In MRP Procedure, you define MRP type in material master. MRP type determines how the material is planned. MRP is performed based on the present and future sales figures, and planned and exact requirement quantities calculate net requirement calculations.

Subsequent MRP types are available −

Manual reorder point planning
Automatic reorder point planning
Forecast-based planning
Material requirements planning with forecasts for unplanned consumption
Master Production Scheduling (MPS)

Consumption-based planning is based on historical consumption values and either uses forecasting or statistical procedures to determine future requirements or just triggers procurement, if the material stock gets low.

For MRP material, normally high value A parts are considered, and the quantity and the desired delivery are the main interest areas. You use Consumption based planning for less critical low value parts B and C.

Manual reorder point planning is the most common type of consumption based planning and involves minimal administrative work to perform this planning. In this planning, the system sets a manually entered reorder point and at the time of planning run it only checks whether the stock has fallen below this reorder point. When the stock is less than this manually entered reorder point, the system triggers procurement to be performed for a fixed lot size.

Subsequent MRP Procedures are supported in consumption based planning −

Reorder Point Planning
Forecast-Based Planning
Time-Phased Planning

To perform MRP, you have to navigate to Logistics → Materials Management → Material Requirements Planning → MRP.

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Master Production Scheduling Procedure

Master Production Scheduling component under MRP is used to flag the materials which affects the company profits and also takes the critical resources. MPS is executed in a similar manner as Material Requirement Planning.

MPS is useful to reduce the storage cost and to increase the planning stability. To work with MPS component, you require MRP components and also other components which are required in MRP run.

Single Item, Single Level Planning

Single Item, Single Level planning involves planning of only one individual material and BOM is not exploded so only the level directly below the material is planned.

To perform single item, single level planning you need to navigate to MRP run and under Planning → Single Item Single Level Planning.

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This opens the first screen of single item, single level planning as shown within the above screenshot. Within the next window, you have to enter the material number, for which you want to carry out single-item planning, and also the plant or planning area, in which you want to plan.

Enter the MRP Control parameters for the planning run.

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If you want to save the parameters set within the initial screen, for the subsequent planning, select Setting option at the top → Save.

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Note that single item single level planning is carried out for material selected. When you select Display results before they are saved, it is possible to make changes before it is saved to the database.

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SAP Simple Logistics – MRP Key Features

Material Requirement Planning defines the techniques based on master production schedule and information from inventory records to determine the requirement and scheduling of every material item. A Material Requirement Planning system helps −

To create schedules identifying specific parts required to produce end items in planning.
To define the exact number of items required.
To define the dates when orders for those materials should be released, as per lead time.

MRP run is based on Master Production Schedule (MPS) that defines the production volume of the finished products. The second input to run MRP is Bill of Materials (BOM) which is a detailed item wise requirement document.

Output of MRP Run

The result of a MRP run could be a work order to be released for in-house production of items.
The results of MRP run could be Purchase Orders, which is sent to outside suppliers.
Rescheduling Notices – issued for items that are no longer needed.

Benefits of MRP Run

Subsequent are the benefits of MRP run −

Improved inventory planning and scheduling.
Faster response as per market changes.
Reduced inventory levels without reducing the customer service.
Increased customer satisfaction and service.
Fast performance by up to factor 10/Memory footprint reduction by factor 5
System analyzes and performs Impact Analysis of the entire material flow in real time and identifies disruptions within the material flow.
Can be run on any device.
You’ll perform central business functions such as procurement, in-house production, delivery schedules, configure products, etc.

You’ll perform MRP run for individual forecast or total forecast.

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So, this brings us to the end of blog.
This Tecklearn ‘MRP Procedures and Key Features in SAP Simple Logistics’ blog helps you with commonly asked questions if you are looking out for a job in SAP S4 Simple Logistics and SAP Domain. If you wish to learn SAP S4 Simple Logistics and build a career in SAP domain, then check out our interactive, SAP S4 HANA Simple Logistics Training, that comes with 24*7 support to guide you throughout your learning period. Please find the link for course details:

https://www.tecklearn.com/course/sap-s4-hana-simple-logistics-training-and-certification/

SAP S4 HANA Simple Logistics Training

About the Course

SAP S/4 HANA Logistics 1909 is a one stop solution for new-age Material Management, Production Planning, Supply Chain Management, as well as sales and distribution of organizations with medium to large infrastructure. SAP S/4HANA Logistics is also known as SAP S4 HANA Enterprise Management which includes all the modules not only the Finance but also the modules like SAP MM, SAP SD and now they are available as a part of SAP S4 HANA as a product and enterprise management is the complete business street. SAP S4 HANA Logistics uses the data processing ability of S4 HANA to provide simpler, faster and more efficient approaches to logistics and supply chain problems.

Why Should you take SAP S4 HANA Simple Logistics Training?

The Average salary of SAP Consultant is $110,250 per annum – PayScale.com
S4 is a new tool to come from SAP HANA stables that can help simplify the domains of logistics, enterprise resource management, supply chain management, and more. Worldwide Business Intelligence and Analytics Market to grow to $22.8 billion in next 2 years – Gartner.

What you will Learn in this Course?

Overview of SAP and SAP HANA

Architecture overview of SAP HANA
History of SAP
Enterprise Architecture
Database, Application and Presentation Layer
Comparing row store and column store in SAP HANA
Overview on views (Attribute, Analytic, Calculation)
SAP HANA Modelling

Introduction to S4 HANA Logistics

How S4 HANA benefits the business enterprises in the logistics domain
SAP Business Suite to S4 HANA
SAP Navigation GUI
New User experience app SAP Flori for SAP software and applications
Deploying S4 HANA Logistics for premise in the cloud or as a hybrid application
Deployment options – On Premise, Cloud, Hybrid
Why go for Simple Logistics
SAP S4 HANA Simple Logistics – Key Innovations
ERP Model Vs S4 HANA Data Model
SAP Simple Logistics – Main Components
Hands On

SAP S4 HANA Implementation Scenarios

Transition to S4 HANA
System Conversion
New Implementation
Landscape Transformation
Hands On

Introduction to SAP Activate Methodology

What is SAP Activate
Why do we need SAP Activate
SAP Activate used in which projects
Advantages of SAP Activate
SAP Activate – Innovations for New Implementation
Hands On

Business Partner and Customer Vendor Integration (CVI) on SAP S4 HANA

Master data synchronization between Business Partner (BP) to customer and vendor
Synchronization control
Customer Vendor Integration (CVI)
Implementation/Migration from ECC to S4 HANA
Converting Customers/ Vendors into BP and Conversion Process & Tools, and Conversion Cockpit.
Configuring BP role
Configuration of number range and grouping
Defining account group
Hands On

SAP Fiori Apps

Introduction to SAP Fiori UX
SAP Flori Launchpad
UI Theme Designer
Innovations in Fiori for different modules
Generate new tiles for a custom/ standard tcode
Creating new catalogue, group & roles
KPI
Hands On

Sales on SAP S4 HANA

Sales Documents (customizing)
Billing process and Customizing, Smart Business
Basic Functions (customizing), Pricing and condition technique.
Sales process, Shipping Process and Customizing, Availability Check, Organizational Structures, Cross-functional Customizing, Master Data
Hands On

Output management on SAP S4 HANA

Prerequisite of output management
Configuration of new output management
- Manage application object type application
- Define output type
- Define business rule for output determination
- Assign output channels
- Define rules for determination of master form template
- Assign form template

Material Requirement Planning (MRP) on SAP S4 HANA

MRP_Live configuration prerequisite
Number range configuration for MRP_Live
Set Up and Creation of planning file entries
Planning Execution for Material Requirements
Concept of Requirements Planning and its Technical Processes
Processing and Assessment of MRP Results
Additional Processes in MRP
Simplification of MRP from storage location to MRP area level

Changes in SAP Simple Logistics Process:

Overview of New Functionalities in SAP Simple Logistics
Overview of SAP Flori Apps related to Logistics/Supply Chain
Architectural Changes for Product Master and Supplier Information
Architectural Changes / Configurations related to Sourcing and Procurement
Architectural Changes / Configurations related to Supply Chain
Architectural Changes / Configurations related to Manufacturing
Architectural Changes / Configurations related to Sales

Data Migration to SAP S4 HANA

Activate methodology for data migration
Guided configuration
Maintenance planner
ABAP Test Cockpit
Adaption note for adapting custom development
Data migration cockpit for new fresh implementation
New field adding in report
Synchronization between BP to customer or Vendor,
Migration of credit management, Migration of material ledger, migration of documented credited decision

SAP S4 HANA Logistics Implementation Projects

Configuring standard Flori apps
Order to Cash Performance monitoring
SAP S4 on premise
Integrating SAP S4 HANA with Design Studio

Got a question for us? Please mention it in the comments section and we will get back to you.

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