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Planning tolerances during MRP

Former Member
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Situation is I create a sales order for 100 on a finished material. Currently I have a 0 stock. MRP creates a planned order for 500 which I convert to production order. On the first operation step of the production order confirmation I final confirm 450. When I run MRP again it creates a planned order for 500-450 = 50. I want MRP to not create a planned order if my production quantity is within a tolerance level. So in this case if 450 is within tolerance I should not be creating a planned order for the potential shortage quantity of 50.

Is there a way I can do this in SAP?

thanks a lot

Accepted Solutions (1)

Accepted Solutions (1)

madlercm
Active Contributor
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Hi John,

It is not clear to me why MRP creates a planned order of 500 when your sales order is 100!

So, could you please shed some light here?

Mario

Former Member
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It was a typo...the sale order is for 500 units.

Former Member
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John,

So, let me see if I understand.

You have a sales order for 500

MRP generates a planned order for 500, which you convert to a production order.

Manufacturing executes the production order, and find that they are only able to complete 450, and close the production order at 450. 450 widgets are now in stock, against a sales order of 500.

You are saying that you don't want to build the balance of the requirement of the sales order? E.g. the customer wants 500, you only wish to sell him the 450 that you were able to build? And, you do not intend to build the balance?

This is not something that standard MRP can accomplish. Where companies do not intend to supply the entire requirements of the sales order, they typically modify the sales order accordingly; either reduce the requirement or close the sales order short.

Rgds,

DB49

Answers (3)

Answers (3)

Former Member
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John,

The scenario you are requesting is standard functionality if you are using a demand planning type of MRP, such as PD. It doesn't work this way for the reasons you have requested, though, and it doesn't offer a settable tolerance.

It sounds like you are currently using a consumption type of planning, but you have not specified this in your 'current' scenario.

Assuming you change to a 'demand' type of MRP, MRP always tries to produce a proposal that will meet the requirement. It does not matter what production orders have or have not been completed in the past. When all requirements have been met, MRP will not produce any more proposals.

So, in the case of 100 requirement (sales order) and 450 in stock, 0 safety stock, no other requirements, all production orders received complete or closed short, MRP will normally give you no new proposal.

You seem satisfied that for the 'small' requirement of 100, that MRP would give you a proposal of 500 (in many companies, this would be considered as 'excess'). Anyway, if this is your requirement, and you were using PD, this could be achieved by setting your minimum order quantity to 500. If you later executed this order, and closed the production order short at 450, MRP would see that you have reached/exceeded your requirements goal, and would propose no further planned orders.

Rgds,

DB49

Former Member
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It's been a while, but from memory you can link you lot size to your forecast demand (if you have that implemented) so you have the option of still raising the additional 50 units in production order if your expected demand over the planning period is 500 (or more).

Hope this helps.

former_member184701
Active Contributor
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goto material master data and check 'Lot size data' in MRP1 view

i suppose you have 500 in 'minimum lot size' filed

set it blank and re-run MRP (play in QA system)

good luck