MPS or MRP

[Former Member]

What is teh benefits of configuring MPS? when we alraedy have a power tool or MRP. kindly explain in detail as it become a beta blocker for my thinking...........

[Former Member · Accepted solution]

Hi Syed,

I am sure there is a lot of material out there to read on this topic, but to keep it simple n basic. I can equate it to the focus which you would accord to certain materials. Just imagine if there are thousands of materials & when MRP runs, each child demand is driven by the top parent demand. When such is the case, it would be preferable to first have an MRP run only for the top parents to see if the planning scenario meets actual business scenario.

So if the planning is limited in scope to only the top level, it becomes easier to trace any excess stock being planned or any under planning as well, once this is traced & fixed, we can then proceed with mass planning across all levels.

In industry terminology think of MPS as a prototype & MRP as the regular production. So i am sure you can now make a clear distinction of the same.

Hope i was able to provide you with some clarity.

Regards,

Vivek

[Former Member · Accepted solution]

Dear Vivek,

Thanx alot for taking ur time out for the reply,

I want to discuss it in detail. in case of more than 2000 materials i would agree that it will be very nice to have MPS than MRP, but in case of companies which has materials around say 2000. wht would be the ideal scenario? MRP or MPS? when dealing with fewer materials it seems to me an added artifical layer for companies such as GlaxoSmithKline i would agree that it will be a feasible solution...

Also by dealing with the parent and child materials seperately, aren't we going against the whole idea of a centralized planning? which happens to be the modern recommended approaches towards supply chain planning.. Why distribute planning at two levels when you can yield better results from centralized planning..

Hope i m not asking to much questions...........

[Former Member · Accepted solution]

You got it right, its always better go for centralized planning, couldn't agree with you more. But as you also brought out, the complexity & magnitude of materials is what drives for an MPS - MRP kind of scenario. But for firms who dont have so many parts, then its not recommended to go for MPS.

I firmly believe whether to opt for MPS or no is case-dependent. Anyway SAP offers a tool but does not compel us to use it. MRP is a robust & very powerful tool, so if the planner is smart & is well versed with LTP simulation & planning then i wouldn't see much loss in not going for MPS. Instead focus more on MRP.

As with such topics, there would be some benefits of MPS as well, so wouldn't like to say its not much use also.

You're most welcome to ask questions, i guess it is means for all of us to learn.

Regards,

Vivek

[Former Member · Accepted solution]

Dear Vivek,

thnx alot for ur opinions, i will come back to u as soon as i finish exploring MPS ... any one else want to share his ideas on MPS is more than welcome to come n share ......

[former_member184655]

Dear Syed,

MPS is used only for those materials which greatly influence the company's profits and so proper

planning is required for those materials.So for such materials MRP type will be assigned relevant to

MPS.

MPS will be carried out using MD41 and MD42.

Also refer my reply from this thread,

Regards

Mangalraj.S