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 each 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

Following 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 in the material flow.

• Can be run on any device.

• You can perform central business functions such as procurement, in-house production, delivery schedules, configure products, etc.

You can perform MRP run for individual forecast or total forecast.