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Master Production Scheduling is carried out for finished product that manufacturing in-house Material Requirement Planning is carried out using current and future sales figures Consumption-Based Planning uses past consumption data to calculate future requirements
Reorder Point Planning Forecast-Based Planning Time-Phased Planning
26 January 2011
MRP Overview Processing Steps During a planning run. the system performs the following steps Calculates net requirements Calculates lot size Scheduling Creates order proposals Creates exception messages 26 January 2011 Page 2 .
4 Buyer convert PR to PO DepReq DepReq Safety PO PlnOrd Stock R S A. MPS planning run result as µPlanned order¶ to supply requirement.3 PR is created (See detail) 2.7 Reservation is eliminated when material is withdrawn for production order Depreq Safety PlnOrd Stock R S R S R S 26 January 2011 Page 3 . SO SO PlnOrd PlnOrd DepReq DepReq Safety PR PlnOrd Stock R S R S A.6 Reservation is created from production order 3. Production planner convert planned order to be production order SO SO ProOrd PlnOrd Reservation Depreq Safety Stock PlnOrd Stock A.2 Procurement Proposal is created from MRP planning run DepReq DepReq Safety PlnOrd Stock R S R A.MRP ± Calculates net requirements MPS 1.5 GR from vendor DepReq DepReq Safety Stock PlnOrd Stock R S R S A.1 Requirements of components are passed on to MRP DepReq DepReq Safety Stock MRP A. Requirement from sales order passed on to demand management SO SO S A.
DO after goods has been shipped R SO SO Stock PlnOrd S 26 January 2011 Page 4 . Post goods issue ref. CS open delivery order for arrange shipment R DO SO SO Stock PlnOrd S 6.MRP ± Calculates net requirements MPS From previous page SO SO MRP R ProOrd PlnOrd S 4. Make goods receipt to warehouse when finish produce SO SO Stock PlnOrd R S 5.
MRP ± Calculates lot size Lot-sizing Procedures The system calculates the receipt quantity in the lot-size calculation. which is carried out during the procurement quantity calculation. Lot-for-lot order quantity Replenishment to maximum stock level Weekly lot size Monthly lot size Additional restrictions Minimum lot size (minimum procurement quantity per lot) Rounding value (The procurement quantity must be a multiple of this value) 26 January 2011 Page 5 .
MRP ± Scheduling Backward Scheduling for External Procurement For materials that are planned. Process Flow The system starts with the requirements date and then schedules backwards to determine the release date of the purchase requisition (order start date of planned order. The materials must be available by these dates. which is to be procured externally). the requirement dates in the future are known. that is. The release date for the purchasing department is calculated during scheduling. 26 January 2011 Page 6 . the date by which the materials must be ordered so that they are available for the requirements date.
2.08 Release date 16.03.08 MRP date 18.104.22.168.08 Opening Processing time period 3 days for purchasing 1 day Opening date 13.Scheduling Backward Scheduling for External Procurement Example Material: 14003290 GR processing time 1 day Processing time for purchasing 1 day Planned delivery time 7 days Opening period 3 days Today 20.08 Planned delivery time GR processing 7 days time 1 day Opening Processing time period 3 days for purchasing 1 day 26 January 2011 Page 7 .MRP .03.08 Release date 23.2.08 Planned delivery time GR processing 7 days time 1 day MRP date 10.08 time Opening date 20.
the MRP controller can decide between a planned order or a purchase requisition.MRP ± Creates order proposals Order Proposals The type of order proposal that is automatically created by the planning run depends on the material¶s procurement type. 26 January 2011 Page 8 . For materials that are externally procured. a planned order is automatically created. For materials produced in-house.
you must consider previous consumption or future requirements.MRP .Reorder Point Planning Reorder Level The reorder level (sometimes known as the reorder point) is calculated by adding the safety stock plus the expected average material consumption within the replenishment lead time. Therefore. previous consumption values or future requirements. and vendor delivery/production timeliness when determining the safety stock level. you must consider safety stock. Safety Stock Safety stock must be set at a level that covers both excess material consumption within the replenishment lead time and any additional requirements that may occur because of delivery delays. 26 January 2011 Page 9 . and the replenishment lead time. When determining the reorder level.
Reorder Point Planning Calculates net requirements Example: Material 14002001 Lead time 7 days Average consumption 20 EA (per lead time) Safety Stock 50% = 10 EA (consumption deviation) Reorder Point = 20 + 10 = 30 EA Qty Qty Qty Reorder Point Stock Reorder Point Stock Reorder Point PO PR PO Stock Reservation 26 January 2011 Page 10 .MRP .
Reorder Point Planning Calculates net requirements Example: Material 14002001 Lead time 7 days Average consumption 20 EA (per lead time) Safety Stock 50% = 10 EA (potential deviation) Reorder Point = 20 + 10 = 30 EA Qty Qty Qty Reorder Point Stock PO PR Reorder Point Reorder Point Stock Stock PO 26 January 2011 Page 11 .MRP .
Reorder Point Planning Calculates lot size Lot size: Lot-for-lot order qty Replenish to maximum stock level Example: Material 14002001 Lead time 7 days Average consumption 20 EA (per lead time) Safety Stock 50% = 10 EA (potential deviation) Reorder Point = 20 + 10 = 30 EA Qty Maximum stock level PR 25EA PR 23EA Qty Reorder Point PR 5EA PR 3EA Reorder Point Stock 27 EA Stock 27 EA 26 January 2011 Page 12 .MRP .
MRP .Reorder Point Planning Replenishment of stock Stock Lot size Reorder point Safety stock Reorder point Replenishment lead time Delivery date Time 26 January 2011 Page 13 .
MRP . you can easily sort out any materials that you need to reprocess manually. Special search and selection functions are available for this in the evaluations for MRP. start date lies in the past.Creates exception messages Exceptional messages Exception messages depend on the transaction being carried out and are meant to inform you of an important or critical event (for example. 26 January 2011 Page 14 . safety stock has been exceeded). By means of the exception messages.
MRP ± Planning Result Planning Results The MRP controller has two options for calling up the planning results: MRP list (MD05) Stock/requirements overview (MD04) 26 January 2011 Page 15 .