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Mrp Area query

Hello Friends

Can any body give me real life example for storage location type MRP area & subcontractor MRP area

& why the seperate planning parameters are required for MRP area like MRP type ,lot size...etc

or is it mandatory to use MRP groups for MRP area.

Thanks in advance.

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2 Answers

  • Posted on Aug 01, 2012 at 12:05 PM

    Hi Ravindra,

    I never had a chance to work on scenario where need to define a MRP area but the main reason for you to implement MRP areas is if you would like to plan materials, which are required in different shop floor areas, storage locations or by subcontractors, separately from one another.

    Refer links below for more info:

    Also, if you want to plan a storage location/subcontractor seperately, other than normal MRP, then you can set your own planning parameters.

    Also, it's really not mandatory to use MRP groups for MRP area... it only facilitates different MRP parameters.

    Hope this will help.



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  • Posted on Aug 01, 2012 at 06:15 PM

    Let me give you an example from one of the real life scenarios. You have a plant 1000 and it has one main warehouse 0001 (a storage location WM or IM managed) in the same plant you have other storage locations 0002, 0003 etc, the business set up is like below, 0001 is used for all receiving from purchases (you have all the staff here who deal with receipts and make sure everything is as per the PO), so it's the storage location for external procurement and other other storage locations 0002, 0003 etc are production storage locations from where you do the goods issue to production orders. Now you have a material X which is used twice in the finished product at operations 0010 qty 4 and 0020 and qty 5 and it is issues from respective storage locations 0002 and 0003 to it's production order. The material is a re-order point material and it's re-order value is 8, the stock at main warehouse is 9, now you did the staging and issue out 4 and 5 respectively to 0002 and 0003 which leave the stock at 0001 as 0 qty. But the business process is to keep at least the re-order level at the main wareshouse. When you run MRP in regular setting without MRP areas system will not create any PR because the total plant stock = 9 qty which is higher than re-order point 8 qty. This is the reason you separate out the main warehouse for MRP calcuations and create a separate MRP area when you do that system will look at only that particular storage location 0001 in this example and triggers a PR creation.

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