SAP PP MRP Process flow

MRP Process flow

• With MRP, inventory can be optimized via planning receipts according to the needs so that surplus inventory could be avoided.
• Sales and distribution give concrete customer requirements from the market.
• In Demand Management, sales are planned in advance via a sales forecast. The sales forecast is entered in demand management in the form of Planned Independent Requirement (PIR), i.e., the requirement for the finished product.
• In order to cover these requirements, MRP does net requirement calculation and plans procurement quantities and dates on which the material needs to be procured or produced.
• If a material is produced in-house, the system explodes the BOM and calculates the dependent requirements, that is, the quantity of components required to produce the finished product.
• If a material shortage exists, planned orders are created at every BOM level to fulfill the requirements and purchase requisitions are generated for externally procured raw materials. You can also create planned orders for externally procured materials which can be converted to purchase requisition.
• MRP does lead time scheduling and calculates planned order dates based on routing times. Basically, it does backward scheduling starting from requirement date minus (GR processing times, in-house production time, float time before production ) and calculates the duration of planned orders.
• Production orders or Purchase orders are created after conversion of planned orders and purchase requisition respectively.
• MRP type "PD" in material master MRP 1 view is essential to run the MRP for the materials. If, you don't want to run MRP on the material then MRP type "ND" can be maintained in the material master.

MRP Planning Parameters

MRP parameters are required for MRP run in terms of considering the requirements (PIR) in planning horizon, scheduling parameters and about the usage of BOM and routing data.

Processing Key

• Net change (NETCH): In this run, the system considers those materials in the planning run from their last MRP run which have undergone some changes pertaining to receipts and issues or any stock changes.
• Net Change in Planning Horizon (NETPL): In this run, the system considers those materials in the planning run from their last MRP run which have undergone some changes pertaining to receipts and issues or any stock changes. It considers the requirements in a pre-defined planning horizon, unlike NETCH key which considers the total futuristic requirements.
• Regenerative Planning (NEUPL): It plans all the materials for the MRP Run irrespective of the changes they undergo. This plan is not so widely used. It takes a long time to obtain the final result.

Planning Mode

• Adapt planning data: It only processes the changed data.
• Re explodes BOM and Routing: Read BOM and routing data again for the existing orders.
• Delete and recreate planning data: It completely deletes the planning data (all receipts) and creates again.

Scheduling

• Basic Scheduling: MRP calculates only basic dates for the orders and in house production time for the material master is used.
• Lead Time Scheduling: The production dates are determined by the lead time scheduling for planned orders. The routings are read to schedule and calculate the capacity requirements on work centers.

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