Uploading Production Requirements For Finished Goods From External System To Run MRP For Components in SAP.

[Former Member]

Hello Production Planning experts,

I'm looking to solve the current business problem:

The company bought a third party software (JD Edwards) to calculate production requirements instead of using SAP's standard Production Planning or a tool like SAP's APO. They run a batch job to query Sales Orders, Deliveries, available stock, stock in transit, etc. from sap and feed/upload it to the third party software so it can calculate the Finished Goods Production Requirements for them. They love the third party software, so replacing it is not an option. Since the third party software is already taking into account Sales Orders, Deliveries, available stock, stock in transit, etc. from SAP, it just outputs a "Finished Goods Production Schedule" by week.

My questions are:

1) What's the best way to upload something like that in SAP in the form of Planned Orders or something of that nature?

After i get that schedule in SAP:

2) Is there any way to calculate components' requirements for that "Finished Goods Production Schedule" alone? The company would like to IGNORE existing stock AND expected-goods-issues in the future (sales orders, deliveries, etc) for Finished Goods ONLY. The components calculations would work the standard MRP way, taking into account existing stock and AND expected-goods-issues in the future (sales orders, deliveries, etc)

I started looking into Master Production Schedule (MPS), but I don't know if that's the right approach since I'm not very familiar with it.

Thanks in Advance! I will gladly reward points for helpful/correct answers.

[Caetano · Accepted solution]

Hello Oscar

I suggest you to upload your production plan in the for of "Planned Independent Requirements" using BAPI BAPI_REQUIREMENTS_CREATE. Later, MRP will create planned orders to cover the PIRs.

If you don't want to consider the existing stock of the finished product, you should use the planning strategy 11 to create your PIRs. Take a look on the following link for more details about this planning strategy:

Gross Requirements Planning (11) - Demand Management (PP-MP-DEM) - SAP Library

Here you will find the following information:

The make-to-stock strategy gross requirements planning is particularly useful in mass production environments; it is often combined with repetitive manufacturing. This strategy is particularly useful if you need to produce, regardless of whether you have stock or not. For instance, steel or cement producers might want to use this strategy because they cannot shut down production; a blast furnace or a cement factory must continue to produce, even if this means having to produce to stock.
This strategy is also frequently used if there is a Material Requirements Planning system in a legacy system that needs to be linked to an SAP system which serves as a production execution system. The legacy system calculates a specific production plan, which has to be executed, regardless of the stock situation in the SAP system

It looks like this planning strategy is exactly what you are looking for.

BR

Caetano

[Former Member]

Caetano & Mariano, seems like you both have given me each 1/3 of the answer.

The part that's missing is: If I follow strategy 11 - Gross Requirements Planning, it will not take into account existing finished goods stock, but what about "customer requirements? If I understand correctly, strategy 11 looks at PIRs (which we would upload), but it is not clear to me whether or not it ignores customer requirements (sales orders, etc.) I hope it DOES IGNORE customer requirements and it only focuses on PIRs, because that's what I need it to do.

If you know the answer to that last part then I can close this thread.

[Caetano]

Hello Oscar

Did you read the documentation on the link provided on my previous reply??????????

You will find the following sentence on the mentioned link from SAP help:

Individual sales orders, which can be somewhat irregular, do not affect production.

BR

Caetano

[marianoc]

Hi,

If you load the planned orders for the finished products you don't need to run the MRP or load Planned Independent Requirements for your Finished Products.

You will only plan your components (run the MRP), based on dependent requirements generated by

the planned orders.

Kind Regards,

Mariano

[Former Member]

Silly me, I just read up to the table in the link. I believe the entire thread is a great thread for other SCN users to use. I always try to spend a few minutes going over existing posts to avoid posting something that has already been answered.

Thanks Caetano!

[Former Member]

Final question: I've never ran MRP for just the components. How do I "plan your components (run the MRP), based on dependent requirements generated by the planned orders? It's not MD02, correct? Because MD02 is what I normally use.

I just initiated the thread below to answer this final question. Since the one stated previously is already answered, I will reward you on the thread below for the answer.

For the sake of not confusing anyone else reading this, this is the link where you can answer this final question:

Thanks for all your help Mariano, I really appreciate it.

-Mr.Bello

[marianoc]

Hi Oscar,

Yes. You can run the MRP thru MD02 or MD01 for all the components by plant level. If you want to set a job use MDBT.

Kind Regards,

Mariano

[marianoc]

Hi Oscar,

For your firlst question, you can upload planned order from a file by creating a custom program.

Take a look of this document (it includes the program):

For your second question, note that once you load the planned orders (production requirements) you can explode the MRP in SAP. You just need to have a BOM, a Routining or Recipe and a Production Version for each finished product. As soon as the planned orders is loaded, the dependent requirements are generated and the MRP by executing the MRP you can generate the replenishment plan for your components.

Kind Regards,

Mariano