LTP, DRP, MPS/MRP questions

[Former Member]

Hi Guys –

I work on APO and I am not very familiar with R/3 functionality. For one of our businesses, we are in the early stages of doing some analysis which compares APO SNP and R/3 LTP+MPS/MRP.

I would really appreciate it if you can help me with a few questions.

Once Demand management comes up with a forecast at the DC level, assuming I have a bunch of DCs, how is the forecast at the DCs propagated to the manufacturing locations? Is it by running DRP?

Can you run MRP or MPS on the whole supply chain network (DCs and manufacturing) plants at once and can it create Preqs at Dcs? Or can this be done ONLY through DRP? If MRP and MPS is strictly for manufacturing locations, then what does multi-site MRP mean? Does it mean running MRP at multiple manufacturing locations?

Is DRP the only planning run which can be run on the supply chain network? Or is there any other functionality within LTP which basically can be run over the whole network to propagate the requirements by creating purchase requisitions at the DCs and planned orders at the manufacturing locations?

Thanks

Varun

[Former Member · Accepted solution]

Deear,

LTP is used for plnning the production for comming year and budget cost for comming year. i.e. std cost restimation is calualted.

MRP/MPS are used to planning material/plant/multi plant level.

After demand is put in DC's then if the special procurement key is maintained in DC's so that when run MRP in DC's the requirement will be passed to production plant in the form of sto planned order.

Now we can run MRP/MPS sequencially in MD01- using scope of planning in which you can set the parameter such that which DC's MRP is run first, then which Manu plant MRP is run....

In DRP, after running MRP you can run DRP to see that that push pull scenario is run so that load balance is done in such a way that DC's requirement can be met by another DC or a manu plant. If stock is not avaialbe in one manu plant it will go to other, if not available then systen will create a planned order in one of the manu plant.

In APO we can optimise the whole cycle of push pull so that amany other constraint like cost also takne into account.

pl come back if required.