How does MRP run on SAP?

Siswandi
Principal Consultant
27 Jul 2020
Agenda

 What is function of MRP

 What are the benefits if you activate MRP into your system

 Parameters that will affect MRP result

 How to activate MRP in your company

 Q&A
Agenda

 What is function of MRP

 What are the benefits if you activate MRP into your system

 Parameters that will affect MRP result

 How to activate MRP in your company

 Q&A
MRP, MRP-II, ERP

Mid 1960’s: A researcher at IBM coined the term MRP in a

research paper. He documented a simple model to allow for
just-in-time inventory.

Mid 1980’s: The term MRP II was popularized by Oliver Wight.

MRP II was developed to expand upon MRP I, providing
additional functionalities including finances and general
accounting, demand forecasting for inventory requirements,
machine and labor capacity planning, and quality assurance.

Early 1990’s: ERP (enterprise resource planning) is popularized

when MRP II is extended to include more components of the
entire organization: project management goals, financing
abilities, staffing capability, and more.
What is function of MRP

Material requirements planning (MRP) is a planning and control system for inventory,
production, and scheduling. MRP converts the master schedule of production into a
detailed schedule, so that you can purchase raw materials and components.

The main function of MRP is to guarantee material availability on time.

MRP is designed to answer three questions:

• What is needed?
• How much is needed?
• When is it needed?"