MRP Group

1. The MRP group is an organizational object that can be used to allocate special control parameters for
planning to a group of materials.

2. You can maintain MRP groups if planning control per plant is not precise enough for your requirements

3. if you want to allocate certain material groups different control parameters from the plant parameters.

For this above purpose, MRP groups are defined with these specific control parameters and are assigned to the
material in the material master record (MRP 1 screen).

For example, the following control parameters can be set for the total planning run:

1. the creation indicator for the planning run (creation of purchase requisitions, MRP lists, and so on)

2. the planning horizon

3. the consumption mode

4. The following is valid for total planning and single-item planning:

5. for all materials without an MRP group, the system uses the plant parameters, or the entries in the initial
screen of the planning run

6. for all materials with an MRP group, the system uses the parameters recorded in the MRP group

1- Define MRP Groups for each Material Type

SPRO --> MM --> Consumption based planning --> Define MRP group.

2- Define Number ranges for planning run

SPRO --> Materials Management > Consumption Based Planning > Number Ranges --> Define Number Ranges for
Planning Run

3- Define MRP Groups for each Material Type

SPRO -->Materials Management > Consumption Based Planning > MRP Groups --> Define MRP Groups for each
Material type
T code : OMIG for define the mrp groups

Tcode :OMI2 for the no ranges

Purchasing Group.

the purchasing group is always taken from MMR material purhcasing group..which is maintained for MRP....and
document type is taken from OMTT tcode..pls check...

Most of the time doc type is NB ie. std type...

A purchasing group is a key for a buyer or group of buyers in SAP ERP. It is responsible for the
procurement of a material or class of materials, and is the principal channel for a company's dealings with
its suppliers.

Transaction code OME4

SAP Menu Path SPRO > IMG > Enterprise Structure > Definition > Material Management > Purchase Group.
ABC Indicator

ABC indicator is stored in MARC-MAABC. Whereas CC. Phy.Inv. Indicator is stored in MARC-ABCIN. These are
two different fields. However sometimes "CC. Phy.Inv. Indicator" is referred to as ABC classification for cycle
counting. Hence the confusion. Still, the fields are used for different purposes.

CC. Phy.Inv. Indicator is used to drive physical inventory cycle counting, to tell how often you want / need to
count materials with specific indicator. The indicator can be maintained automatically with the MIBC transaction.

In contrast ABC indicator is a classification / selection field that divides your materials into e.g. very important /
important / not so important groups.

You can define any values for the ABC indicator you need. However, you'd better stay with default setting of A, B
and C. This way you can use automatic classification of materials by:

 either usage - the transaction MC40

 or requirements - the transaction MC41.

The ABC indicator is one of the most important selection criterion for MRP list, stock/requirements list, logistics
reporting, i.e. transactions like MD06, MD07, MC50 etc.

MRP Type-

Direct T. code to configure MRP type is OMDQ.

SAP MRP type is a field that is maintained in the material master MRP 1 view under MRP procedure data.
This is a key which is used to regulate the material requirements planning. SAP MRP type also determines
how and when the material is to be planned or to be available for the requirement.

MRP type PD means the material will be considered by MRP run for planning and trigger the Procurement
Proposals after Net reqt calculations.

Request you to go thru the below info on MRP :

Material Requirements Planning (PP-MRP)

Implementation Options

The main function of material requirements planning is to guarantee material availability, that is, it is used to
procure or produce the requirement quantities on time both for internal purposes and for sales and distribution.
This process involves the monitoring of stocks and, in particular, the automatic creation of procurement
proposals for purchasing and production.

In doing so, MRP tries to strike the best balance possible between

optimizing the service level and

minimizing costs and capital lockup.

The MRP component (PP-MRP) assists and relieves MRP controllers in their area of responsibility. The MRP
controller is responsible for all activities related to specifying the type, quantity, and time of the requirements, in
addition to calculating when and for what quantity an order proposal has to be created to cover these
requirements. The MRP controller needs all the information on stocks, stock reservations, and stocks on order to
calculate quantities, and also needs information on lead times and procurement times to calculate dates. The
MRP controller defines a suitable MRP and lot-sizing procedure for each material to determine procurement
proposals.

Integration
You must first create the master data to be able to work with the MRP component. To do this, you require the
following components:

material master (LO-MD-MM)

bills of material (LO-MD-BOM)

When you use MRP for in-house production, you also need the following components if you want to determine
production dates:

work center (PP-BD-WKC)

routings (PP-BD-RTG)

You also need the following components:

demand management (PP-MD-DEM)

You need the Demand Management component to define requirement quantities and requirements dates for
finished products and important assemblies. Demand Management also determines the strategy you are to use
for planning, procuring, or producing a certain finished product.

sales and distribution, if necessary

Features

MRP at Plant or MRP Area Level

You can plan material requirements at plant level or for different MRP areas. With MRP at plant level, the system
adds together stocks from all of the individual storage locations, with the exception of individual customer stock,
to determine total plant stock. The requirements are combined in the planning run and procurement elements are
created for these pegged requirements with unknown sources. Individual storage locations can be planned
separately or be excluded from planning.

In the case of material requirements planning on an MRP area level, only the stocks from the storage locations
or subcontractor assigned to the respective MRP area are taken into account. Only the requirements in this MRP
area are combined and procurement elements are created for them. This enables you to plan material
requirements specifically for certain areas.

Lot-Sizing and MRP Procedures

The most common lot-sizing procedures are available in the system and you can easily integrate user-defined
formulas.

You can use MRP or consumption-based planning as the materials planning procedure.

Automatic Planning Run

The automatic planning run in MRP determines any shortages and creates the appropriate procurement
elements. The system generates messages for critical parts and unusual situations so that you can rework the
planning results in the specific area with problems.

Time Phased Planning

Time-phased planning is an MRP procedure where the materials are planned in a
particular time interval. If for example, a vendor always delivers a material on a certain
weekday, then it makes sense to plan this material according to the same cycle,
adjusted to the delivery date.
To plan a material with time-phased planning, it is a must that the MRP Type shall be
entered in the material master record for time-phased planning and the planning cycle.
The latter is defined in the form of a planning calendar in the Planning Cycle field.
For time-phased planning materials, the planning file entries NETCH and NETPL in the
planning file are not important, so are not set for MRP changes. Materials that are
planned according to a time-phase are provided with an MRP date in the planning file.
This date is reset on the creation of a new material master data, and then after every
planning run. This date corresponds to the day that the material will next be planned; it
is calculated on the basis of the planning cycle specified in the material master. The
material will only be planned on the days that have been specified by the planning
cycle. Noted that to have control of this procedure and plan a material before the
intended MRP date, it is possible to specify a MRP date in the planning run. For
example, if the MRP run is planned for Monday, it is probable to execute the run for
Monday on Saturday.

The lot-sizing procedure for a time-phased planning material is the exact lot size, so
optimizing lot-sizing procedures can also be applicable for time-phased planning.
Triggering Planning Run
When the planning run is triggered, the system uses the MRP date in the planning file
to check whether the materials are to be planned. The MRP date is calculated from the
planning cycle. The system calculates the requirement. It also determines a time
interval according to the following algorithm:
MRP date + planning cycle + purchasing processing time + planned delivery time +
goods receipt processing time.
The system compares the forecast requirement in this time interval with the stock and
both the fixed and firm receipts in this time interval. It then calculates the quantity to be
ordered. During calculation, the system assumes that the fixed receipts lie at certain
intervals. It does not matter whether the fixed receipts are available at the start or at the
end of the interval. This means that there may be a temporary shortage.
Noted that Time-phased planning can be combined with a reorder point. The material is
not only planned on the MRP date in the planning file, but also when the reorder point is
fallen short of due to a good issue. If the reorder point has a shortage, the material is
flagged for planning, as is the planning cycle. During requirements calculation, the
system creates a time interval that spans from the time of the reorder point shortage to
the availability date of the next regular MRP date. For this time interval, the ordered
quantity must suffice. On the next MRP date, the material is again planned at regular
intervals.

SAP Reorder Point Planning

As the name indicates, SAP Consumption Based Planning (or CBP) has procedures that are
based on information about previous material consumption or the historical data. The MRP
procedures that come under consumption based planning are:

 Reorder point planning

 Forecast-based planning
 Time-phased planning

The material requirements planning takes place at plant level. The entire stock on the plant is
considered for planning irrespective of storage locations. In this tutorial, we will discuss SAP
reorder point planning. The reorder point planning consists of two procedures:

1. Manual reorder point

2. Automatic reorder point planning

In SAP reorder point planning, a reorder point is obtained by calculating a sum of plant stock and
firmed receipts. When the stock level falls below the reorder point, a procurement proposal is
triggered. The following parameters are important when considering the reorder point:

 safety stock
 average consumption
 replenishment lead time
In manual reorder point planning, both the reorder point and safety stock are maintained manually
in the MRP 1 view of a material master record. In automatic reorder point planning, the reorder
level and safety stock are calculated automatically by the forecasting program.

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How to Use SAP Reorder Point Planning

To setup SAP reorder point planning, there have to be settings made at the material master level
in MRP views. MRP 1 and MRP 2 views contain fields that are considered for SAP reorder point
planning.

 MRP 1 View: MRP type, Reorder Point, Lot Size

 MRP 2 View: Safety Stock

Here is what these fields mean:

MRP type: VB – Manual reorder point planning; VM – Automatic reorder point planning

Reorder point: A stock value has to be entered in this reorder point field

Lot size: For our illustration, let us maintain “HB – Replenish to maximum stock level”. If we
maintain HB, then the maximum stock level field has also to be maintained.

SAP
Material Master – MRP 1 View

For manual reorder point planning, the MRP type has to be maintained as “VB”. When we enter
VB as MRP type, then SAP system would display a message telling us to maintain the reorder
point. The reorder point has to be maintained in the specified field.

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Then, the lot size plays an important role in procurement proposal. Lot size defines the quantity of
the order that has to be placed. In our example, the lot size is maintained as HB – replenish to
maximum stock level, so the maximum stock level field has also to be populated with the required
stock value. The system will then create orders to replenish stock up to this maximum level.

SAP
Material Master – MRP 2 View

In MRP 2 view, the safety stock field has to be populated. Safety stock is the minimum stock level
that is acceptable for a material. It is defined by business requirements. Now, let us view this
material in stock/requirements list transaction (MD03).

Stock/
Requirements List – Safety Stock

In the above figure, the stock/requirements list is shown. The available stock level is 0.000 at plant
level. The safety stock for this material is 100.000 which is also shown. Let us now run MRP at
plant level for this material.
 Transac
tion MD03 – MRP Run at Plant Level

Transac
tion MD04 – Stock/Requirement List – Safety Stock and Purchase Requsition

The stock/requirement list shown above now contains two lines with the safety stock and a
purchase requisition. As the stock level has fallen below the reorder point, when the MRP run was
carried out, the system triggers procurement proposal as a purchase requisition. When you look at
the image, the purchase requisition quantity is 300, which is the maximum stock level maintained
at MRP 1 view of the material master record. This purchase requisition would then be converted to
a purchase order by the procurement department When we place a purchase requisition, the
expected quantity would first be kept as safety stock, and then the stock would be kept as
available stock.
Automatic Re order point

in Automatic reorder point planning, the reorder point and the safty stock are automatically calculated by the
system based on forecasting

The system uses past consumption data (historical data) to forecast future requirements. The system then uses
these forecast values to calculate the reorder level and the safety stock level, taking the service level, which is
specified in MRP2 view, and the material's replenishment lead time into account, and transfers them to the
material master.

Since the forecast is carried out at regular intervals, the reorder level and the safety stock level are continually
adapted to the current consumption and delivery situation. This means that a contribution is made towards
keeping stock levels low.

if you increase the service level then Safety stock also will be more.

SAP Consumption-Based Planning

CBP is an integral part of SAP Material Management, and it is managed through the below path in
SPRO transaction:

SPRO → SAP Consumption-Based Planning → Implementation Customization guide → Material

Management → Consumption-Based planning

Under CBP, there are three planning procedures defined to implement it:

SAP
Consumption-Based Planning Procedures

Each CBP type is assigned to one of three procedures available in SAP.

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This field is available in the MRP1 view of the material master.

 ND – No planning. If the material does not come under the category of the MRP cycle, procurement of
this material will be done through manual PR and PO creation.
 R1 – It is used for time-phased planning.
 VB – Manual re-order point planning.
 VV – Forecast-based planning.

Let’s go through the detailed process of these three procedures.

Reorder-Point Planning in SAP Consumption-Based Planning

This procedure works for material and plant combinations. The re-order planning can be done in
two ways:

MANUAL RE-ORDER POINT – MRP TYPE VB

In this procedure, the stock levels are calculated manually and the specific stock data is entered
into the system, and then the system will create the purchase requisitions based on the saved
data.

AUTOMATIC RE-ORDER POINT – MRP TYPE VM

An integrated forecast program is executed frequently, and the system updates the consumption
and delivery patterns for material to determine the procurement needs.

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In MRP1 view of the material master, the below fields are required to activate the re-order point
planning:

 Re-order point: The lowest stock count is always available in manufacturing to run the operations
efficiently. Once the quantity falls lower than this level, the system automatically creates a purchase
requisition.
 Safety Stock: It is the desired stock level to be kept in inventory to avoid material dearth.
 Maximum stock level:  It is the maximum stock we can procure for a material at a given time.
 Lot Size: It defines how the system will calculate the batch quantity for which a single purchase
order/planned order or production order is created at once. It could be dynamic, fixed, up to a maximum
stock level, or as per the posting period or planning calendar.
 Minimum Lot Size: It defines the minimum lot quantity which needs to be generated.
 Maximum lot size: It defines the maximum lot size which should not be exceeded.

Points to be Noted:

1. Re-order point considers the existing stock for material and plant combination, along with open
purchase orders, safety stock, production orders, issuance/returns, lead procurement time, or firmed
goods receipts.
2. If further goods receipt is not required in case of returns, then the system will propose to cancel the
upcoming GRs.

Forecast-Based Planning (FBP)

Unlike the above method of re-order point, this MRP procedure calculates the future requirements
for a material based on past consumption data, and the forecasting program is used to produce
the exact material requirements. A program is executed at regular intervals to adjust the
consumption patterns and manage the requirements as per current needs.
After analyzing the requirements, the SAP forms a pattern that falls into the models shown below:

 Constant model: the business has a constant pattern of consumption.

 Trend Model: the increase in consumption for a specific period due to high business volume.
 Seasonal Model: the high consumption for a particular period.
 Trend Seasonal model: due to high seasonal business, the consumption pattern is high.

PERIOD PATTERN FOR FBP

Here, we can define the two points period outlines and periods to be included in the forecast
program.

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The period outline could be in weeks, months, days, or as per the posting period. It is mandatory to
mention several periods to be considered for forecasting.

For instance, in the case of monthly forecasting planning, the starting set should be the first
workday of the month to get the exact requirement on the initial day of the month for better
planning.

Time-Phased Planning in SAP CBP

This plan is helpful if order day and delivery are fixed for material from a vendor. For instance,
Monday is the order day for which will be received on Wednesday, and orders created on
Thursday will not receive delivery until next Monday.

An MRP date is set in the system, which is set during material master creation, and it is returned to
this date after every MRP run.

USAGE OF COVERAGE PROFILE RANGE IN TIME-PHASED PROFILE

Safety stock is calculated based on daily consumption, and this is maintained under the MRP2
view.

Let’s take an example to explain the concept of coverage profile range:

In the material master, the planned days’ field contains the value 3 which is in days, and deliveries
are planned only on Thursdays. While calculating the final requirements, the system uses these 3
days as the interval between dates that are the current MRP date and the next MRP run date.

In this case, the interval starts on Thursday and ends on Saturday of the preceding week, including
eight working days.

In the below data, the basic UOM of material is considered as “NOS” – Numbers.

Minimum Coverage Range 5 Days

 Minimum Safety Stock 20 Nos

Target Range Date 7 Days

Target Safety Stock 200 Nos

Maximum Coverage Range 12 days

Maximum Safety Stock 300 Nos

 No coverage range defined:

In the case of zero stock units and no goods receipts, the system will generate the requirements of

220 NOS from the forecast.
 When coverage range is maintained:
 If the current stock is zero, the system will add another 200 NOS as the required quantity, which must
cover the next 7 days.
 If the current stock is 200 NOS, the system will generate a procurement plan of 20 NOS, and then the
remaining 40 pieces would only cover the next two days. The system takes up to target stock level in
case of minimum safety stock level is not fulfilled.

The consumption-based planning run does not consider blocked stock in any case.

Final Thoughts
SAP Consumption-Based Planning is designed to manage the material quantities and stock levels
strategically with the least manual intervention and be available in both ways, either manually or
automatically. The only requirement is to maintain the correct material master to pull the right
quantities in planned orders or requisitions through CBP. Specifically, in reorder point level
planning, the wrong minimum and maximum stock levels can delay deliveries.

Reorder Point, Order Point

It is used in Ordering Point System (also called Fixed Size Ordering System), an inventory control method, and refers to the
stock quantity to prompt the order to be released. Reorder Point is also called ROP for short, and Order Point is called OP
for short, too. The Reorder Point can be obtained by summing the Safety Stock Quantity to the quantity consumed during
the purchased lead time (the period of time taken from releasing an order to receiving the ordered item). The Safety Stock
Quantity can be obtained by t√Ls (in which L: purchased lead time, t: safety factor, and s: standard deviation).

What is the meaning of planning time fence and where it is used?

Answer:

Planning Time Fence :

You can protect procurement proposals from any automatic changes to master schedule items in the near future by
using the planning time fence.

This to avoid the disturbance of Production Plan by Incoming Sales Order. However we can change the Plan
Manually.

PTF(Planning time Fence) is effective with Proper MRP Type Say P1, P2, P3, P4

Setting in MRP-1 view of material master.

Within the planning time fence, the system does not automatically change procurement proposals during the
planning run. That is particularly useful for MPS. You can define the planning time fence either material-specific or
per MRP group. The material-specific setting overwrites the MRP group setting.

All procurement proposal types are firmed within the planning time fence:

- Planned orders

- Purchase requisitions

- Delivery schedules (schedule lines).

Please note system will create 3 planned orders.

Suppose that planning time fence is Ex. 25 days. From the date of MRP run, system will consider the planning time
fence as 25 days onward.

Planning time fence is this time period in which system will not disturb the current plannng situation.Only manual
changes are allowed.

Deciding no days in planning time fence , you have to take into consideration of normally your production cycle time.

How do we decide the number of days for planning time fence. Is there a rule of thumb?

Deciding no. days in planning time fence, you have to take into consideration of normally your production cycle time.

So that once if you start the production , there will not be any disturbance to your orders.

Fence is the boundary with in which you don't want the system to change any elements when you run MRP.

Rule is purely your business call. As per your business how many days from today you don't want to change the
production plan, if changed will cost you very high cost or non desirable products(scrap).

Hence, you need to discuss with business so that when you run MRP, system will not change the production planned
order.

Time-Phased Planning in SAP

121223,924
          We come across specific business requirements where in a vendor delivers the component concerned only on specific
day/s and it makes sense to plan the component accordingly based on the delivery pattern. Time-Phased Planning (TPP
henceforth) steps in here to accomplish this.

          Contrasted with MRP, TPP will not consider the entire horizon during which the dependent requirement exist for the
component and thus differs from conventional MRP which plans for entire horizon. Needless to say the Netchange
indicators are relevant only for MRP and not TPP. In technical parlance, Time-Phased planning delays release of
procurement proposals for components until they are actually needed and offsets the requirements by the lead time
concerned.

Where does TPP fit in the planning procedure scheme of things?

   Core ERP/ECC supports 3 types of planning procedures:

1. Master Production Scheduling (MPS)

2. Materials Requirement Planning (MRP)

3. Consumption Based Planning (CBP)

CBP is again divided into:

1. Reorder Point Planning (ROP)

2. Forecast-based planning (FBP) and

3. Time phased planning (TPP)

Even though TPP is ‘functionally’ placed under CBP by design/default we can utilise it with the MRP planning procedure
after making changes relevant to the MRP type we use. Meaning to make use of TPP with MRP we would definitely need a
customised MRP type.

In SAP standard,

MPS items have a MRP type beginning with M*  (M0/M1/M2/M3/M4)

MRP items have a MRP type beginning with P* (PD/P1/P2/P3/P4)

ROP and FBP items have MRP type beginning with V* (VM/V2/VB/V1/VV)

TPP items have MRP type starting with R* (R1/R2/VS)

All remaining types are for Retail-relevant functionalities (RE/RF/FP/RR/RS/VI).

Other two MRP types are X0 and ND making the total MRP types in standard as 26.

And obviously the disadvantage of TPP is you will not find it attractive if you have dual sourcing in place for the same
component. Delivery from two vendors supplying the same component may vary and can be on different work days of the
week. In such a case in the core ECC version we do not have the option to enter specific delivery pattern as we can enter
only one delivery option/calendar at the material/plant level. This issue of vendor specific calendars per material is taken
care of in the retail system which has specific MRP types to meet the requirement.

Even though the MPS/MRP and even ROP functionalities are available in massively enhanced forms in advanced planning
systems like APO, we however do not have an alternative to TPP elsewhere for that matter, making TPP as ECC-specific.

For this discussion, we will see a basic scenario of TPP with MRP. For this purpose we have created a customised MRP
type Z9.(Details as below).

FERT11 is the Assembly and ROH11 is the BOM component/dependent requirement associated.
ROH11 is assigned to MRP type Z9 that supports TPP and makes it mandatory to use a Planning cycle (CL1 in our case).
Also we can use a delivery cycle (CL2 in our discussion) created as per our requirement, in MRP2 view. Note that Planning
cycle is mandatory in TPP, where as it is optional to use Delivery cycle depending on our business requirement.

Even though the name appears as Planning calendar in MRP2 view it actually refers to the delivery period as below.

Customized MRP type Z9 has been created to ensure that it works in conjunction with MRP.

(The indicator Time-phased with Reqs ensures that the MRP type works with MRP procedure else if unchecked it can work
only with CBP procedure with the appropriate settings).
CL1 Planning calendar details:

Planning for the material will happen only on Mondays and Wednesdays of every week.
CL2 Delivery calendar details:

Delivery for the material will happen only on Tuesdays and Thursdays of the week only.
We will load some planned independent requirement for FERT11 and run MRP.

When we run Single item multi-level MRP by default it plans for all levels below.

We have loaded a demand of 50 numbers split across 4 days.

MD02: Single-Item Multi-level planning

We have set the parameters to display the results of planning run before they are saved.

In the subsequent run we see the results for FERT11.

After saving the data the planning run gets completed with out planning for ROH11.

(The planning run today as per the demo is Monday the 14th Nov’11 again).

This is expected as the TPP items are not planned against the higher assembly but independently. It should be noted that the
dep reqmts are already inherited by the TPP items after a planning run for higher level assemblies.

In a typical business scenario we actually would be running Total planning/MD01/MDBT for the plant and this material will
be automatically planned on a Monday or a Wednesday as the case is.

When TPP is used (as per the MRP type) the system writes down the ‘Planning date’ for the material concerned in what we
call as the Planning File entry (PFE) as in MD21 txn.

For MRP type PD materials this field is not populated and remains blank and this field is specific for TPP only.

Note: The planning date is proposed based on the planning cycle CL1 in the material master. This can be changed as per the
requirement and planning executed on Non-planning dates also using MD20 again.

Now execute Single-item single-level planning for ROH11 using MD03 txn.
Planning results are as follows:

After the planning run is completed the next planning date is reset to the ensuing planning date which is the Thursday (16th
Nov’11 in our case) as per CL1 calendar.

Explanation of results for ROH11:

Planned delivery time is 18 days as in material master.

[Also the MRP4 view Ind/Collective requirements is set as 2 (Collective reqmts only). So system will club all related
requirements/demand while creating a procurement proposal. Here the system has clubbed the first 3 requirements and
created a PReq for 37 numbers.]

What system does during TPP?

It creates a planning time/horizon which is equal to

Planning date + Purchasing Processing time + Planned Delivery time + GR Processing time to identify the demand it has to
satisfy.

In our case, Purchasing Processing time and GR Processing time are zero and so from today the system calculates 18
calendar days which is 2nd Dec’11 and tries to satisfy the demand with in the horizon. Outside of it the demand for 12th
Dec’11, we see that it is not considered.

Because delivery can happen only on a Tuesday or Thursday the system has created the Pur Req for 6th Dec’11 (Tuesday)
which is the next possible delivery date.(and not on 2nd Dec’11).

Let us now change the Planned Delivery Time as 23 days now and check the results.

Initially the planning date was 14th Nov’11 and had later moved to 16th Nov’11.

We will run MRP again with Planning date as 16th Nov’11 now.

So calculation will be based on Planning date as 16th Nov’11 running through 23 days which is 9th Dec’11 which is a
Friday and hence it will consider a delivery for Dec13th, 2011 and also include the last dep reqmnt for FERT11 also and
create a PurReq for 50 numbers instead of the existing 37 numbers.

Execute MD03 –Single-Item Single-level:

Results are as expected:

 Configure MRP type OMDQ

Configure MRP Controller OMD0

MRP Controller
Technical name: SAP_BW_0ROLE_0061

Task Area
The MRP controller is responsible for material requirements planning and material
availability.
They ensure that the materials required to manufacture finished products or superior
assemblies are available on time. They evaluate the material requirements planning
that generates receipts (order proposals) for customer requirements and the planned
independent requirements of the finished products. As a result of these receipts,
secondary requirements are created for the subordinate assembly or materials that
must in turn be covered by receipts.
Depending on the company structure, the MRP controller can be responsible for the
material availability for the entire production chain of a product as well as for the
material availability of certain production levels.
They can use key figures such as range of coverage and exception messages to help
them complete their tasks.
The MRP controller's tasks include:
 Executing and monitoring material requirements planning
 Converting order proposals
 Monitoring stocks and range of coverage
Structure
Tasks in the Business Information Warehouse
The MRP controller monitors stocks, carries out order and material analyses, operation
and work center analyses, as well as quality analyses. To accomplish these tasks, BW
provides Business Content information in the form of workbooks. Each task
corresponds to a cluster of one or more workbooks. The workbooks contain one or
more queries that yield the relevant information. The tasks (clusters) are logically
grouped together into task areas (subchannels). The following workbooks are available
for the MRP controller:

Configure lot Size - OMI4

lot for lot order

When planning using lot-for-lot order quantity, the system uses the exact shortage quantity (requirement minus
available stock) as the order quantity in the case of a material shortage. At the time of the requirements date, the
planned plant stock is zero. Planning is carried out daily.

Dynamic Lot Size Creation

Prerequisites
In the material master ( MRP 1 view) for the material, you have set the indicator
for DY for Dynamic lot size creation in the Lot size field and the Lot size independent
costs and storage costs indicator .

Features
Starting from the shortage date, successive requirements are grouped together to form lots
until additional storage costs become greater than lot size independent costs .

Example
Price: $ 20

Lot size independent costs: $ 100

Storage cost percentage: 10 %

 The most appropriate lot size is 3000 pieces because an additional requirement of 1000 pieces for
the 27 July would mean that the lot size independent costs would be exceeded.

Lot Sizes with Splitting and Overlapping

Use
You can determine whether a fixed or period lot size is divided into partial quantities and that these are to be produced at regular
intervals that overlap each other.
This lot-sizing procedure is very useful if the actual requirement quantities that occur in the period or the quantity to be produced for
a certain date are very large but production is only laid out for smaller quantities.

Integration
 Caution
Splitting and overlapping are only possible for fixed lot sizes and period lot sizes.

Prerequisites
 In Customizing for MRP, you must determine in the IMG activity Check lot-sizing procedure whether the procurement proposals
are to overlap in the future or in the past starting from the requirements date:
Fixed Lot Size with Splitting and Overlapping
 You have maintained the following fields in the material master ( MRP 1 view):
 Lot size field : FS indicator for fixed lot size with splitting and overlapping
 Fixed lot size field : total order quantity
 Rounding value field: Partial quantities, into which the total quantity is grouped. The fixed lot size must be a multiple of the
rounding value.
 Takt time field: The period of time that the procurement proposals are to overlap.
Period Lot Size with Splitting and Overlapping
 You have maintained the following fields in the material master ( MRP 1 view):
 Lot size field : FS indicator for period lot size with splitting and overlapping
 Maximum lot size field: Partial quantities, into which the total quantity is grouped.
 Takt time field: The period of time that the procurement proposals are to overlap.
Features
The system generates procurement proposals for the rounding value until the fixed lot size quantity has been reached. The in-
house production times overlap by the takt time.

Fixed Order Quantity

Hi,

Fixed lot size - 100 means for every 100 quantity system will create one purchase document.

If you selected Lot size - FX - Fixed order quantity , then no need to maintain Minimum lot size & Maximum lot
size fields.

Then you have to maintain Fixed lot size filed only.

Ex:

Lot size = FX

Fixed lot size = 100

There is a requirement of 300. Then system will create 3 PO's with quantity of 100 each.

If Lot size is Ex - Lot-for-lot order quantity, then only need to maintain Minimum lot size & Maximum lot size fields
in the MRP 1 view.

Ex: Lot size = EX

Minimum lot size = 60

Maximum lot size = 100

There is a requirement of 250. Then system will create 3 purchase documents, two documents with the quantity
of 100 and third one with the quantity of 60.

That's why, in your case system is reseting Minimum lot size every time.

If you want to maintain Minimum lot size, then maintain

Lot size as EX

Minimum lot size = 100

MRP Monthly lot size

Appreciated if some guide can be provided.
MRP lot size has been set to MB (Monthly lot size)

It is known that with this setting, material are always bring in on the first working day
of the month.
Ex: Dep requirement 26-10-04 100 pcs
Dep requirement 30-10-04 190 pcs

When MRP completion, the PR item shown 1-10-2004 290 pcs, is that any possible to
bring in material just right before dependant requirement 26-10-04 say about 24 or
25 of the month.
Because. we dont tend to keep more stocks until actual requirement.

Any comment are welcome.

In that case you might like to consider lot size key WB (weekly). It will bring in
material at the first working day of the week. In your case it is Oct 25, 2004

But in this case, I will have increase administrative cost on monitoring the material lot
weekly.
I want to have monthly lot size that group all the requirement, but bring in material
as close as possible on the first requirement.
Any comment are welcome..

How about manually change delivery date in PO item

Check your config. in OMI4 - scheduling may by ''1'" for Lot size of MB.
Change to Blank.

Friend PPS is correct, Schedule the "REQUIREMENTS DATE = DELIVERY DATE" option
in Customizing for Lot Size MB (use Blank instead of 1) & your reqt 'll be met...

We have similar problem and when I applied your solution, the proposed requirement
date is perfect.

Maximum Lot Size 

Definition

Maximum procurement quantity of a receipt.

Use

If you define a maximum lot size, the system can only create receipts with a
procurement quantity that does not exceed the maximum lot size. To cover a
requirement whose requirements quantity (for in-house production plus assembly scrap)
exceeds the maximum lot size, the system must create several receipts accordingly.

You can use the maximum lot size for the following standard lot-sizing procedures:

        Lot-for-lot order quantity

        Period lot-sizing procedure
        Reorder point method
In addition, some heuristics consider the maximum lot size. The minimum lot size
is not relevant for manually creating a receipt; in this case, the system always creates a
receipt with the required yield.

Example

You have defined a maximum lot size of 100 pieces and an assembly scrap of 20% for
a product produced in-house. To cover an uncovered requirement of 200 pieces, 250
pieces must be produced altogether, taking the assembly scrap into account. Due to
the maximum lot size of 100 pieces, the system creates two receipts with a
procurement quantity of 100 pieces each (corresponding to a yield of 80 pieces each)
and a further receipt with a procurement quantity of 50 pieces (corresponding to a yield
of 40 pieces).

TAKT Time
If a requirement quantity cannot be procured in a single lot because of Lot size, you have to do the several
receipts.

In the customizing of the lot size with the overlap indicator, you can use the takt time to specify that these
receipts are delayed by the takt time.

The system uses the takt time if a requirement is covered by several receipt due to restrictions on lot size such
as maximum lot size.

You can use Rounding profile for the same.

As per your std validated batch size or Lot size prepare Rounding Profile in such a way that system only propose
Lot size as per your difene lot sizes.

For this first you have to define your minimum and maximum lot size limit in Material master MRP - 1 view.

Then Create Rounding Profile using T. Code OWD1.

I am giving you one example.

Plant Rounding Prof Thresold Value Rounding Value

XXXX Comp. M/C 1 1 10000

9990 150000

145000 165000

Now my minimum lot size is 10000 while Maximum is 165000.

Now if my PIR or Sales qorder qty is is 50000 then after running MRP systemn will propose Planned order as per
below

Plan order 1 165000

Plan order 2 165000

Plan order 3 150000

And if if requirement is only 8500 then system will create plan order for 10000 nos only.

or

Second option is you have to create different Production versions for different lot sizes.So that during MRP/MPS
run system finds the neares production version to that order qty.

In Production order type T.Code COR4 you can set manual selcetion of Production version.But it only works
during Manual Process order creation.

But I think Better way is go with Rounding profile.

Rounding Profile

Use
You use a rounding profile if you want to round the procurement quantity up to quantities, which can be delivered or transported.

Prerequisites
You have assigned a rounding profile to the material in the Rounding profile field in the material master ( MRP 1 view).

 Note
You define rounding profiles in Customizing for MRP in the IMG activity Define rounding profiles .

Features
A rounding profile consists of threshold and rounding values, whereby every threshold value is assigned a rounding value. If the
requirement lies below the first threshold value, the system copies the original requirement value unchanged. If the requirement
exceeds the first threshold value, the system always rounds up.

Example
A material’s base unit of measure is 1 piece. The material is to be transported in layers (one layer corresponds to 5 pieces) or in
pallets (one pallet corresponds to 8 layers which corresponds to 40 pieces).
You have defined the following rounding profile in Customizing:
 2   5   32   40 
From a requirement of 2 pieces, the system rounds up to 5 pieces, from a requirement of 32 pieces, it rounds up to 40 pieces.
The system then calculates the procurement quantities as follows:
Requirement Procurement quantity

1 1

2 5

6 10

7 10

21 25

31 35
 32 40

41 45

74 80
 For a requirement of 7 pieces, the system checks how many times 5 fits into 7. This results in a procurement quantity of 5
pieces (1x5 = 5). The system rounds up the remaining 2 pieces to 5 pieces. Thus, for a requirement of 7 pieces, one
procurement proposal is created for 10 pieces.
 For a requirement of 74 pieces, the system checks how many times 40 in fits into 74. This results in a procurement quantity of
40 pieces (1x40 = 40). The system rounds up the remaining 34 pieces to 40 pieces. Thus, for a requirement of 74 pieces, a
procurement proposal is created for 80 pieces.

Rounding Profile using T. Code OWD1.

As per SAP documentation:

Rounding value for purchase order quantity

Value to a multiple of which the system rounds up the procurement quantity.

Dependencies

The rounding value is used in the planning run if no rounding profile has been specified in the material master
record.

Rounding profile

Key that the system uses to adjust the order proposal quantity to deliverable units.

Procedure

In Customizing, enter a threshold value from which the system should round up to the next value per deliverable
unit:

If the requirements value exceeds the first threshold value, the system always rounds up to the next multiple of
the level found

If the requirements value falls below the first threshold value, the system copies the original requirements value.

Two other types of rounding exist:

Dynamic rounding profile:

These profiles are used to round up quantities to logistical units of measure (for example, layers). The contents
of a logistical unit of measure does not have to be know when creating the rounding profile. It is determined by
the master data from the material master.

Rounding profile with quantity to be added/subtracted

With these profiles, the given quantity is changed either by adding a percentage or subtracting a percentage.

Only static rounding profiles are taken into account in requirements planning. Neither dynamic rounding profiles
not quantity addition/ subtraction are taken into account.

Examples
A material's base unit of measure is 1 unit; the purchase order is to be delivered in layers (1 layer corresponds to
5 units) or in pallets (1 pallet corresponds to 8 layers which contains 40 units).

You maintain the profile as follows:

From a requirements of 2 units, the system is to round up to 5; from a requirement of 32 units, the system is to
round up to 40.

This results in the following order proposal quantities:

Requirement from 1 -> 1 requirement from 31 -> 30

Requirement from 2 -> 5 requirement from 32 -> 40

Requirement from 6 -> 10 requirement from 74 -> 80

Requirement from 7 -> 10

Dependencies

If no rounding profile has been entered, the system uses the rounding value entered in the material master
record for the planning run.