Transcript Document

MRP: Material Resource Planning
Contents:
 SAP AG 2007

MRP Fundamentals

MRP Wizard
MRP: Unit Objectives
At the conclusion of this unit, you will be able to:
 SAP AG 2007

Describe the complete MRP Process in SAP
Business One

Manage sales forecasts in the system

Use the MRP wizard

Display the list of all MRP recommendations
with the order recommendation report
MRP: Business Scenario
 SAP AG 2007

You are selling items that have to be produced and
other items that have to be purchased.

You do not always have enough of them in stock.
However, you want to make sure that you can serve
your customer’s needs as often and as fast as
possible. For this reason, you have to plan ahead.

You want to be able to react quickly. On one side,
you need to create sales forecasts while on the other
side, you need to see what your stock, receipts, and
requirements looks like.

You want the system to make recommendations
about how you should react to different situations
concerning various items.
MRP Fundamentals: Topic Objectives
At the conclusion of this topic, you will be able to:

 SAP AG 2007
Describe the fundamentals of MRP such as the
bill of materials processing, the lead time, and
the item master planning data
MRP Overview
Item
master record: Procurement Method field on the Planning Data tab to define whether an
item is a produced item (Make) or a purchased item (Buy).
stock / receipts
before MRP-run:
this is the current
inventory status and
planned forecasts for
a purchased item.
Purchase
Order
30 pcs.
Stock
20 pcs.
Sales
Order
40 pcs.
Sales
Forecast
50 pcs.
Sales
Forecast
30 pcs.
time
requirements
Material Requirements Planning
after MRP-run:
the MRP-run creates
recommendations for
purchase orders (P.O.*)
to be able to fulfill the
requirements.
 SAP AG 2007
stock / receipts
Stock
20 pcs.
P.O. *)
20 pcs.
Sales
Order
40 pcs.
requirements
Purchase
Order
30 pcs.
P.O. *)
20 pcs.
P.O. *)
30 pcs.
Sales
Forecast
50 pcs.
Sales
Forecast
30 pcs.
time
MRP BOM Processing
before MRP-run:
There is a requirement for 10
skateboards from a sales order.
The skateboard is a produced
item.
The board, the wheels and the
axis are purchased items.
Skateboard
Wheels
4 pcs.
Board
1 pc.
Sales Order
Axis
2 pcs.
Skateboard
10 pcs.
Material Requirements Planning
after MRP-run:
Production Order
The MRP creates
recommendations for a
production order for the
skateboard and
recommendations for
purchase orders for all the
purchased items.
 SAP AG 2007
Skateboard
10 pcs.
Purchase Order
Purchase Order
Purchase Order
Boards
10 pcs.
Wheels
40 pcs.
Axis
20 pcs.
MRP Lead Time
Lead Time (in item master
record on the Planning data
tab) - is the number of days to
calculate how long it takes to
produce an item
Sales Order
Skateboard
Lead Time: 10 days
Wheels
Board
Axis
Skateboard
Delivery Date: 30.11.
Material Requirements Planning
stock / receipts
Purchase Orders
Production Order
boards, wheels, axis
Skateboard
time
10 working days
16.11.
requirements
 SAP AG 2007
30.11.
MRP Requirements
Sales Order
boards, wheels, axis
Skateboard
Item Master: Planning Data
Item Master Data
Item Number
Description
…
P1001
Skateboard
Planning Data
MRP / None
Procurement Method
Make / Buy
Order Interval
Weekly / Monthly / …
Order Multiple
12
Minimum Order Qty.10,00
Lead Time
 SAP AG 2007
None = not planned and no production order
and purchase order recommendations are
created for the item)
Planning Method
10
Days
Forecasts - to plan purchase and production in advance, even
before you receive actual sales orders
Item Skateboard
Start Date 01.09.
EndDate 31.12.
View monthly
stock / receipts
01.09.
01.10.
01.11.
01.12.
31.12.
time
requirements
 SAP AG 2007
Sales
Sales
Sales
Sales
Forecast
Forecast
Forecast
Forecast
Skateboard
Skateboard
Skateboard
Skateboard
50 pcs.
40 pcs.
20 pcs.
60 pcs.
Forecasts – Setting in Administration module
 SAP AG 2007
MRP Input / Output
Input
Sales
Order /
AR Reserve
Invoice
Purchase
Order /
AP Reserve
Invoice –
expected receipts
Forecast
Inventory
Planning
Data from
Item Master
Parent
Production
Order – expected receipts
Parent
Dependant
Requirement
Bill of
Material
Material Requirements Planning
Output
Production
Order
 SAP AG 2007
Purchase
Order
MRP Wizard: Topic Objectives
At the conclusion of this topic, you will be able to:
 SAP AG 2007

Work with MRP wizard

Run MRP in the SAP Business One system
MRP Wizard Process
MRP Wizard
Step 1
Step 2
Step 3
Step 4
MRP Results
MRP Scenario
Scenario Details
Data Source
create a new
or
select an
existing
scenario
define the planning
horizon
and
the items
define the
data source
MRP Scenario
Name Description
 SAP AG 2007
Scenario Description
Simulation
Planning Horizon
Items
Display Preferences
Existing Stock
Purchase Orders
Sales Orders
Production Orders
Minimum Stock Level
Forecast
Warehouses
Item
-Initial Stock
-Receipts
-Gross Requirements
-Final Stock
MRPRun
Order Recommendation Report
Purchase Orders
Production Orders
MRP Results
MRP Results
Planning Horizon 25.09. - 30.09.
#
Item No.
Past… 25.09.
26.09.
1 P1001
Display after MRP
27.09.
28.09.
29.09.
30.09.
10
Initial Stock
Receipts
Gross
Requirements
10
click
Final Stock
dead periods
- its lead time is too long to permit
timely procurement
Pegging Information – P1001
Item Code P1001
Source
17
 SAP AG 2007
Type
Sales Order
Due Date Quantity
28.09.
10
Order Recommendation Report
Order Recommendation
Create Order Type
Item
Quantity
Vendor
Purchase Order
A1019
40
21.09.
S1007
Purchase Order
A1020
200
21.09.
S2100
Production Order
P1001
50
15.10.
Purchase Order
Supplier S1007 Delivery Date 21.09.
Item No. A1019 Quantity 40
Production Order
Product No. P1001 Due Date 15.10.
Planned Quantity 50
 SAP AG 2007
Due Date
>>From MRP Wizard,
choose GoTo  Open
Order Recommendations
>>Choose MRP  Order
Recommendations
MRP: Unit Summary
You are now able to:
 SAP AG 2007

Describe the complete MRP Process in SAP
Business One

Manage sales forecasts in the system

Use the MRP wizard

Display the list of all MRP recommendations
with the order recommendation report