Suitable MRP type for planning

[Former Member]

Hello SAP users,

I'm new to SAP and are tryinbg to determine which MRP type is most suitable - PD (MRP) or reorder point planning with ex. req - Maybe some of you have valuable input. The material is raw material, dependent requirement. For many materials, the delivery lead times are much longer than the production plan. Forecasts and plan are unreliable, end products come in many variants which makes it harder to make good forecasts, specially for low demand products.

So, I was wondering which planning method is more suitable, PD or reorder point? I've read somewhere that it is possible to configure SAP so that reorder point with external req. (that is, incl. sales and planned orders in net requirements calculation) is possible.

Anybody that has an intresting opinion?

Regards,

[Former Member]

PD - Material Requirement Planning

Material requirements planning is based on current and future requirements. The planned requirement quantities trigger requirements calculation. In MRP, the requirement elements include sales orders, planned independent requirements, material reservations, as well as the dependent requirements that BOM explosions create.

Net requirements calculation is triggered by independent or dependent requirements.

VB - Manual Reorder Point is a Consumption based planning.

Consumption-based planning procedures are only based on previous material consumption. External requirements such

as sales orders, planned independent requirements, and reservations, are generally not relevant to planning. But you can change the MRP type to include such requirements.

Net requirements calculation is either triggered by the available stock level falling below the reorder point or by forecast requirements calculated from historical data.

As your forecast and the delivery lead times are unreliable always, it is always good to go with VB. You can trigger the planning run when the stock falls below a certain level.