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MRP area

Hi All,

I have one query, my customer is automobile dealer, now there requirement is like- suppose they have total of 7 plants, out of 7 for 4 they do MRP run,

now all products are extended in 4 plants ,so when MRP run for one plant should be done, system should consider the stock of other plants too and the requirement of that plant too.

since I am new to PP, so I am just guessing that activating MRP area at plant level can solve my issue,but I need to conform it.

I have searched for MRP area and its impact, but could not reach to final decision.

Can anybody help me in solving this.

Thanks in advance

Vivek Varun

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2 Answers

  • Posted on Dec 27, 2013 at 06:00 AM

    Hi Vivek,

    MRP area can be defined in three ways. Plant level, Vendor level and storage location level. By default MRP area is in plant level if MRP you run at any plant as well the material is relevant for MRP run.

    You have to run it with Scope of planning. You can include multiple plant in scope of planning(in customizing-T code:OM0E) and run through MD01. MRP will be run one by one plant as per the sequence maintained in scope of planning.

    This will solve your problem.

    Regards,

    Krishnendu.

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    • Former Member vivek varun

      Vivek,

      As I said earlier, the technique i described works well only when demand is at the end of the supply chain. You can extend the supply chain to as many plants as you want, but at some point you have to ask if you want to keep moving stocks from plant to plant.

      I will take a step back, and just say categorically that if you want a single planning run to

      1. consider all supply and all demand in all plants, and

      2. transparently and without user interaction,

      3. determine which plants have shortages and which plants have surpluses, and

      4. automatically plan to move stock back and forth to alleviate any shortages in any plants,

      then I will say that unenhanced SAP ECC planning will not fill that requirement.

      Many companies use workarounds to solve similar problems in ECC. The solution I have been describing is a common workaround, but it will not move stock bidirectionally, so each time you add a plant (from two plants to three to four to n plants) in a single chain, the utility of the workaround is reduced since transportation costs begin to increase.

      It would be possible to use a 'procurement hub/distribution center' methodology to emulate some of the features of bidirectional stock movements during planning. In your case, you could, say, make 1100 and 1300 to act as distribution centers (the ends of the supply chains). They would both obtain stock during local DC shortages from 1200, using SPTs similar to your current Z4. In effect, you make all of your plants (dealerships) except one act as Distribution centers, and one dealership (plant) be the principal supplying plant (hub), where new cars are always procured. Although this method is transparent, transportation costs will probably increase, and there is no facility to transparently supply a shortage in one of the distribution centers from another one of the distribution centers.

      In any case, this posting has already become much too long, and I believe that the original question is settled: MRP areas will not solve your original business problem, nor will any other standard functionality in SAP ECC planning. There are workarounds that will partially solve some of the business requirements, and I have outlined a couple of them.

      I now conclude my contributions to this thread. If your client cannot live with the workarounds I have suggested, perhaps he should consider using APO.

      Best Regards & good luck,

      DB49

  • Posted on Jan 10, 2014 at 10:40 AM


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