In SAP PS (Project System), Material Requirements Planning (MRP) is a functionality that helps manage

the procurement and availability of materials required for project execution. Here's a quick overview:

1. **Material Planning**: MRP in SAP PS enables the planning and procurement of materials needed for
project activities, ensuring that the necessary materials are available at the right time and in the right
quantity to support project execution.

2. **Integration with SAP MM**: MRP in SAP PS is closely integrated with SAP Materials Management
(MM) module, allowing for seamless material planning and procurement processes within the project
context.

3. **Bill of Materials (BOM)**: MRP uses the project's bill of materials (BOM) to determine the
materials required for project activities. The BOM specifies the components and quantities needed to
produce or assemble a particular product or deliverable within the project.

4. **Material Requirements Calculation**: Based on the project's BOM and the planned production or
assembly schedule, MRP calculates the material requirements for each project activity, taking into
account lead times, stock levels, and existing reservations.

5. **Procurement Proposals**: MRP generates procurement proposals such as purchase requisitions or

planned orders for the materials needed to fulfill project requirements. These proposals can be
converted into purchase orders or production orders for material procurement and manufacturing.

6. **Scheduling and Rescheduling**: MRP continuously evaluates material requirements and adjusts
procurement proposals based on changes in project schedules, material availability, or demand
fluctuations.

7. **Inventory Management**: MRP helps manage inventory levels by ensuring that materials are
procured in a timely manner to avoid stockouts or excess inventory, optimizing inventory turnover and
minimizing carrying costs.

8. **Cost Control**: By accurately forecasting material requirements and facilitating timely

procurement, MRP contributes to cost control and budget adherence within the project.
Overall, MRP in SAP PS plays a critical role in ensuring the availability of materials needed for project
execution, supporting efficient project planning, scheduling, and cost management.