MRP Process by considering Quota, Source list, Batches, Auto PO

“MRP (Material Requirement Planning) is used to procure or produce the required material
quantities on time for in-house purpose or for fulfilling customer demands. In manufacturing,
the function of MRP is to guarantee material availability on time. The main objective is to plan
the supply based on requirements and considering the current stock in hand and meet the
shortages.”

Creation of Material (MM01)

Classification view

I have maintained
class of batch here.

Purchasing View

Here we can see I have checked batch

management, source list, and Quota
arrangement usage, and batch management
MRP Type

1) PD- If material requirement is like a routine in day of every week then this MRP type is selected.

2) ND-No Planning.

3) VB- Manual Reorder Point Planning. Both the reorder level and the safety stock level are defined
manually in the appropriate material master.

4) VM- Automatic Reorder Point Planning. The integrated forecasting program determine the both the
reorder level and safety stock level. Historical or past consumptions data are used by the system to
predefine future requirement. The forecast values are used by the system to work out reorder level and
safety stock level.

MRP with manual reorder point

planning so I have enter reorder point as
100 below this order will be created
MRP 2
MRP 2 views maintain Procurement type, Special Procurement, Scheduling, Net requirement calculation
safety stock.
1) Procurement
E-In-house Production
F-External Procurement
X-Both Production

I have created this for

external procurement

If we have maintained safety stock then

MRP creates planned order when system
stock fall below safety stock level.

Maintain Source List

Here I have maintained source

of supply fixed this vendor.
Maintain quota arrangement for material 200170
T-CODE: MEQ1

Here I have maintained two

vendor and allocated different
quota in ratios of 60:40

Stock Overview (MMBE)

Here we can see no stock is

available for this material so
once we done MRP run order
will create automatically.
MRP run
T-CODE: MD03

Here I have we can select whether

purchase requisition create
manually or after planned order.

Display Stock Requirement

T-CODE: MD04

Here we can see as per we have set reorder

point as 100 and we have zero stock
system automatically created planned
order for 100 quantity.
 Here we can see that once I try to
convert planned order to PR on this
screen system automatically took
vendor 101046 however we I have
fixed vendor 101048 in source list
from this we can conclude that
Quota has highest priority.

MD04
AUTO PO from Purchase Requisition

T-CODE: ME59N

As I have maintained
batch management for
this material system
created batch here.

Thanks & Regards,

Akash Hiwale
E:akashhiwale20@gmail.com