesday, if you wait until Tuesday to place the order, the delivery is not made until Friday
Where as Planning calander is Three character number (numeric or using letters) that specifically identifies a PPS-planning calendar. The difference between Planning calender and delivery cycle is If you have selected the MRP type "MRP" and have set a period lot-sizing procedure according to planning calendar, you enter here which planning calendar is to be used.
If you selected the "time-phased planning" MRP type, the planning calendar that you specify here defines the delivery cycle. This specifies the days on which the vendor delivers the material. You can enter the planning cycle in addition to the delivery cycle -
Difference between Delivery, Sales order and Shipment
Hi
I would like to know difference between sales document, delivery document and shipment.
When is the delivery created? What data will it have?Hi
<b>Sales Documents </b>
Sales-related business transactions are recorded in the system as sales documents. These are grouped into four categories:
Pre-sales documents: inquiries and quotations
Sales orders
Outline agreements, such as contracts and scheduling agreements
Customer problems and complaints, leading to free-of-charge deliveries and credit memo requests
If your particular business processes require it, you can process deliveries and billing documents directly from a sales document. In addition, some sales documents, such as cash sales and rush orders automatically trigger the creation of subsequent delivery and billing documents.
Basic Functions Within Sales Order Processing
During sales order processing, the system carries out basic functions, such as:
Monitoring sales transactions
Checking for availability
Transferring requirements to materials planning (MRP)
Delivery scheduling
Calculating pricing and taxes
Checking credit limits
Creating printed or electronically transmitted documents (confirmations and so on)
<b>Delivery Processing</b>
In its role as central object of the goods issue process, the outbound delivery supports all shipping activities including picking, packing, transportation and goods issue. During the outbound delivery process, shipping-planning information is recorded, status of shipping activities is monitored and data accumulated during shipping processing is documented. When the outbound delivery is created, the shipping activities, such as picking or delivery scheduling, are initiated, and data that is generated during shipping processing is included in the delivery.
Range of Functions
An outbound delivery can be created as follows:
With reference to a sales order
With reference to a stock transport order
With reference to a subcontract order
<b>Shipping </b>
Shipping is an important part of the logistics chain in which guaranteed customer service and distribution planning support play major roles.
In shipping processing, all delivery procedure decisions can be made at the start of the process by
Taking into account general business agreements with your customer
Recording special material requests
Defining shipping conditions in the sales order
The result is an efficient and largely automatic shipping process in which manual changes are only necessary under certain circumstances.
Integration
The Shipping component is integrated under the Logistics Execution component. Shipping is a subsequent activity of the Sales component.
Range of Functions
The shipping module supports the following functions, which include but are not limited to:
Deadline monitoring for reference documents due for shipment (sales orders and purchase orders, for instance)
Creating and processing outbound deliveries
Planning and monitoring of worklists for shipping activities
Monitoring material availability and processing outstanding orders
Monitoring the warehouse's capacity situation
Picking (with optional link to the Warehouse Management system)
Packing deliveries
Information support for transportation planning
Support of foreign trade requirements
Printing and transmitting shipping documents
Processing goods issue
Controlling using overviews of
o Deliveries currently in process
o Activities that still are to be carried out
o Possible bottlenecks -
Differences between MD01 and MD02.
Dear SAP Experts,
Please tell me the various differences between MD01 and MD02.
In which specific cases, MD01 should be used??
Thanks and regards,
Kaushik Basu.Hi,
1. Md01 is the MRP Run for plant by giving planning scope.
2. Md02 is the mrp run for single Material from plant .
Also refer following T code for your information
Menu Nodes
Transaction
Activity
Master Data
MD25
Create planning calendar
MD26
Change planning calendar
MD27
Display planning calendar
MDSA
Display BOM explosion number
MDSP
Edit BOM explosion number
MEQ1
Maintain quota file
OPPP
Explode BOM by date
MDUS
Display project assignment
MDUP
Process project assignment
MDL1
Create production lot
MDL2
Change production lot
MDL3
Display production lot
Planning
MD20
Create planning file entry
MD21
Display planning file entry
MDAB
Set up planning file entry in background
MDRE
Check planning file entry
MD01
Total planning online
MDBT
Total planning in background
MD03
Single-item, single-level planning
MD02
Single-item, multi-level planning
MD43
Interactive single-item planning
MD50
Multi-level, make-to-order planning
MD51
Multi-level project planning
MF52
Display planning table
MF50
Change planning table
MF57
Planning table by MRP lists
MF51
Planning table by production list
Evaluations
MD04
Stock/requirements list
MD07
Collective access of stock/requirements lists
MD05
MRP list
MD06
Collective access of MRP lists
MDLD
Print MRP list
MD45
Planning result
MD46
Collective access of planning result
MD44
Planning situation for a material
MD47
Planning situation for a product group
MD48
Cross-plant planning situation
MD4C
Order report
MD09
Pegged requirements
CO46
Order progress
Planned Order
MD11
Create planned order
MD12
Change planned order
MD13
Individual access of planned order
MD16
Collective access of planned orders
MD14
Individual conversion of planned order into purchase requisition
MD15
Collective conversion of planned orders into purchase requisitions
MDUM
Convert planned order into purchase requisition in background
CO40
Convert individual planned order into production order
CO41
Collective conversion of planned orders into production orders
CO48
Partial conversion of planned order into production order
COR7
Individual conversion of planned order into process order
COR7_PC
Collective conversion of planned orders into process orders
COR8
Partial conversion of planned order into process order
MDVP
Collective availability check
MDAC
Execute action for planned order
Hope it clear to u.
Edited by: Atul Zod on Nov 21, 2008 6:59 AM -
What is the differences between the older version of Oracle Financials and the 11 i
What is the differences between the older version of Oracle Financials and 11i?
Vijay,Thanks for your answer,but I am still not clear about it,I have a instance to describe my question at detail.
If there is a final product A, and the planning strategy for A is 20(MTO), the procurement type of A is F(external procurement) at the view mrp2 in the material master datas.
step1: I creat a sales order.
step2: run MRP for A.
step3: transfer the purchase requistion into a purchase order,and the field of acc.***.cat. in the purchase order will be filled out M automatically, because the acc.***.cat. in the planning strategy 20(MTO) is set with E.
Well, the purchase order is created, what is the relationship between the sales order and the purchase order? What will be happened about costing between the SO and the PO?
If I delete the E, I make the PO become a standard PO, what is difference between standard PO and the PO including E?
Best Regards
Bob -
Difference between ME58 and ME59
HI,
What is the difference between ME58 and ME59 transactions?HI,
ME58 allows the user to pick assigned requisitions and manually convert them into POs. First you enter the criteria to select the purchase requisitions. These are then grouped by vendor (and contract). User manually selects a vendor to process. Select the order type, purchasing group etc., copy the requisition lines into the PO and save.
ME59 selects requisitions and lists the ones it was able to convert into POs.
There is a big difference on the level of control between the two transactions and businesses using ME59 should put a manual review step in if they are converting requisitions generated from MRP.
Reward Points if found helpfull..
Cheers,
Chandra Sekhar. -
Difference between wc27 and md01 transactions?
Hi Experts,
Could you please tell me what is the difference between wc27 and md01 transactions?
Best Regards,
Parag Save.MD01 is the transaction for running the MRP in the foreground (online). WC27 is for running the MRP in the background (batch), but you can also do via MDBT. In MDBT when you create or edit total planning variant you are running the same program as WC27. Typically you use just MDBT if you want to create MRP batch jobs.
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