MRP settings for 3 month lot size

[former_member1105947]

Hello, we have agreed to a 90 day stocking level with our customer of 300,000 units. How can I configure MRP in the material master to reorder at 100,000 units and replenish to a maximum stock level of 300,000? Currently, I am using an annualized forecast and PD strategy but it is creating planned orders for each month. Our intention is to produce the material approximately once every 3 months.

Cheers,

Justin

[Caetano · Accepted solution]

Hi Justin

The customizing transaction to create lot sizing procedures is OMI4.

You can create a new lot sizing procedure as a copy of MB, changing the number of periods to 3.

If you want to reorder at 100000 units, you should use a reorder point MRP type, such as VB.

BR
Caetano

[former_member1105947 · Accepted solution]

Many thanks Caetano!

Unfortunately I do not have direct access to OMI4 and getting anything custom is difficult to obtain at this time. I am wary to use the reorder point strategy as I want to use a forecast to drive planned orders that will create demand for the raw materials (in this scenario the lead time of raw materials is longer than the lead time of the finished good).

My thought is to use a forecast with cumulative demand entered only every 3rd month but this seems like a work around rather than using the system as intended.

[Former Member · Accepted solution]

hai justin.

    how to calculate Re-order point and safty stock in the given requirement

Regards,

leo

[jduppalapati · Accepted solution]

HI albun,

Re order point can be calculated based on maximum stock level or minimum stock level. with manual reorder point or automatic reorder point.

[Former Member · Accepted solution]

hai jayadeep,

        That I know but i need to know like how you will find (OR) calculate the RE-order Point and Safety stock.

         Take a example

          Re-point will calculate by adding PR to PO creation time + Vendor delivery time + Safety stock

          My question is ho you will get the data in sap to create Re-order point, I know that in material master MRP 1 We have option to enter RE-order point (for Manual reorder point)

         But that quanty how you will calculate

[prasad_joshi8 · Accepted solution]

Hi Justin,

As you want to configure MRP in material master to reorder point and maximum stock level and additionally expecting forecast to drive planned orders to create demand for ROH material but in the Reorder point Strategy forecast/ planned independent requirement will not consider in net requirement calculation.

Kindly check below link for more details.

Net Requirements Calculation for Reorder Point Planning - Consumption-Based Planning (MM-CBP) - SAP ...

Could you please let us know the business scenario like MTO /MTS ? For Cumulative planned order for 3 months , lot size config as suggest by Mr. Caetano is the best option also just refer below link. I hope it will work for you.

I will revert back to you if I have found any other solution.

Requirements generated by future demand are cum... | SCN

Best Regards,

Prasad J.

[Caetano · Accepted solution]

Hi Justin

The standard system allows you to achieve the desired results with a very simple customizing change. In my opinion, it would be easier to request the access to customizing than to map this scenario with a very complex workaround.

BR
Caetano

[Former Member]

Hi Justin,

please use MRP type as VB-reorder point planning and

HB-replenish up to maximum stock level.

Here 2 calculation will act for determining requirement

formula1 -based on Maximum stock level (in your case 300,000)

Maximum stock level-plant stock-existing fixed receipts=lot size

300,000-100,000-0=200,000 (quantity as per formula 1)

formula2-based on reorder point

Reorder point + total requirement-plant stock-existing fixed receipts=lot size

100,000+300,000-100,000-0=300,000 (quantity as per formula 2)

Now you can choose if you only want Maximum stock level to be considered then do not consider external requirements for MRP in this case only formula 1 will be used which will give you quantity not more than maximum stock level.

Also if stock falls below reorder point then system will create requirement for shortfall quantity.

formula 2 will be applicable if external requirements are taken into consideration for MRP.

in this system creates proposal by comparing both the formulas and quantity which is greater will be used for order proposal.

for your case do not consider external requirements into consideration so always quantity as per formula 1 will be calculated for order proposal..

[Former Member]

see below example

if plant stock is 50,000

reorder point-100,000

Maximum stock level-300,000

Now planning file entry will be created as plant stock is less than reorder point.

when MRP run will be done system will create order proposal

Maximum stock level-plant stock-existing fixed receipts=lot size

300,000 minus 50,000 minus 0=250,000 units