MRP, MTS, MPS and MTO in DP

[Former Member]

Hai,

Where do we use MRP, MTS, MPS and MTO in DP? Can somebody refer me to any documentation?

Thank you.

[somnath_manna · Accepted solution]

Visu,

Not sure why you are trying to find out Mxx concepts in APO-DP.

I shall try answering one at a time.

MRP - Not relevant for Demand Planning which basically is about generating demand using statistical forecasts and capturing market information.

MTS - You do forecasting for MTS scenario. This is the basic presmise of APO-DP

MPS - Not relevant for Demand Planning as in DP you do not consider the Supply plan. However you may argue that MPS is part of S&OP, but more than APO-DP APO-SNP is relevant in S&OP process.

MTO - In a true MTO scenario the customer orders will carry the demand and there may or maynot be a forecast. So the importance ofAPO-DP is less unless you want to generate the statistical forecast for giving visibility to the supply side.

Please note APO-SNP will have more to do with the concepts mentioned by you that APO-DP.

Thanks,

Somnath

[Former Member · Accepted solution]

just a little in addition to what somnath said

you can use the PIR from APO DP as an input in R3 to get a MRP based plan - again that become something like SNP

MTO and MTS is virtually not distinguishable in DP(unless you demarkate them by a characteristic) but in SNP it makes sense by using the requirements strategy in the product master

[Former Member · Accepted solution]

Hai Somnath,

Thanks Somnath and Harish. I know that there is no link between DP and MRP, MTO, MPS in a DP requirement(job). Just wondering what they have to do with DP. Character Based Forecasting (CBF) deals with variant configuration or nothing but MTO scenario right? Also DP-BOM works with dependent requirements generated from BOM. Can I correlate between the CBF, DP-BOM planning with MTO or MRP?

Thank you.

[somnath_manna · Accepted solution]

Hi Visu,

I never imagined your question came related to a DP job requirement. While technically these are not relevant for DP, but as a DP consultant you need to be aware of the concepts which are definitely more relevant on the supply side (SNP, PPDS).

"Character Based Forecasting (CBF) deals with variant configuration or nothing but MTO scenario right?" - you can argue that CBF is a functionality for MTO scenario especially when dealing with large variety of similar products.

"Also DP-BOM works with dependent requirements generated from BOM." - DP-BOM or Forecasting with BOM is a special functionality in DP to manage demand for a product which has both independent as well as dependent requirements. Please note it is not for generating dependent requirements only. Classic example - a speaker set that can be sold separately or as part of a packaged audio system. But then this is NOT MRP because we are talking about generating the demand only.

MRP is to generate net requirements for "components" after exploding the BOM for "finished item" and netting against stock to create relevant receipt elements (Purchase Req or Planned Orders).

Somnath