Difference between MRP and MPS..

[Former Member]

Hi ALL,

I am aware that MPS planning is done for the materials which are high-valued....Main aim is to reduce costs and to increase planning stability...

Also these type of Materials can be planned using MRP...

Then why do we go for MPS Planning only...?

Thanks..

Regards,

Ameya K.

[Former Member · Accepted solution]

Hi Ameya,

Usually MPS is done before MRP. MPS is done for the Critical/Final products for which the company depends for Profit sharing or which will effect the Balance Sheet.

MPS is done while preparing the Annual Budget of the company, which can be reviewed Quarterly. While preparing the Budget, the Master plan states The quantity of the"Final Critical Finished products " to be produced based on the Capacity & Annual forecast.

MPS is done only for One-level of BOM

MPS is one of the Type of MRP, but MPS is done before MRP.

MRP's purpose is to make sure that the right material is available at the right time. It can plan even the dependent items or assemblies, based on the requirement or planning from MPS.

I hope that your doubt is cleared now. Hence reward points.

Regards,

Nayeem Ahamed

[Former Member]

Hi Ameya,

MPS

1.In the MPS run, the materials marked MRP Type as MPS (ie. M0,M1) only will be included . The planned orders are created at the MPS Material level only.

2.The BOM is exploded for next one level down only.Further level will not be exploded,that means Dependent requirements are created for the BOM components one level down, further level will not processed.

This allows MRP controller can ensure that the MPS items are correctly planned before any MRP run takes place. This allows the planner to check and change the planning result, before any MRP run takes place for other materials.

For example,consider this business scenario, suppose one wants to do planning for finished Goods once pre week, but it is necessary to do planning for their components on daily basis.

so for this exmple, you can define Finished materials with MRP type as MPS and all the components with MRP type as MRP.

MPS run is carried out before the MRP run. So that the Planner can ensure planning result before the MRP run.

MRP.

MRP Run will plan all BOM level of Materials.

i hope i have tried to clear your doubt some what.

for more information please see following links

http://www.sap-img.com/production/difference-between-mrp-vs-mps.htm

http://www.sap-basis-abap.com/sappq002.htm

thanks

pradeep.

[siddheshwar_rajguru2]

Hi,

It control the planning as it is marked MPS item, in BOM level.

Below this system will not planned any materil.

Even it reduce the cost if inventry as it MPS , so the cost is also one of the most important factor in to run MPS.

Regards

Siddhesh

[siddheshwar_rajguru2]

Hi,

It control the planning as it is marked MPS item, in BOM level.

Below this system will not planned any materil.

Even it reduce the cost if inventry as it MPS , so the cost is also one of the most important factor in to run MPS.

Regards

Siddhesh

[Former Member]

Ameya,

With MRP all levels will be planend. How will you control planning upto only one level below. Only by assigning the MRP type as MPS. If you define MRP as PD then all levels will be planned.

Regards

Ram

[Former Member]

Hi,

1. MPS Planning run includes only master schedule items.

Dependant reqmts are created for the BOM level directly below the planning level.

and level below this are not planned.

2.This means MRP Controller can authorise any changes to the master schedule item befor they affect any BOM Level.

3.Once the master plan has been fine tuned for master schedule items we can start the total planning run.

Regards,

nandha