MRP

Stands for Material Requirement Planning. A

set of techniques that contain BOM Data,
Inventory data and master production
schedule to calculate the requirements
for a material is called an MRP.
MRP Group
The MRP group contains all the materials
from the point of view of MRP for assigning
special control parameters for the total
planning run. These control parameters
include, for example, the strategy group, the
consumption mode, and the planning
horizon.
MRP Type
Key that determines whether and how the
material is planned. You have the following
options:

manual reorder point planning

automatic reorder point planning
forecast-based planning
material requirements planning with
forecasts for unplanned consumption
master production scheduling (MPS)

MRP controller
Specifies the number of the MRP controller
or group of MRP controllers responsible for
material planning for the material.
Lot size (materials planning)
Key that determines which lot-sizing
procedure the system uses within materials
planning to calculate the quantity to be
procured or produced.
Lot-sizing procedure
A procedure in material requirements
planning used to calculate order and
production quantities (lot sizes).
Lot-sizing procedures are divided into the
following groups

Static
Period
Optimum

Scheduling Margin Key

Key that the system uses to determine the
floats required for scheduling an order. We

define the following

scheduling margin key

floats

with

the

opening period
float after production (only in the case of
in-house production)
float before production (only in the case
of in-house production)
release period (only in the case of
production order management)

Floats are maintained in workdays.

Planning time fence
It is used to control the master planning for
further planning with in the planning time
fence time is called planning time fence.
Reorder Point
Reorder point is a critical stock level which
is set based on the consumption values of
the material and planned delivery time.
Whenever the stock falls below the reorder
point in the planning run the system
automatically generates the requirements
and those requirements are converted into

procurement proposals. Basically reorder

point is selected for the materials depending
upon the consumption value of the material
and the lead time for delivery. The reorder
point should be greater than or equal to
safety stock and the reorder quantity is
available for planning and can be treated as
an available stock.
They are two types of reorder point planning

Manual reorder point planning

Automatic reorder point planning

Manual Reorder Point Planning

In the case of Manual Reorder Point
Planning, the reorder point is selected
manually based on the consumption values
of the material and the lead time for the
delivery.
Automatic Reorder Point Planning
In the case of Automatic Reorder Point
Planning, the reorder point is selected
automatically that is the systems select the
reorder point automatically based on the
consumption values of the material and lead
time for delivery. So if we want to select the

automatic reorder point, then a forecasting

view must be selected in the material master
where we maintain consumption values of
the material.
Forecast-based planning
Special procedure in consumption- based
planning which is based on future
requirements predictions calculated by the
forecast.
Time-phased planning
Special procedure in consumption- based
planning which is based on seasonal
planning.