mrp

1. Materials Requirement Planning ECC 6.0 Rev. 03/05/10 1
SAPtips Sample Material Requirements Planning MRP Planning
This segment from our 390 page Material Requirements Planning (MRP)
manual is being made available as a sample of our training manuals. Please
contact David.Haynes@ERPtips.com if you have any SAP training needs, or
visit www.ERPtips.com for more information.
Written by Alexis DeStaffany Parker
Published by Klee Associates, Inc.
Copyright Klee Associates, Inc., 2010
Unit 4: Materials Requirement Planning
The goal of materials requirement planning is to produce an optimal supply of
material for the customer demand. The customer demand might be for an actual
customer or for an internal customer in the case of sub-assembly production or
externally procured materials. The following are the goals of materials
requirement planning:
 Maximizing availability of materials for internal and external customers
 Minimizing warehouse stock
 Minimizing logistics costs for both procurement and production
In order to achieve these goals materials requirement planning must balance
inventory with service of the customers. Materials requirement planning provides
the ability these goals in the following ways:
 Providing gross and net requirement calculations
 Providing bill of material explosion for all components
 Providing lot size determination to optimize purchasing and production
 Providing safety stock strategies for optimizing inventory levels
In this unit, we will review the following:
 Materials Requirement Planning Calculation
 Materials Requirement Planning File
 Materials Requirement Planning Sequence Review
 Materials Requirement Planning MRP Types
 Materials Requirement Planning Processing
 Materials Requirement Planning Configuration
 Materials Requirement Planning Business Add-Ins

2. Unit 4: Materials Requirement Planning Klee Associates, Inc.
2 Rev. 03/05/10 Materials Requirement Planning ECC 6.0
Materials Requirement Planning Calculation
Materials requirement planning calculation is performed during the run of
materials requirement planning. The system uses the settings in configuration,
master data, demand and supply to determine where there are shortage and
overages to determine the most optimal plan based on the defined settings. As
reviewed in the overview, we discussed the process of calculating the supply
requirements based on the demand elements. In the diagram below we see the
demand requirements and the supply requirements, in this section we will review
all of these components, perform a demonstration of the calculation in materials
requirement planning and perform and exercise in materials requirement
planning calculation.
The following demand items are found in materials requirement planning
calculation:
 Sales Orders
 Sales Scheduling Agreements
 Dependent Requirements
 Reservations
 Planning Independent Requirements
The following supply items are found in materials requirement planning
calculation:
 Planned Orders
 Purchase Requisitions
 Schedule Lines
 Purchase Orders
 Production Orders

3. Klee Associates, Inc. Unit 4: Materials Requirement Planning
Materials Requirement Planning ECC 6.0 Rev. 03/05/10 3
 Inbound Deliveries
 Stock
Demonstration: Materials Requirement Planning
Calculation
In this demonstration, we will perform the following steps:
 Create a material master record
 Assign the lot size for monthly lots and enter a rounding value
 Create demand for the material
 Run single-item, single-level on the material
 Evaluate the results of materials requirement planning
Step 1: Create Raw Material Master Record
1. To create a raw procured material, perform one of the following:
 Enter transaction code MM01.
 Select the SAP menu path: Logistics  Materials Management 
Material Master  Material  Create (General)  Immediately
2. Enter the Material Number, Industry Sector, Material Type, and Copy from
material, and press Enter.

4. Unit 4: Materials Requirement Planning Klee Associates, Inc.
4 Rev. 03/05/10 Materials Requirement Planning ECC 6.0
3. Highlight the views required for the material and lick the button.

5. Klee Associates, Inc. Unit 4: Materials Requirement Planning
Materials Requirement Planning ECC 6.0 Rev. 03/05/10 5
4. Enter the Plant and Storage Location for both the organizational levels, and
Copy from, and click the button.
Make sure to enter the copy from for plant and storage location, otherwise,
the defaults from the copy from material will not copy over to the creation of this
material.
5. Press Enter through all the views of the material master until the save screen
is prompted as seen below.
6. Click the button.
Step 2: Assign the lot size for monthly lots and enter a rounding
value
1. To change a material using the stock requirements list for a material, perform
one of the following:
 Enter transaction code MD04.

6. Unit 4: Materials Requirement Planning Klee Associates, Inc.
6 Rev. 03/05/10 Materials Requirement Planning ECC 6.0
 Select the SAP menu path: Logistics  Production  Production
Planning  MRP  Evaluations  Stock/Requirements List
2. Enter the Material Number and Plant and press Enter.
3. Select the menu path Environment  Change Material.
4. Enter the Lot Size for Monthly lot size and the rounding value, and click the
button to return back to the stock requirements list.

7. Klee Associates, Inc. Unit 4: Materials Requirement Planning
Materials Requirement Planning ECC 6.0 Rev. 03/05/10 7
Step 3: Create Demand for Material
1. To create demand for a material, perform one of the following:
 Enter transaction code MD64.
 Select the SAP menu path: Logistics  Production  Production
Planning  Demand Management  Planned Independent
Requirements  Create
2. Enter the Material Number and Plant and the press Enter.
3. Enter the demand for the next six months and click the button.
Step 4: Run single-item, single-level on the material
1. To run the MRP for a material, perform one of the following:
 Enter transaction code MD03.
 Select the SAP menu path: Logistics  Production  MRP  Planning
Single-item, single-level

8. Unit 4: Materials Requirement Planning Klee Associates, Inc.
8 Rev. 03/05/10 Materials Requirement Planning ECC 6.0
2. Enter the Material and Plant and press Enter.
3. This message is supplied to indicate that the input parameters need to be
verified. Press Enter.
Step 5: Evaluate the results of materials requirement planning
To review the results of the MRP run display the stock requirements list for a
material, perform one of the following:
 Enter transaction code MD04.
 Select the SAP menu path: Logistics  Production  Production
Planning  MRP  Evaluations  Stock/Requirements List

9. Klee Associates, Inc. Unit 4: Materials Requirement Planning
Materials Requirement Planning ECC 6.0 Rev. 03/05/10 9
4. Enter the Material Number and Plant and press Enter.
Here you can see that materials requirement planning used monthly lot size to
calculate the purchase requisitions in quantity rounding values at intervals of 100.
Step 6: Change the rounding value, run single-item, single-level and
review the results.
1. To change a material using the stock requirements list for a material, perform
following (still in MD04):

10. Unit 4: Materials Requirement Planning Klee Associates, Inc.
10 Rev. 03/05/10 Materials Requirement Planning ECC 6.0
2. Enter the Material Number and Plant and press Enter.
3. Select the menu path Environment  Change Material.
4. Enter the new Rounding value and click the button to return back to the
stock requirements list.
5. Run single-item, single-level.
6. Evaluate the results in the stock requirements list.
The results of the calculation of the materials requirement planning used the
rounding value to generate the supply requirements to meet the demand
requirements.

11. Klee Associates, Inc. Unit 4: Materials Requirement Planning
Materials Requirement Planning ECC 6.0 Rev. 03/05/10 11
Exercise: Materials Requirement Planning Calculation
In this exercise, you will perform the following steps:
 Create a material master record
 Assign the monthly lot size and rounding value
 Create demand for the material
 Run single-item, single-level on the material
 Evaluate the results of materials requirement planning
1. Create a raw procured material master record.
Field Value
Material A-100-E-XXX (XXX is number assigned
by your instructor).
Industry Sector Mechanical Engineering
Material Type Raw Material
Copy From A-100-M
Views  Basic Data
 Purchasing
 MRP
 General Plant Data / Storage
 Accounting
 Costing
Plant 1000
Storage Location 1000
2. Change the material master record.
Field Value
Material A-100-E-XXX (XXX is number assigned
by your instructor).
Plant 1000
Lot Size Monthly
Rounding Value 1000
3. Create demand requirement for the raw material.

12. Unit 4: Materials Requirement Planning Klee Associates, Inc.
12 Rev. 03/05/10 Materials Requirement Planning ECC 6.0
Field Value
Material A-100-E-XXX (XXX is number assigned
by your instructor).
Plant 1000
Demand Enter demand for the next three months
of 1500 pieces.
4. Run Single-Item, Single-Level on the material.
Field Value
Material A-100-E-XXX (XXX is number assigned
by your instructor).
Plant 1000
5. Review the stock requirements for the raw material in the stock requirements
list.
Field Value
Material A-100-E-XXX (XXX is number assigned
by your instructor).
Plant 1000
Procurement
Proposals
Do you have an overage in stock after
the requirements?

13. Klee Associates, Inc. Unit 4: Materials Requirement Planning
Materials Requirement Planning ECC 6.0 Rev. 03/05/10 13
Material Requirements Planning File
The material requirements planning file is used to determine which materials to
plan and how to plan each material within the planning file. As previously seen,
below is the flow of the planning file within materials requirement planning.
The flags set in the planning file determine the status of the material for materials
requirement planning. The following flags are set in the planning file:
 Record Type – defines if the material is an MRP material or a phantom
assembly.
 Code – is the low level code used to determine the level of the material
during bill of material explosion and thus determines the sequence of
planning the material during materials requirement planning.
 Material – is the material number.
 MRP area – is the area in which the material is planned.
 MPS Indicator – defines the material to only be planned using master
production scheduling.
 Net Change Planning Indicator – determines when there is a change to a
material so the material will be planned during a net change run of materials
requirement planning. This flag is set if the a goods receipt occurs for the
material, if a reservation, purchase order or production order exist and if the
goods movement takes place in a MRP storage location.
 Net Change Planning Indicator in the planning horizon – determines when
there is a change to a material in the planning horizon so the material will be

14. Unit 4: Materials Requirement Planning Klee Associates, Inc.
14 Rev. 03/05/10 Materials Requirement Planning ECC 6.0
planned during a net change planning horizon run of materials requirement
planning. This flag is set if the a goods receipt occurs for the material, if a
reservation, purchase order or production order exist and if the goods
movement takes place in a MRP storage location.
 Reset Procurement Proposals – defines that a change has occurred to the
procurement elements to trigger materials requirement planning for these
elements.
 Re-explode BOM – controls that a bill of material has changed and the bill of
material should be re-exploded during the next run of materials requirement
planning.
 Planning Date – is the next date to plan the material in time-phased planning.
In this section, we will review the planning file entries and will review the
configuration to activate the system to use the planning file and we will also
review the conversion program if MRP areas are turn on in an environment.
Demonstration: Material Requirements Planning File
The materials requirements planning file demonstration displays the planning file
entries to review the selections available and to review the flags in the planning
file.
Planning File Entries
1. To display the planning file entries, perform one of the following:
 Enter transaction code MD21.
 Select the SAP menu path: Logistics  Production  MRP  Planning
 Planning File Entry  Display.

15. Klee Associates, Inc. Unit 4: Materials Requirement Planning
Materials Requirement Planning ECC 6.0 Rev. 03/05/10 15
2. Enter the Plant, leave the defaults, and click the button.
Configuration: Material Requirements Planning File
In this configuration demonstration we will review the activation step for the
planning file, determine goods movements for the planning file and review
options for the planning file when converting to MRP areas.

16. Unit 4: Materials Requirement Planning Klee Associates, Inc.
16 Rev. 03/05/10 Materials Requirement Planning ECC 6.0
Activate MRP and Set Up Planning File
This setting activates the planning file and activates materials requirement
planning.
1. From the IMG, select the menu path: Production  Material Requirements
Planning  Planning File Entries  Activate MRP and Set Up Planning File
Define Planning File entries for goods movements
This setting allows you to always set a planning file entry for any goods
movement or set over and under delivery tolerances for setting goods
movements to flag the planning file.
1. From the IMG, select the menu path: Production  Material Requirements
Planning  Planning File Entries  Define Planning File entries for goods
movements
Convert Planning File entries for MRP areas
This program allows you to convert existing planning file entries with MRP areas.
There is a test option and a conversion option.
1. From the IMG, select the menu path: Production  Material Requirements
Planning  Planning File Entries  Convert Planning File entries for MRP areas

17. Klee Associates, Inc. Unit 4: Materials Requirement Planning
Materials Requirement Planning ECC 6.0 Rev. 03/05/10 17
Legal Speak:
Purchase of this book or acquisition at an ERPtips class, constitutes an implied
agreement by the purchaser to a limited, license granted to the purchaser by
Klee Associates, Inc., specifically for purposes limited to improving your personal
knowledge of SAP software which does not in any way compete with Klee
Associates.
This manual is protected by copyright law, and is sold or is part of an ERPtips
class with the following conditions:
The manual will be used for your personal professional development.
The manual will not be physically copied for distribution to other individuals or
converted to an electronic copy for distribution to other individuals, unless
copyright permissions for copying have been acquired from Klee Associates,
Inc.
The manual will not be used to conduct training classes by you or other
individuals, without the written permission of Klee Associates, Inc.
Inclusion of the concepts in this book in any internal client training material is
allowed if the source of the concepts is acknowledged as follows:
Copyright 2010
All rights reserved.
Used with permission.
Klee Associates, Inc.
NO WARRANTY: This documentation is delivered as is, and Klee Associates
makes no warranty as to its accuracy or use. Any use of this documentation is at
the risk of the user. Although we make every good faith effort to ensure
accuracy, this document may include technical or other inaccuracies or
typographical errors. Klee Associates reserves the right to make changes
without prior notice.
ERPtips is a valued resource for thousands of clients and consultants worldwide.
Visit our web site for more information about upcoming training, books, and
newsletters.
www.ERPtips.com
ERPtips is a registered trademark of Klee Associates, Inc.
No Affiliation: Klee Associates, Inc. and this publication are not affiliated with or
endorsed by SAP AG. SAP AG software referred to on this site is furnished
under license agreements between SAP AG and its customers and can be used
only within the terms of such agreements. SAP AG is a registered trademark of
SAP AG. All other product names used herein are trademarks or registered
trademarks of their respective owners.