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MRP

Former Member
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Dear GURU's

Can anybody able to describe material planning based on sales order ? Like SD department gets an order of 3000nos. of a particular material. How he will check availability ? In case of shortage , how he will run MRP (step by step) ? Thanx in advance

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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hi

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

For PP, you require following Master Data

1. Material master (MM01)

2. BOM (CS01)

3. Routing (CA01)

4. Work Center (CR01)

5. CK11N / CK40N - Cost Estimate

Production Cycle: -

1. PIR (Planned Independent Reqmt. - MD61)

2. MD02 - MRP Run

3. MD04 - Stock Requirement List

4. CO40 - Convert Planned Orders to Production Order OR CO01 - Create Production Order

5. Here in Production Order - Schedule Order, Release order

6. MIGO / MB1A - Goods Issue against Order (Mvmt Type 261)

7. CO11N - Production Operation confirmation

8. MIGO / MB31 - GR against Prd order

9. CO02 - Technical completion of order

Hope it clears.

rahul.

Answers (4)

Answers (4)

csaba_szommer
Active Contributor
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Hi,

Can anybody able to describe material planning based on sales order ?

The process may be different based on which planning startegy you use. You can use e.g. MTO (e.g. strategy:20) or MTS (e.g. startegy 10, 11). Planning startegy 40 is also MTS but I would say a little bit mix of MTO and MTS.

In case of MTS you won't use SO for planning because you produce the goods for stock and you fulfill the requirement of customers from stock. In this case you can use PIRs (planned independent requirements for planning).

In MTO scenario the SO itself is the requirement and during the planning process MRP will calculate with this SO in the SO special segment (SAP will use SO special stock).

As I mentioned, strategy 40 is a mix of them, both SOs and PIRs are considered during MRP run. But this strategy is much closer to MTS since special stock segment is not in use.

http://help.sap.com/erp2005_ehp_04/helpdata/EN/60/9ea1536fbd11d191820000e8a5f6e6/frameset.htm

The basic process: 1. Input requirement (PIR or SO) 2. Run MRP (you will get procurement proposals if necessary) 3. Procure the goods (external / internal) 4. Ship out the goods.

How he will check availability ?

Input the requirement and run MRP (e.g. MD01). After that check the result in MD04. You can use CO09 for availability check.

In case of shortage , how he will run MRP (step by step) ?

MRP run if you make it run, it doesn't matter whether your stock level is sufficient or not. If you have enough stock, no procurement proposal will generated. If your stock level is not high enough, MRP will generate procurement proposal (e.g. PurReq, PldOrd).

If the problem is with timing, you will get exception messages.

The planning process is very complex, there are many strategies and processes, so what I told you is just some basics things.

Regards,

Csaba

former_member581212
Active Contributor
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hi,

In addition to above,

check the link for Sales order planning at multiple and single level...

[SALES ORDER PLANNING|http://help.sap.com/saphelp_47x200/HELPDATA/EN/f4/7d3f9344af11d182b40000e829fbfe/frameset.htm]

Check till end...

Regards

Priyanka.P

Former Member
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Hi,

In you case the sales department can check the availability of stock using simple MMBE transaction. In this case the Sales department need not have to check for availability in the system but can run the MRP for the material.

During MRP run the system will only create Planned independent requirements i.e Planned order as per the formula

Planned independent requirement = Stock + confirmed orders (planned order, production order, purchase requisitions, purchase orders etc.,)

Regards

Srinivas.P

Former Member
0 Kudos

Hi

Check this link for Make to Order / Make to Stock

http://help.sap.com/saphelp_ides/helpdata/en/51/9532c0a1fa11d189ba0000e829fbbd/frameset.htm

Regards,

Raman