Dear Partha,
Net Requirements Calculation for MRP
Use
In MRP, requirement quantities are maintained in the system as planned independent requirements, customer requirements, dependent requirements, material reservations as well as forecast requirements. The system checks every exact requirement and every forecast requirement to determine whether they are covered by available warehouse stock and/or receipts (purchase orders, firmed procurement proposals, production orders, and so on).
Prerequisites
You have set an MRP type in the MRP Type field in the material master (View MRP 1) to MRP for the material.
Available Stock = (Plant Stock) - (Safety Stock) + Receipts(Purchase Orders,firmed Procurement Proposals,Production orders) -
Requirements quantity (PIR's,Customer requirements,Material reservations).
Net Requirements Calculation for Reorder Point Planning
Use
In reorder point planning, the net requirements calculation is only carried out once the stock level has fallen below the reorder level. Issue elements, such as, customer requirements, planned independent requirements, or reservations are only displayed and are not included in the net requirements calculation.
Prerequisites
You have set an MRP type for the material in the MRP Type field in the material master (View MRP 1) to Reorder point planning, for example VB or VM.
Features
Available warehouse stock is calculated as follows:
Available stock = Plant stock + Open Order Quantity(PR,Firmed PR,Pur.Order).
If available warehouse stock falls short of the reorder level then the shortage quantity is the difference between these two.
Net Requirements Calculation for Forecast-Based Planning
Use
The basis of forecast-based planning is the forecast of the total requirements. The system only considers the forecast requirement quantities as issues. Other issue elements, such as, customer requirements, planned independent requirements, or reservations are only displayed and are not included in the net requirements calculation. The system checks every forecast requirement to determine whether it is covered by available warehouse stock and/or receipts (purchase orders, firmed procurement proposals).
Prerequisites
You have set an MRP type for the material in the MRP Type field in the material master (View MRP 1) to forecast-based planning.
Features
Available stock is calculated as follows:
available Stock = Plant stock - safety stock + receipts + - Requirements quantity.
Regards
Mangalraj.S
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