Which MRP Type is better?

[Former Member]

Client is Distribution Center and he gets all the products from Internal company vendor .

Which MRP type?

manual re order point

Auto matic reorder point

forecasting based planning.

thanks

sweth

[fabio_almeida · Accepted solution]

Hi Sweth,

MRP Type corresponds to the way that you wish to run the MRP functionalitty to the material/plant. It works as a control method to the material/plant.

For example:

ND - No MRP. For this material MRO will not run. It is used to obsolete material.

PD - MRP based on the requiirement. It works as 'when requested'. MRP will only suggest the exact quantity from the requirement (reservation) to be bought/supplied. For this MRP Type, you should use Lot size 'EX -Lot-for-lot order quantity'.

VB - Manual reorder Point. You have to define a reorder point and safety stock manually into the MRP1 view. Then, everytime that this reorder point is violated, the MRP is run, and suggest a quantity to be bought/supplied. for this MRP type, you could use Lot size 'DY - Dynamic lot size creation'. This way, quantity to be suggested by system will be calculated considering the economic quantity based on the previous consumption and forecasting.

VM - Automatic reorder point plng. It works as 'VB', however the reorder point is re-calculated by system automatically.

W - Forecast-based planning. For this MRP type, you have firstly to run a forecasting via Forecasting view but it just make sense if you have a consumption history.

Answering your question:

Which MRP Type is better?

-> for obsolete materials: ND

-> low consumption and high material price: PD

-> regular consumption and price not too high: VB

-> high cosumption and low price: VB

-> regular consumption in specific periods: W

I hope it helps you.

Best Regards,

Fábio Almeida

MM Consultant

[Former Member · Accepted solution]

thanks for all replies

sweth

Edited by: Sweth123 on Mar 29, 2011 9:12 PM

[Former Member · Accepted solution]

Thanks for the reply ,

My Client is distribution company , ( Mechanical Spare parts , tooling there is no shelf life associated with it . )

requirement is that purchasing should be able to make decision based on 3 factors

1) Schedule agreements from major Customers.

2) Forecast based on historical consumption

3) reguirements from other customers where demand is unknown.

parts are highly consumption items/fast moving items.

Can we have a MRP Type which takes all the above factors into consideration?

Thanks

Sweth

[Former Member]

Hi Guys:

the requirement to have dedicated stock for 3 to 4 major customers.

1) That is done by Defining MRP Area by storage Locations i.e Sl1 , Sl2 ,

All the goods receipt is done through Sl1.

Sl2 is exclusively maintained for the reserve stock for the customer .

When Sales people gets an order Material Availabilty check is carried out only in Sl1 but they should have visibility of stock available in Sl2 that way they can request purchasing to release stock for customer ,

that way inventory is not allocated directly without the involvment of purchasing, Material movements between Storage location Sl2 to Sl1 is carried out.

2) Back orders Received from Customers with Certain Delivery date in future:

Can we Create Seperate MRP Run for this Sales orders since they are not taken care in Forecasting ---> based MRP Run.?

Create Sales Order add material in it. Run MRP and Sales Order specific PR will be generated.

ME5J and ME2J will give Sales Order specific PR and PO respectively

When GR will be made against these PO Sales Order specific stock will be seen in MBBS and MB52.

If required Z report can be created by copying MB52 and get the customer details from Sales Order.

3) MRP Run for Forecasting based on Past history --This will take care the demand from other customers.

any comments please

Sweth

[Former Member]

Hi

This is taken based on your requirement

Check out the link

http://www.sap-basis-abap.com/sappp01.htm

http://www.sapstudymaterials.com/2008/05/materials-planning-procedures-in-sap.html

Regards

Anand

[Former Member]

HI,

It's purely Business question,

1) As it is distribution system if it is PULL system i.e. if it is ordering material from warehouse time to time then Automatic ROP will be better

2) If it is PUSH system i.e if Warehouse is supplying material from time to time then Forecast based planning will do.

I thing it helps you Have a nice day

[madlercm]

You don't sound very much into MRP specifics, so I'd recommend that you start with the simplest one - manual reorder point planning.

[Former Member]

Hi,

All MRP Types have their own Merits and demerits so its purely a business decision on how the Client wants to go about it,

If you are clear on the Lead times and the Safety stock then you can opt for a Reorder Point Planning, but still you need to discuss with the business on the criticality of material availability and most importantly the lead time to receive materials.