Materials Requirement Planning or MRP compares the requirements for end products, from Demand Management, with the current stocks and creates planned manufacturing orders.
What is MRP?
MRP stands for: Materials Requirement Planning is a sub component of enterprise resource planning solution. The function of MRP is to provide material availability, that is, it is used to procure or produce the requirement quantities on time. This process involves the monitoring of stocks and demand, leading to the automatic creation of procurement proposals for purchasing or production. The main objective of MRP is to determine which material is required, the quantity required and by when it is required.
Process of Materials Requirements Planning
- MRP compares the requirements for end products, from Demand Management, with the current stocks and planned manufacturing orders
- MRP chooses a Production Version which indicates the Bill of Material and Routing to be used
- MRP then explodes the product BOM’s to determine the ‘dependent requirements’ for intermediate products and purchased raw materials
- MRP will normally be run weekly.
- The MRP process assumes infinite capacity
- The Rough-Cut Capacity Planning check in SOP ensures that the loading is broadly correct before MRP runs.
For the MRP procedure, use MRP type PDPD in the material master. MRP creates planned orders or requisition receipts to balance the demand plan. Safety stock can be used to cover unplanned requirements.
Who is Responsible for MRP
MRP Controller is Responsible for running and operating the material requirement planning to check and track the planned requirement for both finished products and raw material in order to generate Production Orders and Purchasing Requisitions.
There are several options for analyzing the Planning run
- By material
Stock requirements list
- By material
- Printed MRP list
- Use the MRP list to analyze the planning result
- The MRP list displays the future stock/requirements situation at the time of the last planning run
- By using the collective display, you can select a specific MRP list based on plant and MRP controller
- Analyze the exception messages in the MRP list, judge and or solve problems
- Use the processing indicator to indicate that you checked the material
- Is the output of an MRP run
- Are automatically created
- Planned orders may be converted to production / process orders or purchase requisitions
MRP Related Transactions
- MD01 Total Planning Run Online
- MD02 Single-Item, Multi-Level
- MDBT Total Planning in Background
- MD07 Stock Requirements List Collective
- MD05 Evaluate MRP List
- MD44 Planning Situation Material