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MAterial Resource Planning (MRP)

Hi,

Can you tell me what is Material Resource Planning (MRP)? How & why is it used in SAP MM?

Regards,

Krutika

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  • Best Answer
    Posted on Dec 15, 2008 at 07:13 AM

    hi,

    MRP : MAterial requirement planning...

    Prerequisites:

    1. Maintain MMR from MM01 for MRP views..

    2. maintain the source list for the mateiral req. to be planned

    3. maintain MD03 - single item single level planning

    The main function of material requirements planning is to guarantee material availability, that is, it is used to procure or produce the requirement quantities on time both for internal purposes and for sales and distribution. This process involves the monitoring of stocks and, in particular, the automatic creation of procurement proposals for purchasing and production.

    USE :

    MRP tries to maintain the balance stock in the warehouse for the constant levels...

    ADVANTAGE :

    1. As the material level is seen constantly by the system, so you don't make any documents for the req. generated in the dept...so procurements is hit automatically as soon as the reorder point is touched..

    2. No mistakes in the generated of the documents, so you avoid the entry errors...

    3. Ontime processing of the requirements..

    4. If req. the system also considers the availability check for the future req.

    5. Auto PO can also be generated if done all the necessary settings..

    For more help either revert back and use the link :

    [MRP|http://help.sap.com/erp2005_ehp_04/helpdata/EN/d0/7b528355af11d1a6280000e83235d4/frameset.htm]

    Hope it helps..

    Regards

    Priyanka.P

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 15, 2008 at 06:58 AM

    Hi,

    MRP is used to plan for production.

    When you are working with Make to Order for each order what are the materials required to excute that oreder and what is the quantity and when they required is calculated by the system based on your configurations and Bill of materials.

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 15, 2008 at 07:04 AM

    Hi,

    MRP is not material resource planning, but it is material requirement planning.

    Following are the examples -

    1) For material with MRP type PD - For these materials, when requirement is detected (while running MRP), either through sale order or project, system calculates the requirement, it's quantity & creates PR for procured materials. If source list & info record is maintained, then the source can be assigned to the PR.

    2) For materials with MRP type VB - When the stock falls below the reorder point, the system creates the PR during MRP run.

    Regards,

    Prashant

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  • Posted on Dec 15, 2008 at 07:05 AM

    hi

    it is Material Requirements Planning

    Material Requirements Planning (MRP) enables you to plan material requirements for a manufacturing or procurement process.

    MRP calculates gross requirements for the highest Bill of Materials level based on sales orders and independent demands. It calculates gross requirements at the lowest Bill of Materials levels by carrying down net parent demands through the Bill of Materials structure. The dependent levels might have their own independent demands, such as sales orders and forecasts.

    The results of the MRP run are recommendations that fulfill gross requirements by taking into consideration the existing stock levels and existing purchase and production orders. The MRP run also takes into account defined planning rules for Order Multiple, Order Interval, and Minimum Order Quantity.

    Recommendations are back scheduled by the defined lead time to arrive at the requirement dates for their own components.

    plz check following

    http://www.saptechies.com/category/production-planning/material-requirements-planning/

    http://www50.sap.com/businessmaps/1BD448892DEA413E9D270C761DEB251C.htm

    http://www.sap123.com/showthread.php?t=89

    http://www.sap123.com/showthread.php?t=57

    http://jan.ucc.nau.edu/tlj3/MRP%20and%20Material%20Purchasing%20with%20SAPSCH.doc

    regards

    kunal

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 15, 2008 at 07:01 AM

    Hi,

    Please go through this link you will get idea on MRP

    mrp-run

    rgds

    gsc

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 15, 2008 at 07:03 AM

    Hi,

    The main function of material requirements planning is to guarantee material availability, that is, it is used to procure or produce the requirement quantities on time both for internal purposes and for sales and distribution. This process involves the monitoring of stocks and, in particular, the automatic creation of procurement proposals for purchasing and production.

    In doing so, MRP tries to strike the best balance possible between

    optimizing the service level and

    minimizing costs and capital lockup.

    The MRP component (PP-MRP) assists and relieves MRP controllers in their area of responsibility. The MRP controller is responsible for all activities related to specifying the type, quantity, and time of the requirements, in addition to calculating when and for what quantity an order proposal has to be created to cover these requirements. The MRP controller needs all the information on stocks, stock reservations, and stocks on order to calculate quantities, and also needs information on lead times and procurement times to calculate dates. The MRP controller defines a suitable MRP and lot-sizing procedure for each material to determine procurement proposals.

    Regards,

    Deepak.

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 17, 2008 at 10:49 AM

    MRP run For multiple items

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  • author's profile photo Former Member
    Former Member
    Posted on Dec 18, 2008 at 07:42 AM

    thanks for all replies.........

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