SAP MRP Configuration

The following are the Major Configuration items explained in detail: a) Activating MRP and Planning File Entry b) SAP MRP Plant Level MRP Parameters Configuration c) SAP MRP, MRP Group Level Parameters Configuration d) Configuring SAP MRP Types e) Configuring SAP MRP Scope of Planning for the Total Planning Run f) Configuring SAP MRP Planning time fence and Roll Forward Period g) Configuring SAP MRP Areas h) SAP MRP Dynamic Safety Stock (Range of coverage Profile) i) Configuring SAP MRP Days Supply and Receipt Days Supply
SAP MRP Configuration

Activating MRP and Planning File Entry This configuration allows you to choose the plant for which you would want to activate SAP Material Requirement Planning (SAP MRP). Activating MRP for the plant allows one to use the SAP MRP tool for the plant. SAP Transaction code OMDU and the SAP path is Logistics > Production > MRP > Planning File Entry > Activate MRP and Set up Planning File Activating Planning file entry for the plant (through a variant that can be rescheduled) allows you to collect all the material which has an MRP Type (other than XO) in the planning file, i.e., once the planning file entry has been activated and MRP Types are assigned to the materials in the MRP 1 View, it collects all these maerials and adds them to the planning file list in SAP The process of recording a planning file entry for a material, can be run periodically using a batch job scheduling method. The transaction code to set up the variant and period scheduling is OMDO and the Path for activating the planning file set up is Logistics > Production > MRP > Planning File Entry > Activate MRP and Set up Planning File All the entries in the planning file will have a “change indicator” specifying that a material has undergone a change (change in receipts elements or issues elements). This indicator will help you to choose only those materials that have undergone a change, through the use of planning key called “Net Change Planning” when running MRP. The planning file record for a material also has a “net change planning in the current horizon” field which will be set if the change in the materials receipt or issue element is valid in the planning horizon. This indicator will help you choose only those materials which have undergone a change in the planning horizon; through the use of a planning key, in an MRP run, called “Net change planning in the planning horizon”. Plant Level configuration for MRP SAP MRP is run at plant level or at a group of plant level (called as scope of planning), thus the MRP configuration is done at Plant level.

The configuration done for SAP MRP at Plant level would also be true for SAP Consumption Based Planning (SAP CBP) settings. Transaction code OPPQ takes you in to the SAP MRP configuration called as – Plant Parameters for Material Requirement Planning. The Path which can be used is Logistics > Production > Material Requirement Planning > Plant Parameters > Carry out Overall Maintenance of Plant Parameters. The Transaction code for Consumption Based planning is OMI8 and the Path is Logistics > Materials Management > Consumption Based Planning > Plant Parameters > Carry out Overall Maintenance of Plant Parameters.

Fig MRP - Config 1

In the transaction code for Plant level parameters for SAP MRP, you should first input the plant and press the maintain button. If you have already maintained the configuration for the parameters, then it states so, if you haven’t then it simply says – “To Maintain” next to the parameter

i. though you can have your own availability check rules created or configured. the purchase requisitions. . Every number range interval.. the simulative dependent requirements.Config 2 Following are the parameters that need to maintain as a part of SAP MRP/CBP Configuration: a) Number ranges The number range ID’s are maintained for the following objects: the Planned orders the reservations. has an ID. the MRP Lists.Fig MRP . every plant can have a different number range for the objects mentioned above. b) Availability Check rule for Backorder Processing As per standard SAP. the Availability checking rule for the backorder processing is “PP”. In this section only the number range ID’s are maintained. the dependent requirements. created using OMI2 and OM13.e. while the actually number range configured for the number range ID is maintained in the transaction code OMI2 for the above objects created in the planning run (MRP Run) and in transaction code OMI3 for the objects created manually in the front end. which can be allocated to the objects at plant level.

month. assigned planned orders. e) Floats Floats are buffers in the total lead time. QM Inspection lots. reservations. Here you can configure the list of MRP controllers for the plant. • To configure the objects. You have to assign the MRP controller to the Material Master MRP 1 View. dependent requirements. purchase orders. A MRP Controller is a person or a group of people. so as to delegate the responsibility of the planning and evaluation of planning for that material. This time is available for the MRP controller to convert a planned order into a purchase requisition or a production order. c) Reporting This configuration is used for the following purposes. planned independent requirements etc) which are to be considered or not to be considered during the SAP availability checks. MRP list. the backorder processing etc. reservations. The Checking groups are configured to be associated with the checking rules (checking scopes). Opening period: Number of working days between the date that the order is created and the planned start date. The schedule margin key is used in the Material Master MRP 2 View. Production orders) and issues (Sales orders. The availability checking rule (checking rule scope) has to be maintained. you should have the Availability checking groups maintained in the material master. firmed planned orders. To have the checking rule work along with the configuration. the availability checks of the header material at the time of sales order delivery. It is used in MRP as well as in production order. week. for a given SAP functionality and it has to be assigned to the availability checking group maintained in the material master. safety stocks • To configure the reporting of “periods totals” in terms of a defined period (day. The SAP functionalities that use availability checks to check the availability of the header materials as well as components at the plant at the time of sales order creation. that are provided in production/process order or in the planned orders created manually or during an MRP run. which is responsible for planning a material or a given list of materials.Every Availability checks rule (availability checking scope defined) has a set of receipts (Purchase orders. The floats are defined using the scheduling margin key. periods as per planning calendar) of in Stock requirement list. . firmed purchase requisitions. the availability checks for components in production – thus reporting the missing parts list. which are to be considered in the calculation of the “receipts days supply” like the production orders/process orders. simulative MPR or interactive MRP d) MRP Controllers This is a mandatory configuration.

Before ProductionFl. used as a float in production scheduling. Y or X to the Key number. Float before production: Number of working days between the order start date and the scheduled start date.Float after production: Number of working days between the scheduled finish date and the order finish date. Fig MRP . The special procurement functions are withdrawal from alternate plant. Normally when creating the special procurement key use Z. Plant Plant Name 0001 0001 0001 0001 0001 0001 Margin Key 001 002 002 Opening (In Days) 5 5 5 PeriodFl. Example: For Stock Transfer from Plant C001 to Plant C002 Create the Special procurement key (Key number = 12 as an example) in the plant C002 with the procurement type as “F” and special procurement as “U” (Stock transfer) and the special procurement plant as “C001”. used as a float in production. Scheduling release period: Number of workdays between the planned start date and the date for releasing the order. direct production. If the order release indicator is set. phantom item planning.Config 3 . production in alternate plant. the production order is released by a background program that takes all dates into account. so instead of having Key number as 12. After ProductionRelease Period (In (In Days) (In Days) Days) 2 2 5 3 3 5 4 4 5 f) Special Procurement The special procurement function helps you to configure and assign special procurement to the materials which can be used during an MRP run while creating the procurement proposal. we could have something like Z2 or YA etc. subcontracting.

Config 4 Similarly for Subcontracting.Similarly for Withdrawal from Alternate plant. you could have a Configuration as below: Fig MRP . you could have a Configuration as below: .Config 5 Similarly for Production in alternate plant. you could have a Configuration as below: Fig MRP .

which the system should use as default during the planned order conversion. Though there is one more place in the planned order Scheduling parameters MRP configuration. Similarly. which has a Status Released for all purposes or released for costing) etc. Knowing the selection procedures allows the MRP run to select the right BOM and task list for the planned orders. but if you are using multiple production/process order types. A selection procedure is set to select BOM or Routing/Recipe on priorities set for the BOM usage or for the task list types and the task list status. you could have the BOM Selection being set for selection of the Production BOM Usage first and if a BOM for the material with the Usage – production (Usage = 1). Again we would maintain the standard Checking rule as PP or you could alternatively configure one for yourselves. Fig MRP . .Config 7 g) Dependent Requirements availability check When carrying out the availability check for each of the components in a MRP BOM explosion. then you should not be maintaining defaults here. In other words. Note: This can be a useful tool when you are using one production order type and one process order type. since it helps selection of BOM and task lists in the planned orders. is not found. you could have a task list of type Routing or Recipe or reference operation sets selected and set in priorities of selection (1st – Routing. Also for the purchase requisition conversion. where you can maintain the selection ID for selection of the Task lists (Routing/Recipe/Rate Routing). Setting defaults in the plant parameters configuration allows the system to fix and select the order type for a plant during the conversion process. you can maintain the production order type or the process order type.Config 6 g) Conversion for Planned orders In this configuration parameter. you could have the system search for a BOM of universal Usage (Usage = 3). 3rd. the system needs to know the availability checking scope rule. h) BOM/Routing Selection ID This configuration parameter is really important and it is mandatory to maintain one. 2nd – Reference operation sets. you are given an option in the configuration to define the maximum number of planned orders that can be converted in to Purchase requisition.Fig MRP .

i. specifying the routing/recipe that would be selected for detailed scheduling. The following control parameters can be configured here: • The Routing/Recipe Selection ID. then the basic date scheduling is used where the in house production times from the material master is used. • The Adjust planned order dates configuration option allows you to readjust the scheduling results or the basic dates every time you carry out Scheduling. scheduling using takt times. as per the priorities set for task list type and task list status. Though there is one more scheduling configuration option provided by the system for overwriting/adjusting the existing basic dates by the new dates arrived at. using the task list is only carried for the scheduling Horizon mentioned. but it also setting the dates of the dependent requirements to the operation start date or the order start date.e. • The Detailed scheduling. This configuration not only adjusts or sets the dates of the header planned order and the dependent planned orders. You can leave the MRP controller as “*” to have the scheduling parameters true for all the planned orders across all the MRP controllers. scheduling horizon. • The Task list selection.. if the planned orders dates lie beyond the scheduling horizon. • Generate Capacity requirements indicator allows generation of the capacity requirements for the work centers and loads them accordingly. The various options available are rate based scheduling. • Allow Scheduling Indicator allows the planned orders to be scheduled using the detailed scheduling or basic date scheduling. either of the two.h) Scheduling of Planned orders This configuration parameter is really important and it is mandatory to maintain one. but it also generates capacity requirements for the same. scheduling indicator and the capacity indicator can also be set for rough cut planning used for Long term planning purposes. The loading of the work centers is as per the use of the work center determined through the scheduling carried out. The system not only offers an option to adjust the basic dates for the planned order arrived at by using the scheduling level set. lead time scheduling. through rescheduling (using the scheduling level as mentioned). depending upon the availability of the task list and scheduling type selected for the MRP run. • The next configuration parameter talks about the configuration of the selection of the type of scheduling level that should be used for adjusting the basic dates of planned orders. See below for the details of adjusting dates in scheduling and adjusting dates for capacity requirement generation: • You can adjust the Basic Dates of the header planned order using the scheduling level and adjust (or set) the dependent requirements to the start of the header planned order . It allows you to set the control parameters for scheduling of planned orders of type LA at a given plant and for a given MRP Controller.

• One of the scheduling parameters is “reduction measures”. • Start date in the in the past options allows you to push the start date of the planned orders to a certain number of days in past. if you are not using it. used to reduce the total order lead time in circumstances designed. Fig MRP . If the order start date goes beyond the number of days allowed.Config 8 . You can avoid configuration of reduction measures.• You can adjust the Basic Dates of the header planned order using the scheduling level and adjust (or set) the dependent requirements to the start of the respective operation to which the dependent requirements are assigned to • You can decide not to adjust the Basic Dates of the header planned order arrived at by using the scheduling level and at the same time not-adjust (or not set) the dependent requirements to the start of the header planned order • You can decide not to adjust the Basic Dates of the header planned order arrived at by using the scheduling level and at the same time not-adjust (not set) the dependent requirements to the start of the respective operations to which the dependent requirements are assigned to • You are also provided an option to configure the scheduling type – whether forward or backward scheduling. then the system uses the concept of ‘today’s scheduling” and sets the start date of the planned order to today’s date and carrying out forward scheduling there-after. It is a normal behavior for the standard system to have this configured as “backward scheduling” so that SAP MRP (material requirement planning) never misses the customer delivery date or order availability date. any orders during the breaks set in the factory calendar. An option is also provided to not-to-schedule.

It is indeed a nice additional option provided by SAP for using the lead time from info records. the planning horizon is number of work days as mentioned (let’s say 180 days) from today’s date. You can set the MRP group in the material master MRP 1 View. So as to use the planned delivery times from the purchase info record. with the same vendor in the source list and the purchase info record. which fall in the planning horizon starting from today. in its net requirement calculations. using the planned delivery lead times from the purchase info record or purchasing agreement. In other words. You can group materials using MRP Groups. j) Planning Horizon Maintaining a planning horizon helps the system to plan only those demands. one can maintain the default lead time required for conversion of Purchase requisition into purchase order. would allow planner to configure these materials (through MRP Groups) to behave in a certain manner for planning purposes. Using the planned delivery times from the material master or from purchase info record. k) Available stock for net requirement calculations SAP MRP offers you a choice to select the most controversial stock types. blocked stock. one should also maintain the source list for the material. The stock types are – stock in transfer (stock in transfer is considered as stock at the receiving plant as it is already issued from the sending plant). is totally a decision of the consultant. the system would not plan any orders whose start date lies beyond this horizon. since by assigning the MRP groups to a set of materials. restricted batch stock (stock of batches marked with restricted batch) Fig MRP . Each of the MRP Group can have its own MRP Parameter set.Config 9 l) Option to trigger direct Production in MRP or in production planning j) Allowing start date in the past MRP Group Level configuration for MRP The entire configuration that is created as a part of SAP MRP Plant level parameter in the above steps can be also set for an MRP Group. all the materials in the .i) Default Values for External Processing For external purchasing. MRP Group can be maintained using transaction code OPPR or the transaction path – Logistics > Production > MRP > MRP Groups > Advantage of working with MRP Groups: Working with MRP groups can be convenient for a plant or an organization. When an MRP Run is taken.

you can also make to material work as a made-to-order material. a) MRP Procedures MRP Procedures defines the type of MRP to be used – Reorder point planning methods. BOM and task list selection ID’s. Strategy Groups The strategy groups can be set for a given MRP group at a given plant. Forecast based planning methods. The group could have its own unique: Strategy group. groups together the relevant planning strategies of a material. Material requirement planning or demand based planning methods. The strategy group consists of a number of planning strategies assigned in a sequence of priorities. The primary strategy for the material is 40 – Made-to-stock while the secondary strategy is 20 – Madeto-order. by changing the requirement type – “KE” of the material in the sales order procurement tab. Planned order scheduling parameters. then we would have to manually maintain the strategy groups on the materials MRP 3 view. a consultant should know the importance of MRP types and the involved pre-configured parameters. Thus the organization can device multiple MRP groups with their own planning features and characteristics rather than having one set of planning features set at the plant level. MRP Types is not something which one should configure in SAP. If you don’t see the default strategy groups. it is used as a standard would then have a unique planning method or unique planning features. Conversion order types. the strategy groups. which means that every time you plan or produce a material or create a sales order for the material it will always primarily work as a made-to-stock material. MPS and the no planning procedures to mark a material with a MRP types that does not plan a material at all. For example: A material can have the priority 1 strategy as Made-to-Stock (planning strategy 40) and then priority 2 planning strategy as Made-to-Order (planning strategy 20). Nevertheless. Direct procurement parameters. . to suit for made-to-order. Defaulting the strategy groups is a nice idea when the strategy groups would remain the same across all the materials which would be assigned with a given strategy group. In other words. Start number of days allowed in the past Availability checking groups. which the system would allow since the material’s secondary planning strategy is made-to-order. Time phased planning methods. Nevertheless. Planning time fence and roll forward periods. Assigning this “strategy group” for a MRP group in the MRP Group Parameters configuration and then subsequently assigning the MRP Group to the material master would make the material work on a planning strategy 40 and planning strategy 20 in a sequence of priority. Planning horizon. Configuring SAP MRP Types In all probabilities.

M3. Actually there are 2 options in this field. when you are working with reorder point planning based MRP types. But the dates of these new Procurement Proposals are pushed outside the planning time fence No New Procurement Proposals created to Cover the material shortages within the planning time fence X X X X c) Include External Requirements The inclusion of external requirements in net requirement calculations is available to be set. P3. When working with the planning time fence. the Customer demand will be considered as it falls in the planning horizon and it will reduce the warehouse stock proportionately which would trigger the reorder point planning procurement once the stock falls below the reorder point. P2. M1. SAP offers 8 different MRP types with Firming namely P1. include external requirements in the total planning horizon or restrict the inclusion of the external requirements only within the replenishment lead time. 0 Firming type M0 MRP Types P1 M1 P2 M2 P3 M3 P4 M4 1 2 3 4 Firming Methods for Procurement Proposals in the Planning time fence No Firming of Procurement Proposals within the X planning time fence Automatic Firming of Procurement Proposals within the planning time fence Manual Firming of Procurement within the planning time fence (No Automatic Firming of the procurement proposals ) X X X X Treatment with New Order Proposals in the Planning time Fence Automatic Creation of New Procurement Proposals to cover the shortages within the planning time fence. one needs to set the firming methods & the scheduling methods of the procurement proposals within the planning time fence. M4. P4 and M0. . i.. For example: If the external requirements are set to be considered in the total horizon (of 7 weeks) then in the today’s MRP run.b) Firming Type In the category of MRP procedure called – MRP or demand based planning method and MPS. M2.e.

whether total consumption (planned + unplanned consumption) or unplanned consumption.If the external requirements are set to be considered in the Replenishment lead time. . planned consumption is updated and when the consumption is not planned as per the reservation or is greater than the reservation quantities. c) Forecasting for MRP Forecasting MRP Types have a “forecasting indicator” as obligatory. In MRP type configuration. like the MRP Type X0. reservations of components in plant maintenance orders. thus triggering reduction in warehouse stocks. When the consumption is planned as per the MRP reservations. reservations set for the components in a production order. stock transfer requisitions created for Stock transfer orders. the type of forecast requirements to be considered in MRP planning run. let’s say the Replenishment lead time is 1 week. requirements to satisfy the Stock transfer order to another plant. The reduction method for forecast requirements is also configurable. The default is reduction by consumption. you have an option of choosing the type of historical consumption of a material to be used for planning whether total consumption (planned + unplanned consumption) or unplanned consumption. After choosing the historical date type. Fig MRP . only in a MRP run triggered one week before the start date of the external demand. requirements raised because of stock transfer delivery schedules. d) Planning method The MRP type offers you to plan the materials in an external system. this customer demand will be considered.components supplied to the vendor in a subcontracting case. then unplanned consumption is updated. Also the historical data is updated in the material master as total consumption (planned consumption plus unplanned consumption) or unplanned consumption. unlike other MRP types which normally have the forecasting indicator set to optional. then in that case.Config 11 SAP also offers an option to select the additional external requirements that should also be included in the net requirement planning calculations like the . you should configure. The indicator called the planning method allows you to choose external planning so as to plan materials in the external system.

Config 10 Configuring SAP MRP Scope of Planning for the Total Planning Run SAP provides an option to plan multiple plants together or multiple MRP areas in one planning run in a sequence. can be used to configure. Step 1 – Define the Name of the Scope of planning run Step 2 – Define the plants or MRP areas to be included in the planning run arranged in a sequence. Transaction code OM0E can be used for configuration or the logical SAP path – SAP Customizing Implementation Guide > Production > MRP > Planning > Define Scope of Planning for Total Planning. Fig MRP . The sequence is defined by the first field called Configuring SAP MRP Planning time fence and Roll Forward Period The transaction path to configure the planning time fence and roll forward period is: SAP Customizing Implementation Guide > Production > Material Requirements Planning > Planning > MRP Areas > MRP Calculation > Define Planning Time Fence and Roll Forward Period Planning Time Fence: .e) Automatic Calculations You can have the safety stock and the reorder point calculated automatically by the system. In the automatic calculations the system uses the forecast data. when you are using the automatic reorder point planning methods.

they are automatically firmed for protection. When they move in to this fence. delivery schedules) in the planning time fence prevents the proposals in the time fence from being adopted in the next planning run. within which you can protect the master plan or in other words the procurement proposals of a master plan from being disturbed or changed from any automatic changes to the master plan. in the planning time fence. The system calculates the time fence from today’s date plus the “number of days mentioned as planning time fence” in the material master or in the MRP configuration (where you can define the planning time fence for plant or for a given MRP group). It is needless to say that any new requirements are not included in this time period nor the existing requirements are changed. MRP carries its usual planning outside this fence without interrupting this fenced period.The planning time fence is the number of work days. The procurement proposals are firmed so as to protect them from any changes. The firming of the procurement proposals (planned orders. purchase requisitions. when the fence moves ahead on the time scale. And in order to make sure that the BOM levels below are not exploded or changed in a planning run. . the system does not create or delete any procurement proposals nor does it changes the existing proposals. so that they are available for adjusting dates and quantities in the next planning run. in cases where there is change in BOM or task list. Firming for component’s planned orders: In case of a planned order. Firming for automatically created procurement proposals: The automatically created procurement proposals in the MRP Run are not firmed by the system. Firming for manually created procurement proposals: For manually created or changed procurement proposals or even when you reschedule the planned order in the graphical planning table. You can though manually firm the planned orders individually or collectively using transaction code MD19 Note . the system always marks them with a firming indicator. you have to set the “firming components indicator” See the below Example – Planning time fence is 3 days. In other words.Automatically created planned orders in the planning time fence are only remain firm till they are in the planning run. you can manually firm it by selecting the “firming planned order Indicator” in the planned order header. Though you can remove or delete this firming indicator. Configure Planning Time fence and Roll Forward Period Plant 0001 0001 MRP Group 0001 0002 Planning Time fence 14 14 Roll forward Period 32- It is logical that any procurement proposal lying outside this fence would start moving in to the fence one by one.

This period can be defined for number of days in past or future. you would have to create a scope of planning in MRP configuration. which contain the MRP area or a set of MRP areas arranged in sequence of planning. you can have the system delete all useless old firmed planned orders. since they were firmed. This allows for reorganizing the planned orders. Configuring MRP areas Step 1: Activate MRP Area: Use the transaction path: SAP Customizing Implementation Guide > Production > Material Requirements Planning > Master Data > MRP Areas > Activate MRP for MRP Areas . If a MRP area is not assigned to the material. It also creates new proposals to cover any requirements pending during the MRP run. which otherwise the system would never had deleted.Planning Start Date Today – Day 2 Day 1 Planning time fence Planned Planned Order 1 Order 2 Auto Auto Firmed Firmed Day 3 Day 4 Day 5 Day 6 Day 7 Day 8 Planned Planned Order 4 Planned Order 3 Order 5 Auto Firmed Not-firmed Firmed Planned OrderPlanned OrderPlanned 5 6 Order 7 Not-firmed Not-firmed Not-firmed Next Planning Start Date Planning time fence Planned Order 4 Planned Planned Order Order 5 5 Auto Firmed Auto Firmed Auto Firmed Roll Forward Period The Roll Forward Period adds the functionality of automatic deletion of firmed planned orders. Assigning MRP areas: To have the “MRP Areas” work. Configuring SAP MRP Areas Long ago. The system deletes all the firmed planned orders that lie before the roll forward period. you have to activate the MRP areas and then create them and then assign them to the material master MRP 1 view. You can define your own area for which you want to run MRP without disturbing other areas. Using the roll forward period. Then SAP came up with the concept of running MRP at MRP areas. Running MRP for MRP Areas: For running MRP at a MRP area. from the master plan. then it will work as per the plant level MRP area. SAP MRP was only at the plant level or at MRP controller level (activated through a user exit).

The transaction path is: SAP Customizing Implementation Guide > Production > Material Requirements Planning > Planning > MRP Calculations > Define Range of Coverage Profile (Dynamic Safety Stock) Range of coverage Configuration: . so that when you run the MRP for this MRP area. Storage Location MRP Areas: You can create MRP areas for several storage locations at a plant.Step 2: Define MRP Areas: Use transaction path: SAP Customizing Implementation Guide > Production > Material Requirements Planning > Master Data > MRP Areas > Define MRP Areas Types of MRP Areas: Plant MRP Areas: You can create one MRP area for several plants. You cannot use one subcontractor in multiple MRP areas. the safety stock is an absolute value provided directly for a material whereas the dynamic safety stock is calculated by the system on the basis of the coverage period and average daily stock calculated internally by the system. therefore it is more statistical value rather than an absolute value. The Dynamic safety stock is calculated in every planning run. The range of coverage configuration contains the parameters for the calculation of the dynamic safety stock. You cannot use one storage location in multiple MRP areas. Safety stock as we know is used to cover the fluctuations in the requirements. Subcontractors MRP Areas: You can create MRP areas for several subcontractors for a plant. The dynamic safety stock is a stock calculated based on the average daily requirements for a period rather than the actual requirements over the period. the run is for all the plants configured in the MRP area. so is the dynamic safety stock. Configuring SAP MRP Dynamic Safety Stock (Range of coverage Profile) The Range of coverage profile is configured for the use of Dynamic safety stock for a given material. the only difference being.

maximum.Config 12 Configuration for calculation of average daily requirement for a period Period indicator . The Target range of coverage defined here would be used to calculate the Dynamic Safety Stock for the period of the coverage. and target range of coverage. and if it is terms of standard days. are defined for 2 separate period lengths and the 3 rd period length is for the rest of horizon.Indicate the type of period. . then you would have to enter the number of days in a period in the configuration (Let’s say that the configuration was done with workdays and the factory calendar has 7 days per week) Therefore Average daily requirement = = Requirements in the period (Requirements in 13 Weeks – Lets say 910 Units) / (Number of Periods – Lets say 13 Weeks) * (Number of days in the period – Lets say 7 days) = 910 / (13*7) = 10 Units Configuration parameters for calculation of Dynamic Safety Stock for the Range of Coverage You can define 3 different range of coverage – minimum. then the factory calendar work days are considered. (Let’s say it is W – Week) Number of Periods – Number of periods used to calculate the average daily requirements (Let’s say it is 13 Weeks) Type of Period length – It defines the number of days in the period.Fig MRP . which is used to calculate 3 different stocks using the average daily requirements (range of coverage multiplied by the period length). whether week or month or according to PP planning calendar. The coverage’s and the periods for which they should work for. if the period length is in terms of calendar days then it is considered in terms of Gregorian calendar. The Period of the coverage is specified in the configuration. if the period length is in terms of workdays.

target range of coverage in the MRP List or Stock requirements list’s “Period Total Display” Section. Whereas in the example below. target and the maximum stock is calculated for the average daily requirement over the respective coverage periods. You can check the minimum. target stock levels. maximum. maximum range of coverage. we have defined the safety stock to cover a period of 7 days (minimum. SAP creates a procurement proposal for 50 units to reach back to the target stock level. all the 3 stocks levels – minimum. As per our example. all the 3 stocks types are 70 units. therefore when the stocks fall below the 70 units. maximum. would immediately create planned orders to suffice at least the target stock level.In the example. for the first period of 13 weeks. For example if the minimum stock level is 30 and the maximum is 80 and the target stock is 50 units. and target stock levels would be 70 Units and for the next period of 26 weeks it will be 70 units as well and for the rest of the horizon it will be 70 units again. the system will try to raise a procurement proposal to reach back to 70 units. The minimum. then if the available stocks fall below the 30 units mark. SAP planning run. minimum range of coverage. As per our example in the configuration screen shot – Dynamic safety stocks Dynamic safety stocks for Dynamic safety stock for the 1st period of 13 the 2nd period of 26 weeks Dynamic safety stocks for formula summarized as = weeks the rest of the Horizon Average Daily Stock * Range of coverage 70 Units Minimum safety stock 70 Units Target safety stock 70 Units Maximum safety stock 70 Units 70 Units 70 Units 70 Units 70 Units 70 Units Another Example of Dynamic Safety Stock . Normally when the available stock falls below the minimum stock level. target and the maximum range of coverage).

the SAP MRP run would create the procurement proposals (Let’s Say planned order) for a quantity to suffice at least the target safety stock level or the dynamic safety stock level = 8 Units. Dynamic safety stock Dynamic safety stocks Dynamic safety stocks for Dynamic safety stocks for formula summarized as = for the 1st period of 8 the 2nd period of 8 weeks the rest of the Horizon Average Daily Stock * weeks Range of coverage = 2 * 16 = 32 Minimum safety stock = 5 * 16 = 80 Target safety stock = 7 * 16 = 112 Maximum safety stock = 7 * 16 = 112 = 7 * 16 = 112 = 5 * 16 = 80 = 5 * 16 = 80 = 2 * 16 = 32 = 2 * 16 = 32 Configuring SAP MRP Day's Supply and Receipt Day's Supply .Config 14 Step a) Demand for 8 Weeks = 800 Step b) Average Daily Requirements = 896 Units of Demand for 8 Weeks / (8Weeks * 7 Days Per Week) = 896/(8*7) = 896/56 = 16 Units Step c) Calculation of Safety Stock for the coverage period As per our example in the configuration screen shot – For the first period. when the stock falls below 32 units (minimum Stock Level).Fig MRP .

SAP offers 2 types of evaluations in SAP. the days supply would calculate the number of days on the time axis. The days supply values or the receipt days supply values can be correlated with the range of coverage concept. till the material requirements can be satisfied purely by the current available stock. you can only configure the days supply if you feel the SAP pre-configured ones are not what you want. In the SAP MRP Evaluation transactions such as stock requirement list or MRP list. SAP offers a configuration to select the receipts elements for receipt day supply 1 and 2 evaluations.Config 13 Day’s Supply Number of Days Stocks will Cover the Requirements Receipt Day’s Receipt Day’s Supply 1 Supply 2 Consider Current Stocks only in calculation of Days Supply X Only Consider Requirements Current available Stocks to cover . the days supply and the receipt day’s supply. These tools comes with traffic lights – red. The transaction path for the same is SAP Customizing Implementation Guide > Production > Material Requirements Planning > Evaluations > Define Receipt Elements for Receipt Days' Supply Fig MRP . While the Receipt Day’s supply would indicate how long would the current stock and the expected receipts would cover the requirements. There are 2 receipt day’s supply evaluations offered by SAP called as the receipt day’s supply 1 and receipt days supply 2.The days of supply is not a mandatory configuration. which would help the planner to foresight and take necessary actions in advance. There is also an option to have the receipt day’s supplies to be calculated when the stocks fall below the safety stock or below the current available stocks. yellow and green which offer warnings to the MRP Controllers/users and lets him/her strategically know when the material stock would be totally consumed out.

Purchase orders. Receipt Reservations. Schedule lines. Shipping Notifications X Consider all the possible receipt elements along with the plant stock Example – Firmed Planned orders.Production order.Consider Receipts also along with Current Stock in Calculation of Days Supply Firmed Planned orders. Purchase orders. Receipt Reservations. Planned orders assigned with Production versions. Firmed Purchase Requisitions. QM Inspection Lots Example for Days Supply and Receipt Days Supply: Days’ Supply for Material M1 on Today = 3 days (Receipts are not considered) Day Requirements Available Qty Stock Balance Left after covering Requirements Today 2nd Day 3rd Day 4th Day 5th Day 6th Day 20 30 50 52 40 20 Current Stock = 100 Stock Available = 80 Stock Available = 50 100 – 20 = 80 80 – 30 = 50 50 – 50 = 0 (Stock = 0) Days’ Supply on Today = Coverage’s Considering without the receipts = 3 Days Exactly Receipts Days’ Supply for Material M1 on Today = A little more than 4 days (Receipts are also considered – This example can be for Receipt Days supply 1 or 2) Day Reqmts Expected Receipts Available Stock Stock Balance Left after covering Requirements . Schedule lines. Planned orders assigned with Production versions. X Consider all the Most Certain receipt elements along with the plant stock Example . Firmed Purchase Requisitions. Shipping Notifications.

15 = 4.Today - 20 Firmed Planned order = 10 Production order = 5 Total Receipts on day = 15 Available = 100 (100 + 15) -20 = 95 2nd Day - 30 Total Receipts on day = 0 Available = 95 (95 + 0 ) – 30 = 65 3rd Day - 50 Production order = 25 Total Receipts on day = 25 Available = 65 (65 + 25) – 50 = 40 4th Day - 47 Planned order = 8 Production order = 5 Total Receipts on day = 13 Available = 40 (40 + 13) – 47 = 6 5th Day - 40 Planned order = 5 Total Receipts on day = 0 Available = 6 (1 + 5) – 40 = .15 Days .34 Shortage 6th Day - 20 Receipt Day’s Supply on Today = Coverage’s Considering the receipts = 5 – 1 + (6/40) = 4 + 0.

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