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Sap MRP: Is Carried Out in Five Steps

SAP MRP is carried out in 5 steps: 1) net requirement calculation, 2) lot-sizing procedures, 3) procurement types, 4) scheduling, and 5) BOM explosion. It calculates net requirements by comparing firm receipts and requirements over time. Lot-sizing procedures determine order quantities using static, periodic, or optimum methods. Procurement types define whether materials are produced in-house or externally procured. Scheduling uses backward and forward scheduling to plan order dates. BOM explosion calculates component requirements for production based on the order finish date.

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527 views2 pages

Sap MRP: Is Carried Out in Five Steps

SAP MRP is carried out in 5 steps: 1) net requirement calculation, 2) lot-sizing procedures, 3) procurement types, 4) scheduling, and 5) BOM explosion. It calculates net requirements by comparing firm receipts and requirements over time. Lot-sizing procedures determine order quantities using static, periodic, or optimum methods. Procurement types define whether materials are produced in-house or externally procured. Scheduling uses backward and forward scheduling to plan order dates. BOM explosion calculates component requirements for production based on the order finish date.

Uploaded by

sunil khallal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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SAP MRP 

is carried out in five steps:

1) Net Requirement Calculation


2) Lot-Size Procedures / Calculation
3) Procurement Types / Proposal
4) Scheduling
5) BOM Explosion

1) Net requirement calculation

- A comparison of firmed receipts & requirements takes place along time axis.
- If a material shortage occurs then the system calculates a net requirement.
- Available Qty is Stock-Safety Stock.
- Net requirement = Total requirement - Avail Qty.
- You can define the available part of the safety stock in a MRP group.
- New order proposals are not created until stock levels have fallen below the
available portion of safety stock

2) Lot size Procedures

There are 3 Lot sizing procedures in SAP R/3 Static, Periodic & Optimum lot
sizing.

a) Static lot sizing


–Lot-to-lot order quantity
–Fixed lot size
–Replenish up to maximum stock level

b) Periodic lot sizing


–Daily lot size
–Weekly / Monthly lot sizing
–Flexible periods according to planning calendar

c) Optimum lot sizing


–Part period procedure
–Least unit cost procedure
–Gross reorder procedure
–Dynamic lot size creation
-Net requirements are used in lot size calculations to determine the quantities of
the individual order proposals
-For period or optimum lot-sizing procedures, several net requirements are clubbed
together in one order proposal.

-Lot sizes can be restricted by using options


-–Define maximum or minimum lot size
-–Rounding value functions

3) Procurement types

- Procurement types define whether a material is produced in-house or procured


externally.
- If the procurement type is “E” then the system always uses in-house production
time.
- If the procurement type is “F” then the system always uses Planned delivery time
- All other types of procurement like stock transfer, sub-contracting, production in
other plant are carried out using special procurement key.
- Procurement key & special procurement key are available in MRP-2 screen of
material master.

4) Scheduling

Backward Scheduling

- The goods receipt processing time specifies the number of workdays required by
the stores person to check the material received & to place it in stock.
- In-house production time is calculated by adding lead time & the floats before &
after production.
- The opening period represents the processing time required by the MRP
controller for converting the planned orders.

Forward Scheduling

- The system schedules forward starting from the basic start date.
- "today" scheduling: The system carries out forward scheduling using the current
date as a basic start date.

5) BOM explosion

- In BOM explosion, the system calculates the components or assemblies required


for the appropriate BOM
- The key date for evaluation of the BOM (Explosion date) is the order finish date
of the planned order
- Using the lead time offset in the BOM you can displace the dependent
requirements date of a specific component

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