MRP based planning

hi guys,
what is MRP based planning and why it is used?Under what conditions do we go for MRP based plannig for procurement of materials?

I will suggest you to read the SAP help on MRP first.
http://help.sap.com/erp2005_ehp_04/helpdata/EN/f4/7d3f9344af11d182b40000e829fbfe/frameset.htm
Anyway i am trying to explainn you this functionality:
The Concept Of MRP in SAP
MRP in brief :
MRP is the planning tool in SAP which will look at all aspects of a material and is highly based upon the master data of the material. MRP looks at current inventory, current requirements, open purchase req/orders and so on. So if a material is required to satisfy a sales order and there is no inventory, MRP will create a planned order if the item is to be produced in house. This planned order can then be converted to a production order by the master scheduler. If the item is to be procured, then MRP will create a purchase req which the Buyer will convert to a purchase order. This is just one scenario, the system is highly configurable and will do pretty much whatever you tell based on config and master data.
Consumption based planning
- Reorder planning
- Forecast based planning
- Time phased planning
Details of re-order planning
Our motive is to maintain optimum stock level of all the material included in the resource planning. so in this user or system sets a particular quantity of stock as reorder point . Whenever stock quantity fall below this point(reorder point) mrp comes into action and generates procurement proposals according to the settings done in implementation guide
MRP run procedure
1. Create requirement or demand in MD61
2. MRP run by MD02 for a single material
3. See the result in stock requirement list in MD04.
MRP run we can carry out by
1. MD02 - single item multi level
2 .MD03 - single item single level
3 .MD01 - Total planning
4. MD04 Check MRP
5. MD05 MRP lists
Edited by: Manish Kumar Agarwal on Jun 4, 2009 12:23 PM

Similar Messages

Combined use of Consumption-based and MRP-based planning

Hi experts,
My user requested me to setup a requirement planning for a particular type of material but the net calculation is considered by the past history and its planned independent requirements. From my understanding, the MRP procedure maintained in the MRP type can only be chosen either from CBP or MRP.
Could someone give me advice on how to solve the problem? Many thanks.
Eddy

Hi Eddy
It's possible to run the forecast for this material and then transfer the results do demand management to generate PIRs.
You can do that using a standard MRP type, such as PD.
You can transfer the forecast using MD70 program RM60FORC.
BR
Caetano

MRP Type VV - Forecast Based Planning

Hi all,
My company would like to look at MRP Type "VV" - Forecast Based Planning (under Consumption-based Planning) for FG production materials.    I've read quite a bit about the concept and some based set up to how it works.   We would like to base Planned Orders > Production Orders based on this type of forecast planning.   It seem that SAP advises this kind of plannig for Raw Materials but not FG.   Anyway, what I really need to know are the specifics of how you set up the master data (in the Material Master) to properly execute this type of MRP: like....
MRP Type: VV
Lot Size: EX
Period Ind: W
Availability Check: 02
Forecast Period:   12
Periods per Season: 12
Historical periods: 60
other fields I'm not sure......
RP Profile: ??
Forecat Profile: ??
what else......?
Also, what is the recommended approach to convert this forecast plan into Planned requirements to be converted to Production Orders?
I appreciate any further information I can get on MRP Type "VV" and how it works.   I appreciate your input!

Thanks for the info nudratmaab.    Can you provide further data on what to expect given this forecast.....say I pick MVGA (Moving Average Forecast)? So I enter some consumption (say last 12 months) and run forecast (MP38).    The MD04 shows the average requirement per "W" bucket:
02/23/2012     ForReq     W 08/2012                16-
02/27/2012     ForReq     W 09/2012               116-
03/05/2012     ForReq     W 10/2012               116-
03/12/2012     ForReq     W 11/2012               116-
03/19/2012     ForReq     W 12/2012               116-
03/26/2012     ForReq     W 13/2012               116-
04/02/2012     ForReq     W 14/2012               116-
04/09/2012     ForReq     W 15/2012               116-
04/16/2012     ForReq     W 16/2012               116-
04/23/2012     ForReq     W 17/2012               116-
04/30/2012     ForReq     W 18/2012               116-
05/07/2012     ForReq     W 19/2012               116-
The next part is where it is a little foggy for me.   For "VV" do I run WRP1 (Replenishment) or do I run MD02/ 03 (MRP) and then what is the ForReq converted to (or does it even convert)?   I'm looking to implement this for Production Planning Requirements for Finished Produced products (I need them to convert to PldOrd (Planned Orders) to be converted to PrdOrd (Production Orders) by production scheduler.
The second part of this is the Raw Material (BOM component) associated with these Finished Goods. THese BOM components are set up as MRP Type "PD" and Lot size "EX" and I was hoping that the FG MRP run would also do BOM explosion and drive requirements for the Raw Material as well.....I'm not seeing that.
I need professional / expert to tell me how this works:    So MRP Type "VV" & Lot Size "EX" for the Finished Goods.......and MRP TYpe "PD" & Lot Size "EX" for the Raw Material (BOM Component).....
THanks again!!

Usage of MRP Procedures in Consumption Based Planning during Implementation

We have following procedures in CBP:
1. Reorder Point Planning- Manual and Automatic
2. Forecast based Planning
3. Time phased Planning.
In SAP implementations, which of these procedure is mostly used in companies in real time.
Though the CBP planning node is in MM SPRO and MM study material also contains CBP. During implementations, for CBP the responsibility rests with MM consultant or PP Consultant or both.
Please share your views on this.

Dear ,
Let me share my views on this as we are runing CBP-Forcast base planning in our trading business .
Decision on CBP-Forecast base planning method are based on the following criteria
1.Stockable and low value material
2.Fast Moving with good sales pattern ( Trend Analysis , Historical Trend analysis on Product Group , Statistical Sales analysis )
3.Inventory turn around based on the monthly physical inventory and sales
4.Good service level percentage over an period .
5.Consumption pattern .
Decision on CBP-Re-order point planning method are based on the following criteria
1. Material which are higher valu and Non Stockable
2. Customer oriented traded goods
3. Strategic vendor with good Sales pattern .
4.Re-order Level based on Sales Forecast (Manual or Automatic )
In SAP implementations, which of these procedure is mostly used in companies in real time : It is based on the business requirement (Trading /Manufacturing ) .Mostly Trading business goes for CBP-Forecast Base planning method (MRP Type -VV) IF THE MATERIALS HAS GOOD CONSUMPTION PATTERN OVER A PERIOD OF TIME .
MRP is both the part of Supply Chain Planning and Manufactruing . Material master parameters are maintained by MM .CBP is one kind of MRP where Demand Management comes into PP whereas after MRP run , procurement proposal handeled by MM.So there is no hard and fast rule that it is only part of PP.It is the combination of MM and PP.
Hope this will help you to analysise your requirement .
Regards
JH

Scheduling agreement with Consumption based planning

Dear Experts,
I Have a Scenario,
I need to Bulit a Laptop which is a Finished Material, and the Components like Hardisk, Processor, Ram, Casing, Monitor are my Rawmaterials. By using these rawmaterials we are building the parent material.
My Client requirement is 1) Plan and schedule the requirement
2) Replenish the stock based on consumption based planning.
My query is
1) How should i proceed for mm based procurement ?
2) Does i need to create scheduling agreement for rawmaterials and and maintain schedule lines ?
3) For which materials i need to run the MRP ? weather its parent material or Component material ?
4) What are the sequence of process need to be carried out ?
Required ur valuable inputs on this.
Best Regards
SAP LEARNER
Edited by: JAVEED AHAMED on Feb 12, 2010 8:34 AM

Hi
Consumption based planning and Scheduling agreement are two different functions.
Consumption-based planning is based on past consumption values and uses the forecast or other statistical procedures to determine future requirements. The procedures in consumption-based planning do not refer to the master production schedule. That is, the net requirements calculation is not triggered either by planned independent requirements or dependent requirement. Instead, it is triggered when stock levels fall below a predefined reorder point or by forecast requirements calculated using past consumption values.
A form of outline purchase agreement under which materials are procured on predetermined dates within a certain time period.
With release documentation (in the standard system, document type LPA)
The schedule lines in the system have internal character. This means that you can change them in any way you wish. The schedule lines stored in the system are not transmitted to the vendor until you explicitly create a scheduling agreement release (which may take one of two forms: a forecast delivery schedule or a JIT delivery schedule).
The release documentation allows you to display the releases transmitted to a vendor over a certain period in order to establish exactly when you transmitted which information to the vendor.
Without release documentation (in the standard system, document type LP)
The schedule lines immediately have official character, i.e. they are immediately transmitted to the vendor the moment you save them (transmission time-spot 4 for messages). There is no release documentation in this case.
It cannot be explained in few lines. You need to study the below link.
http://help.sap.com/saphelp_erp60_sp/helpdata/en/75/ee1fa755c811d189900000e8322d00/frameset.htm
http://help.sap.com/saphelp_erp60_sp/helpdata/en/7d/c2821c454011d182b40000e829fbfe/frameset.htm

Can we use MRP to plan for FERT in-house produced with PIR's & has Min/Max

Hi SAP Guru's
I have a very critical issue from the client who wants to use MIN/ MAX stock values for planning its finished products (in-house produced)
here is the details of the scenario
Client recieves 2 Excel files every week from customer
1st file contains the Weekly Demand Forecast of FERT material for next 1 year and they upload it in MD61 as PIR's BUT this value is also Inclusive of Safety stock value (ex: if weekly demand entered in MD61 as PIR is 50 and if safety stock value is 10, then actual demand is only 40)
2nd file send contains only safety stock values (for ex in this case let it = 10) to be maintained for the FERT materials
the client wants MRP to plan and trigger based on this PIR's in MD61 and Safety stock level fand plan for FERT, HALB and also ROH materials as defined in the BOM also taking into consideration the current WIP levels (Work in progress for any existing production orders currently being processed) based on the production Lead times values maintained
so what the client wants is they want to maintain 2 stock values, that is one least stock value and other higher value which if stock falls below this point, will trigger production based on the lead time and considering any WIP levels also
(for ex in this case if PIR = 50 and safety stock is 10, MRP run result client wants is = 30 and NOT =40)
so here are my questions
1. is this scenario feasible? use safety stock and min/max level for in-house produced finished which has demand PIRs in MD61 at the same time?
2. Also due to SOX complaince regulations, the client does not want to change the forecast values in MD61, so is it possible to make some settings so that forecast is corrected by WIThOUT including the safety stock value in it? ( for ex: in this case as = 40 only and NOt as 50)
3. which all settings should i maintain like for MRP type or lot size or stock qty levels or anyother customizations if any required so that when we run MRP, can it ignore the safety stock value and generate the client desired output?
thank u verymuch for your time & expert advice in advance

Hi Chakri,
This is not possible as per standard functionality. MRP always creates proposals for the shortage quantity of the safety stock. We have used the user exit in the plant level MRP run to exclude both plant and safety stock in the net requirements calculation.
You have to write logic to convert the safety stock into plant stock in the user exit so there will be no additional procurement proposals...you can create custom indicatar in materail master or linked any existing indicator like MRP group to the user exits so the MRP will checks this and will not create proposals for the selected parts.
If you have any questions then please inform.
Regards
TAJUDDIN

Consumption based planning

Hi,
I need to configure the CBP based on Past consuption data of 3 months and also it should give me future forecast values for 3 months. also I want to use safety stock and Reorder level.
Which MRP type should be used and what are configuration setting required for the same.
Also pl.guide me on What will happen if there is sedden rise in the requirement is any month?
Thx

Hi,
MRP supports and helps the MRP controller in the task areas. These tasks include
determining type, quantity and time of the requirement, and scheduling corresponding
procurement elements. The automatic planning run for MRP determines shortage situations and generates the corresponding procurement elements. Possible
procurement elements of MRP are planned orders, purchase requisitions and
scheduling agreement schedule lines. The planned order and purchase requisition are
internal planning elements that can be changed, rescheduled or deleted at almost
any time.
In in-house production, the system creates planned orders for planning production
quantities. When planning has finished, the system converts the planned orders into
production orders. The system then converts the dependent requirements in the
planned order into reservations in the production order.
In external procurement, the system either creates a planned order or a purchase
requisition for direct planning of external procurement quantities. Whether purchase
requisitions are created for direct planning, or planned orders are created first, you
can use the creation indicator for purchase requisitions/MRP groups in the material
master record on the initial screen of the planning run. When planning has finished,
the planned order must be converted to a purchase requisition, which is subsequently
converted to a purchase order. The advantage of creating a planned order first is
the additional procurement proposal check that is executed by the MRP controllers.
Purchasing can only order the material when the MRP controller has checked the
planned order and converted it into a purchase requisition. Otherwise, the procurement proposal is immediately available for Purchasing.
Planning Levels of Consumption-Based Planning
Requirements planning takes place at plant level. In other words, the entire stock that
exists in the plant is considered in planning. However, the stocks of individual storage
locations can be excluded from MRP or planned independently. These stocks are then
not included in MRP at plant level. You can also execute requirements planning
for individual MRP areas. You can define the MRP areas yourself. This means
that several storage locations can be grouped together for one MRP area and that
requirements planning can be executed separately from the plant for these MRP areas.
MRP areas enable a differentiation of material requirements planning within a plant.
(MRP areas include the function of storage locations that are planned separately for
materials requirements.)
Planning Levels for Materials Planning is either
1. The Plant with Storage locations planned separately.
2. MRP areas
Basically, MRP areas are optional. You can plan all material requirements without referring to MRP areas.
There are three different types of MRP areas:
1. Plant MRP areas (obligatory) that are automatically created by activating
planning with MRP areas. Their numbers match the number of the plant. If no
more MRP areas are defined, the plant MRP area covers the entire plant.
2. Storage location MRP areas that are defined by the storage locations assigned
to them.
3. Subcontractor MRP areas that provide planning of the requirement of the
material provided for a subcontractor and are defined by the assignment of
this subcontractor.
Prerequisites for Consumption-Based Planning
The following prerequisites must have been fulfilled in order to carry out requirements
planning for a plant:
Requirements planning for the corresponding plant must be activated in
Customizing for Materials Management under Consumption-Based Planning u2192
Planning u2192 Activate Material Requirements Planning.
T-code - OMDU
The plant parameters for the corresponding plant must be activated in
Customizing for Materials Management under Consumption-Based Planning u2192
Plant Parametersu2192 Carry Out Overall Maintenance of Plant Parameters.
T-code - OMI8
In the material master record, you have to maintain the MRP data of the materials
that are subject to automatic planning.
I hope this may help u !

Forecast based planning -weekly schedules split -reg

Hi,
our requirement is we use forecast based planning where in both forecast periods and historical periods are months
then when fore cast is run requirement is coming in Md04 in monthly buckets only
when we run MRP the out put schedules should come in weekly bucket taking this monthly requirement
how to get that
as we understand weekly demand can be cumulated to get schedules on monthly but monthly demand can not be split in to weekly schedules as output
any thoughts
regards,
Madhu

Hi,
There's a customization transaction where you can define splitting of forecast requirements for MRP.
Go SPRO, Materials management, Consumption based planning, Forecast, Define Splitting of Forecast Requirements for MRP.
Regards,
Mario

Purchase Requisition Release strategy for MRP based Requisition

Hello Gurus
We want to set up the urchase Requisition Release strategy for MRP based Requisition ..Any can one Please share your experience about the impact down the road?
Thanks
Nick

Hi,
If you want include the MRP related PR in Release strategy.
You need to include the field CEBANESTKZ-Creation Indicator (Purchase Requisition/Schedule Lines) in one of the characteristics which you create and include the characteristics value as per the field values like AReal time, BMRP, CConverted Planned order etc.. and include the charactristic in the Release Strategy will release group & release codes.
So when ever the PR is created through MRP run then this creation indicator will update in the PR as per that release Strategy will trigger in the PR.
there is one more option you need to create the separate document type as MRP PR then create document type as characteristics and include the values of all these document types and include in Release strategy.
But it will not pop up for direct PR from MRP run only trigger when planned order is converted to PR manually there you need to select this MRP document type then release strategy will trigger.
I think first one is best suited.
rgds
Chidanand

What setup is require to run a consumption-based planning

Dear all,
I know there is a two way to run Consumption-Based Planning in standard SAP:
1 - Forecast-based Planning, and
2 - Re-order point Planning.
My question is what is the configuration setup and material master value maintenance require for the above two procedures?
Thanks
Tuffy

In Material Master
MRP 1 view choose the
MRP type
VB - Manual reorder point or
VM - automatic reorder point
Reorder point
Regards

Forecast Based Planning

Hi Gurus,
In which type of material forecast based planning (VV) is used in business process?
Forecast requirement are obtained by forecast run of these material.
Further you get the planned orders only when you run MRP on plant level or on that material. Planned orders not generated on its parent material?
Pl through light on this.
Srini

hi
forecast based planning is a type of consumption based planning . if u know the historical consumption of ur materials then u can plan with mrp type VV , u need to maintain the consumption data in forecast view of material master. Run ur forecast in MP38 or MPBT and then run mrp based on ur for req,.
MRP run will not consider PIR or sales order .
Reward if useful
Amit

MRP based Detailed scheduling

HI All,
I was setting up MRP based Detailed scheduling
FIrst I had activated MRP based detailed scheduling in ERP
then I CIF materials, resources, planned orders & purchase req.
I had verified materials & resources in APO syatem.
Then I could see the orders CIFed to APO in product view.
then I was trying to view the orders in DS board and realise that there is no resource is linked to the orders and cannot view the orders in DS board and not able to do scheduling.
so what should be the solution? Can anybody help me out?

Binil,
From your brief description, I belive you have overlooked CIFing over some Master data, either PDS or PPM.
You must create a Production Version in R/3 first. This contains the relationship between material and resource (which is contained in the routing).
For an example of how to set up PP and DS, there re some nice configuration guides in SAP SCM best practices. You will need
Connectivity
http://help.sap.com/bp_scmv250/BBLibrary/HTML/B02_EN_DE.htm
Replication
http://help.sap.com/bp_scmv250/BBLibrary/HTML/B05_EN_DE.htm
Production Planning
http://help.sap.com/bp_scmv250/BBLibrary/HTML/S16_EN_DE.htm
Detailed Scheduling
http://help.sap.com/bp_scmv250/BBLibrary/HTML/S18_EN_DE.htm
Best Regards,
DB49

To start consumption based planning

Hello experts,
Can you please explain the step by step process for starting the consumption based planing.
What configuration will be required (like activating MRP for respective plant) & what master data needs to be maintained in the system.
What Tcode will used to run individual materials (BOM is not there) & what t code will used to run for materials of entire plant for which MRP views are maintained.
Thanks in advance.
Abhishek

Hi,
In Consumption based planning when the stock falls below reorder point, system will create Procurement proposal automatically when MRP run.
Maintain MRP type VB - manual reorder point planning & Reorder point for each consumption based material in material master and all the MRP views to be maintain.
Maintain MRP parameter for Plant, for this use tcode OPPQ.
Run MRP for single material by tcode MD03, for all materials in the plant use tcode MD02. After MRP run, the materials which are having stock below reorder point, system will create P.R.
Regards,
Dharma

Consumption based planning in implementation ??

hi
Can some body explain me about the configuration setting in consumption based planning for manufacturing company ??
FOr manufacturing industry, they have production , and plant maintaienance, and depot plant.
For above business , what setting we have to in Consumplanning and MRP???
Thanks

Dear
Configurations for CBP as explained before.
a) Plant Parameters - t.Code : OMI8, when you execute this t.Code you will get several tabs like for ex.Number ranges, MRP Controllers etc... you need to maintain those are relevant
MRP Controllers, Number ranges, Available stock most of these tabs are mandatory configurations.
MRP Controllers - Defined and assigned to the plants, MRP Controllers are the planners who are responsible when it comes to the materials.
Number ranges : Planned orders, Purchase requesitions
Available Stock : whether stocks in transit, Blocked stock, Restricted stock are to be considered or not.
Planning Horizon - 100 days.. during MRP run those materials for which planning file entry is created and within the next 100days will be calculated for MRP.
b) MRP Group is not a mandatory config.
In case you need have configured new document type this can be entered in the "External Procurement per MRP Group" tab and this MRP group can be assigned to the material mster, based on this assignment the document type is picked up.
Each tab has its own significance, Please go through the configuration notes in SPRO you will get a better idea. let me know if you have futher clarifications.
Jade
Edited by: Jade on Mar 27, 2010 3:05 PM

Consumption-based Planning Question

Dears,
I am working on a presentation for a client in order to help them to decide which SAP Planning Tool should be implemented.
Since it is not a production company and it can be considered closer to a wholesale or retail one my question are related to CBP and SCM:
-Is necessary to customize and run the Consumption-based Planning tool in ERP before implementing a SCM tool (either APO or F&R)? Are they independent? Could it be advisable?
-I read in several website that is not possible in MRP to generate Stock Transfer Orders between Storage Location within the same plant. Has CBP the same constraint?
Thank you very much for your help.
L.C.

L.C.,
-Is necessary to customize and run the Consumption-based Planning tool in ERP before implementing a SCM tool (either APO or F&R)?
Not exactly. You will have to do some customization in ERP regardless of whether you additionally implement SCM planning, because all of the execution is done in the OLTP (ERP).
Are they independent?
If you mean are ERP and SCM independent, the answer is yes, they are independent. You can run SCM without ERP, and you can run ERP without SCM.
Could it be advisable?
Good question. Depends on your point of view. Establishing a new implementation of CBP is a substantial project. Adding on an implementation of SCM means additional complexity. The payoff is more features. The client has to choose.
-I read in several website that is not possible in MRP to generate Stock Transfer Orders between Storage Location within the same plant.
Neither MRP nor CBP planning can create stock transport orders, they create stock transport requisitions. CBP does not have any more or less restrictions than MRP as far as the creation of stock transport orders or stock transport requisitions are concerned. STR/STOs between storage locations became possible starting, I believe, in ECC 5.0. R/3 4.7 did not support this feature.
Sounds like you are going to need a bit of help with your presentations. The following site contains quite a few high level presentations about SCM planning you might want to incorporate into your presentation:
http://service.sap.com/~form/sapnet?_SHORTKEY=01100035870000187811&
Best Regards & Good Luck!
DB49

MRP based planning

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