MAterial Resource Planning (MRP)

Hi,
Can you tell me what is Material Resource Planning (MRP)? How & why is it used in SAP MM?
Regards,
Krutika

hi
it is Material Requirements Planning
Material Requirements Planning (MRP) enables you to plan material requirements for a manufacturing or procurement process.
MRP calculates gross requirements for the highest Bill of Materials level based on sales orders and independent demands. It calculates gross requirements at the lowest Bill of Materials levels by carrying down net parent demands through the Bill of Materials structure. The dependent levels might have their own independent demands, such as sales orders and forecasts.
The results of the MRP run are recommendations that fulfill gross requirements by taking into consideration the existing stock levels and existing purchase and production orders. The MRP run also takes into account defined planning rules for Order Multiple, Order Interval, and Minimum Order Quantity.
Recommendations are back scheduled by the defined lead time to arrive at the requirement dates for their own components.
plz check following
http://www.saptechies.com/category/production-planning/material-requirements-planning/
http://www50.sap.com/businessmaps/1BD448892DEA413E9D270C761DEB251C.htm
http://www.sap123.com/showthread.php?t=89
http://www.sap123.com/showthread.php?t=57
http://jan.ucc.nau.edu/tlj3/MRP%20and%20Material%20Purchasing%20with%20SAPSCH.doc
regards
kunal

Similar Messages

  • Question about distribution resource planning in pp module

    hi, my all respected sir,i want to ask question as below
    1) what do you mean by distribution resource plannning and what are steps occour in this planning?
    2) what is the difference between drp and mrp?
        thank you , all of you
      ok by

    Hi,
    Distribution Resource Planning (DRP) is a method used in business administration for planning orders within a supply chain. DRP enables the user to set certain inventory control parameters (like a safety stock) and calculate the time-phased inventory requirements.
    DRP uses several variables:
         the on-hand inventory at the end of a period.
         the backordered demand at the end of a period.
         the required quantity of product needed at the beginning of a period.
         the constrained quantity of product available at the beginning of a period.
         the recommended order quantity at the beginning of a period.
             DRP needs the following information:
         the demand in a future period.
         the scheduled receipts at the beginning of a period.
         the safety stock requirement for a period.
         the on-hand inventory at the beginning of a period.
    check this link:-
    http://help.sap.com/printdocu/core/Print46c/en/data/pdf/PPSOPDRP/PPSOPDRP.pdf
    Material Requirements Planning (MRP) is a software based production planning and inventory control system used to manage manufacturing processes. Although it is not common nowadays, it is possible to conduct MRP by hand as well.
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         Maintain the lowest possible level of inventory.
         Plan manufacturing activities, delivery schedules and purchasing activities.
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    Hello Shailesh
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  • What is Material Requirement Planning

    what is Material Requirement Planning since i am a beginner in Supply chain management

    Material Requiremnts plan and master schedule (MRP) answers two quisitions:
    1. How mauch you need to supply (Make/Buy).
    2. How much resource Hours needed to produce.
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  • Distribution resource planning, Distribution requirement Planning

    Hi PP Gurus
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    2. Transactions to complete business scenario.
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    Dear
    Distribution Resource Planning
    Distribution resource planning provides a framework for determining the need to replenish
    inventory by:
    Linking market requirements with manufacturing and demand management
    Relating current inventory positions and demand forecasts to production scheduling
    Matching material supply to manufacturing demand, and customer demand to product
    supply
    Process Flow
    1. You define all nodes in the network including plants, distribution centers (DCs),
    warehouses, and stock transfer points using the Distribution Network tool.
    2. You set up the material master record for each node. In MRP 4 of the material master
    record, you must define the deployment strategy for each material (the fair and push
    distribution options) as well as deployment horizon (push horizon). For the push horizon,
    enter the number of days for which the system considers the ATD quantity and any
    additional quantity produced. Any quantity produced beyond the push horizon is not
    considered in the deployment calculation.
    3. To calculate an available to deploy (ATD) quantity, use the availability check rule, DE, in
    Customizing, u2018Carry out control for availability check.u2019 The availability check and the
    deployment checking rule, determine the MRP elements that are used to calculate the
    ATD quantity.
    4. You create a forecast for each DC; for example, a sales forecast.
    5. You transfer the forecasted data to Demand Management. The system creates
    independent requirements.
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    the quota arrangements defined in the network, available stock, sales orders, and
    independent requirements.
    The DRP run in the DCs creates releases for stock transport requisitions in the
    supplying plants.
    The DRP run in the supplying plants creates planned orders for production.
    7. You convert planned orders into production orders for manufacturing.
    You run deployment to produce stock transport orders for distribution of stock from the supplying
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    Distribution Requirement Planning :
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    Accounts for time-dependent safety stocks when the replenishment stock is calculated.
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    Deployment
    When demand is greater than supply, deployment calculates a fair share quantity based on the available-to-deploy (ATD) quantity and requirements in the distribution centers to be supplied.
    When supply is greater than demand, deployment calculates distribution of stock using pull or push logic within the distribution network according to planned requirements.
    Generates stock transport orders from suggested orders in the DRP plan.
    Prioritizes quantities supplied based on requirements types (customer order, forecast, and safety stock).
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    Represents simple capacity constraints, and combines the percentage-based and maximum quantity approaches.
    Lets you establish minimum, maximum, and rounding profiles for lot sizing within the network.
    Lets you change the distribution network at future dates.
    Lets you offset delivery times for specific items from the sourcing location to the replenishment location.
    Single-Sourcing Using Special Procurement Keys
    Hope this above details will be useful for your requirement .
    Regards
    JH

  • Concept and Steps of Distribution Resource Planning.....please reply

    Hi Experts,
    Can anyone tell me about the concept and steps to exicute Distribution resource planning in pp?
    Please help experts.
    Regards,
    sap pp
    Edited by: sap  pp on Jan 15, 2009 9:48 AM

    Hi,
    Distribution Resource Planning
    Purpose
    Distribution resource planning provides a framework for determining the need to replenish
    inventory by:
    Linking market requirements with manufacturing and demand management
    Relating current inventory positions and demand forecasts to production scheduling
    Matching material supply to manufacturing demand, and customer demand to product
    supply
    Process Flow
    1. You define all nodes in the network including plants, distribution centers (DCs),
    warehouses, and stock transfer points using the Distribution Network tool.
    2. You set up the material master record for each node. In MRP 4 of the material master
    record, you must define the deployment strategy for each material (the fair and push
    distribution options) as well as deployment horizon (push horizon). For the push horizon,
    enter the number of days for which the system considers the ATD quantity and any
    additional quantity produced. Any quantity produced beyond the push horizon is not
    considered in the deployment calculation.
    3. To calculate an available to deploy (ATD) quantity, use the availability check rule, DE, in
    Customizing, u2018Carry out control for availability check.u2019 The availability check and the
    deployment checking rule, determine the MRP elements that are used to calculate the
    ATD quantity.
    4. You create a forecast for each DC; for example, a sales forecast.
    5. You transfer the forecasted data to Demand Management. The system creates
    independent requirements.
    6. You perform a DRP run in each DC and in each supplying plant. The DRP run considers
    the quota arrangements defined in the network, available stock, sales orders, and
    independent requirements.
    The DRP run in the DCs creates releases for stock transport requisitions in the
          supplying plants.
    The DRP run in the supplying plants creates planned orders for production.
    7. You convert planned orders into production orders for manufacturing.
    You run deployment to produce stock transport orders for distribution of stock from the supplying
    plants to the DCs.
    Hope you are a bit clear now.
    Still not, refer the following link for easy understanding. Its given with simple steps and examples,
    http://help.sap.com/printdocu/core/Print46c/en/data/pdf/PPSOPDRP/PPSOPDRP.pdf
    Regards,
    Vinodh

  • Distribution Resource planning

    What is Distribution Resource planning ? Please explain me with few examples?
    thanks in advance
    PSS

    Hi there,
    Purpose
    Distribution resource planning provides a framework for determining the need to replenish
    inventory by:
    • Linking market requirements with manufacturing and demand management
    • Relating current inventory positions and demand forecasts to production scheduling
    • Matching material supply to manufacturing demand, and customer demand to product
    supply
    Process Flow
    1. You define all nodes in the networkincluding plants, distribution centers (DCs),
    warehouses, and stock transfer pointsusing the Distribution Network tool. See
    2. You set up the material master record for each node. In MRP 4 of the material
    master record, you must define the deployment strategy for each material (the fair and
    push distribution options) as well as deployment horizon (push horizon). For the push
    horizon, enter the number of days for which the system considers the ATD quantity and
    any additional quantity produced. Any quantity produced beyond the push horizon is not
    considered in the deployment calculation.
    3. To calculate an available to deploy (ATD) quantity, use the availability check rule,
    DE, in Customizing, ‘Carry out control for availability check.’ The availability check and
    the deployment checking rule, determine the MRP elements that are used to calculate
    the ATD quantity.
    4. You create a forecast for each DC; for example, a sales forecast.
    5. You transfer the forecasted data to Demand Management. The system creates
    independent requirements.
    6. You perform a DRP run in each DC and in each supplying plant. The DRP run
    considers the quota arrangements defined in the network, available stock, sales orders,
    and independent requirements.
    • The DRP run in the DCs creates releases for stock transport requisitions in the
    supplying plants.
    • The DRP run in the supplying plants creates planned orders for production.
    7. You convert planned orders into production orders for manufacturing.
    You run deployment to produce stock transport orders for distribution of stock from the supplying
    plants to the DCs.
    Running DRP
    Purpose
    In DRP, during the net requirements calculation, the system compares available stock and the
    scheduled receipts from the supply source with planned independent requirements and incoming
    sales orders. If there is a material shortage (available stock is less than the quantity required),
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    based on the lot-sizing procedure you specify in MRP 1 of the material master record.
    The system also schedules the order proposal. Delivery and release dates are determined from
    the transport time and time associated with goods receipt processing.
    The system can process DRP for the whole supply chainincluding the production plants. DRP
    includes production and purchasing into the planning process for the production plant.
    Prerequisites
    In order to perform a DRP run, you must:
    • Set up a distribution network, including identification of quota arrangements and lead
    times.
    • Define MRP parameters in the material master record for all the materials in the
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    Process Flow
    1. You schedule the DRP runs for your network in the same way you would schedule an
    MRP run.
    2. You perform the DRP run:
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    – A DRP run on one plant is the same as total planning in the MRP run. Single-plant
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    requirements planning.
    – A DRP run using mass processing allows you to process several locations at once so
    that the whole supply chain is planned.
    3. You use net change planning to plan only materials that change relevant to distribution
    requirements planning since the last planning run (for example, change in a sales order
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    4. If you are using mass processing, determine the sequence in which the series of DRP
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    Result
    The information resulting from the DRP runs includes purchase requisitions and scheduling
    agreements. Use these to plan how to supply the distribution centers in your network. The DRP
    run in the DCs creates releases for stock transport requisitions in the supplying plants. A DRP
    run on the supplying plants creates planned orders for production.
    Regards
    Hemant G

  • Creation Indicator in PR: B Material Requirement planning

    Hi All,
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    Regards
    Shilpi
    Edited by: sapmm1234 on Dec 14, 2011 6:10 PM

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    BR
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  • Need Resource planning tool in ECC 6.0

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