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SAPMRPConfiguration

StudyMaterialContributedbyUlhasKavleSeniorSAP
Consultant

NextStep>>>CreationofMaterialMasterMRPViewsandAssignmentofMRP
Types


SAPMRPConfiguration




SAPMRPConfiguration

ThefollowingaretheMajorConfigurationitemsexplainedin
detail:

a)ActivatingMRPandPlanningFileEntry
b)SAPMRPPlantLevelMRPParametersConfiguration
c)SAPMRP,MRPGroupLevelParametersConfiguration
d)ConfiguringSAPMRPTypes
e)ConfiguringSAPMRPScopeofPlanningfortheTotal
PlanningRun
f)ConfiguringSAPMRPPlanningtimefenceandRollForward
Period
g)ConfiguringSAPMRPAreas
h)SAPMRPDynamicSafetyStock(RangeofcoverageProfile)
i)ConfiguringSAPMRPDaysSupplyandReceiptDaysSupply


SAPMRPConfiguration

ActivatingMRPandPlanningFileEntry


a)ActivatingSAP'sMaterialRequirementsPlanning(MRP)
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Thisconfigurationallowsyoutochoosetheplantforwhichyou
would want to activate SAP Material Requirement Planning
(SAPMRP).ActivatingMRPfortheplantallowsonetousethe
SAPMRPtoolfortheplant.SAPTransactioncodeOMDUand
theSAPpathisLogistics>Production>MRP>PlanningFile
Entry>ActivateMRPandSetupPlanningFile

b)ActivatingPlanningFileEntriesforaPlant

ActivatingPlanningfileentryfortheplant(throughavariantthat
can be rescheduled) allows you to collect all the material in a
planningfilelist,whichhasanMRPTypeinthematerialmaster
MRP1View(otherthanMRPTypeXO)

Theprocessofrecordingaplanningfileentryforamaterial,can
be run periodically using a batch job scheduling method. The
transactioncodetosetupthevariantandperiodschedulingis
OMDO and the Path for activating the planning file set up is
Logistics>Production>MRP>PlanningFileEntry>Activate
MRPandSetupPlanningFile

Alltheentriesintheplanningfilewillhaveachangeindicator
specifying that a material has undergone a change (change in
receipts elements or issues elements). This indicator will help
you to choose only those materials that have undergone a
change, through the use of planning key called Net Change
PlanningwhenrunningMRP.

The planning file record for a material also has a net change
planning in the current horizon field which will be set if the
changeinthematerialsreceiptorissueelementisvalidinthe
planninghorizon.Thisindicatorwillhelpyouchooseonlythose
materials which have undergone a change in the planning
horizon through the use of a planning key, in an MRP run,
calledNetchangeplanningintheplanninghorizon.

PlantLevelconfigurationforMRP

PlantLevelconfigurationforMRP


SAPMRPisrunatplantleveloratagroupofplantlevel(called
as scope of planning), thus the MRP configuration is done at
Plantlevel.

TheconfigurationdoneforSAPMRPatPlantlevelwouldalso
be true for SAP Consumption Based Planning (SAP CBP)
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settings.

Transaction code OPPQ takes you in to the SAP MRP
configuration called as Plant Parameters for Material
RequirementPlanning.ThePathwhichcanbeusedisLogistics
> Production > Material Requirement Planning > Plant
Parameters > Carry out Overall Maintenance of Plant
Parameters.

TheTransactioncodeforConsumptionBasedplanningisOMI8
and the Path is Logistics > Materials Management >
Consumption Based Planning > Plant Parameters > Carry out
OverallMaintenanceofPlantParameters.

FigMRPConfig1


InthetransactioncodeforPlantlevelparametersforSAPMRP,
youshouldfirstinputtheplantandpressthemaintainbutton.

If you have already maintained the configuration for the
parameters,thenitstatesso,ifyouhaventthenitsimplysays
ToMaintainnexttotheparameter

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FigMRPConfig2



Followingaretheparametersthatneedtomaintainasapartof
SAPMRP/CBPConfiguration:

a)Numberranges


ThenumberrangeIDsaremaintainedforthefollowingobjects:

thePlannedorders
thereservations,
thedependentrequirements,
thesimulativedependentrequirements,
thepurchaserequisitions,
theMRPLists,

InthissectiononlythenumberrangeIDsaremaintained.While
theactualnumberrangeisconfigured,forthenumberrangeID,
using a transaction code OMI2 (for the above mentioned
objects created in the planning run). One can also use the
transaction code OMI3 for the objects created manually in the
frontend.

Every number range interval, created using OMI2 and OM13,
hasanID,whichcanbeallocatedtotheobjectsatplantlevel,
i.e., every plant can have a different number range for the
objectsmentionedabove.
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b)AvailabilityCheckruleforBackorderProcessing


As per standard SAP, the Availability checking rule for the
backorder processing is PP, though you can have your own
availabilitycheckrulescreatedorconfigured.

Every Availability checks rule (availability checking scope
defined) has a set of receipts (Purchase orders, Production
orders) and issues (Sales orders, dependent requirements,
reservations,plannedindependentrequirementsetc)whichare
to be considered or not to be considered during the SAP
availabilitychecks.

Tohavethecheckingruleworkalongwiththeconfiguration,you
should have theAvailability checking groups maintained in the
material master. The Checking groups are configured to be
associatedwiththecheckingrules(checkingscopes).

The availability checking rule (checking rule scope) has to be
maintained, for a given SAP functionality and it has to be
assigned to the availability checking group maintained in the
material master. The SAP functionalities that use availability
checkstochecktheavailabilityoftheheadermaterialsaswell
ascomponentsattheplantatthetimeofsalesordercreation,
theavailabilitychecksoftheheadermaterialatthetimeofsales
order delivery, the availability checks for components in
productionthusreportingthemissingpartslist,thebackorder
processingetc.



c)Reporting


Thisconfigurationisusedforthefollowingpurposes.

Toconfiguretheobjects,whicharetobeconsideredin
the calculation of the receipts days supply like the
production orders/process orders, firmed planned orders,
purchaseorders,assignedplannedorders,firmedpurchase
requisitions,QMInspectionlots,reservations,safetystocks


Toconfigurethereportingofperiodstotalsintermsofa
defined period (day, week, month, periods as per planning
calendar) of in Stock requirement list, MRP list, simulative
MPRorinteractiveMRP




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d)MRPControllers


This is a mandatory configuration. Here you can configure the
list of MRP controllers for the plant. A MRP Controller is a
personoragroupofpeople,whichisresponsibleforplanninga
materialoragivenlistofmaterials.

You have to assign the MRP controller to the Material Master
MRP1View,soastodelegatetheresponsibilityoftheplanning
andevaluationofplanningforthatmaterial.




e)Floats


Floats are buffers in the total lead time, that are provided in
production/process order or in the planned orders created
manually or during an MRP run. The schedule margin key is
usedintheMaterialMasterMRP2View.ItisusedinMRPas
wellasinproductionorder.

Thefloatsaredefinedusingtheschedulingmarginkey.

Openingperiod:Numberofworkingdaysbetweenthedatethat
the order is created and the planned start date. This time is
availablefortheMRPcontrollertoconvertaplannedorderinto
apurchaserequisitionoraproductionorder.

Float after production: Number of working days between the
scheduledfinishdateandtheorderfinishdateusedasafloat
inproductionscheduling.

Floatbeforeproduction: Number of working days between the
orderstartdateandthescheduledstartdateusedasafloatin
production.

Scheduling release period: Number of workdays between the
planned start date and the date for releasing the order. If the
order release indicator is set, the production order is released
byabackgroundprogramthattakesalldatesintoaccount.


Plant Plant Margin Opening Fl. Before Fl. After Release
Name Key Period Production Production Period
(In (InDays) (InDays) (In
Days) Days)
0001 0001 001 5 2 2 5
0001 0001 002 5 3 3 5
0001 0001 002 5 4 4 5



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f)SpecialProcurement


The special procurement function helps you to configure and
assignspecialprocurementtothematerialswhichcanbeused
duringanMRPrunwhilecreatingtheprocurementproposal.

The special procurement functions are withdrawal from
alternate plant, production in alternate plant, subcontracting,
directproduction,phantomitemplanning,

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materialmaster/sapmrp2view


Example:ForStockTransferfromPlantC001toPlantC002


Create the Special procurement key (Key number = 12 as an
example) in the plant C002 with the procurement type as F
andspecialprocurementasU(Stocktransfer)andthespecial
procurement plant as C001. Normally when creating the
special procurement key use Z,Y or X to the Key number, so
insteadofhavingKeynumberas12,wecouldhavesomething
likeZ2orYAetc.

FigMRPConfig3


SimilarlyforWithdrawalfromAlternateplant,youcouldhavea
Configurationasbelow:

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FigMRPConfig4


SimilarlyforSubcontracting,youcouldhaveaConfigurationas
below:

FigMRPConfig5



Similarly for Production in alternate plant, you could have a
Configurationasbelow:

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FigMRPConfig6




g)ConversionforPlannedorders


Inthisconfigurationparameter,youcanmaintaintheproduction
ordertypeortheprocessordertype,which thesystem should
use as default during the planned order conversion. Setting
defaultsintheplantparametersconfigurationallowsthesystem
tofixandselecttheordertypeforaplantduringtheconversion
process.

Note: This can be a useful tool when you are using one
productionordertypeandoneprocessordertype,butifyouare
usingmultipleproduction/processordertypes,thenyoushould
notbemaintainingdefaultshere.

Also for the purchase requisition conversion, you are given an
option in the configuration to define the maximum number of
plannedordersthatcanbeconvertedintoPurchaserequisition.

FigMRPConfig7




g)DependentRequirementsavailabilitycheck


When carrying out the availability check for each of the
components in a MRP BOM explosion, the system needs to
know the availability checking scope rule. Again we would
maintain the standard Checking rule as PP or you could
alternativelyconfigureoneforyourselves.




h)BOM/RoutingSelectionID

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This configuration parameter is really important and it is
mandatorytomaintainone,sinceithelpsselectionofBOMand
tasklistsintheplannedorders.Thoughthereisonemoreplace
intheplannedorderSchedulingparametersMRPconfiguration,
where you can maintain the selection ID for selection of the
Tasklists(Routing/Recipe/RateRouting).

A selection procedure is set to select BOM or Routing/Recipe
onprioritiessetfortheBOMusageorforthetasklisttypesand
thetaskliststatus.Knowingtheselectionproceduresallowsthe
MRP run to select the right BOM and task list for the planned
orders.

Inotherwords,youcouldhavetheBOMSelectionbeingsetfor
selection of the Production BOM Usage first and if a BOM for
the material with the Usage production (Usage = 1), is not
found, you could have the system search for a BOM of
universalUsage(Usage=3).

Similarly,youcouldhaveatasklistoftypeRoutingorRecipeor
reference operation sets selected and set in priorities of
selection (1st Routing, 2nd Reference operation sets, 3rd,
which has a Status Released for all purposes or released for
costing)etc.




h)SchedulingofPlannedorders


This configuration parameter is really important and it is
mandatory to maintain one. It allows you to set the control
parameters for scheduling of planned orders of type LA at a
givenplantandforagivenMRPController.Youcanleavethe
MRPcontrolleras*tohavetheschedulingparameterstruefor
alltheplannedordersacrossalltheMRPcontrollers.

Thefollowingcontrolparameterscanbeconfiguredhere:


The Routing/Recipe Selection ID, specifying the
routing/recipethatwouldbeselectedfordetailedscheduling,
aspertheprioritiessetfortasklisttypeandtaskliststatus.

The Detailed scheduling, using the task list is only
carried for the scheduling Horizon mentioned, i.e., if the
planned orders dates lie beyond the scheduling horizon,
then the basic date scheduling is used where the in house
productiontimesfromthematerialmasterisused.

AllowSchedulingIndicatorallowstheplannedorders
tobescheduledusingthedetailedschedulingorbasicdate
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scheduling,eitherofthetwo,dependingupontheavailability
of the task list and scheduling type selected for the MRP
run.

Generate Capacity requirements indicator allows
generationofthecapacityrequirementsfortheworkcenters
andloadsthemaccordingly.Theloadingoftheworkcenters
isaspertheuseoftheworkcenterdeterminedthroughthe
schedulingcarriedout.

TheTasklistselection,schedulinghorizon,scheduling
indicator and the capacity indicator can also be set for
roughcutplanningusedforLongtermplanningpurposes.

The next configuration parameter talks about the
configuration of the selection of the type of scheduling
level that should be used for adjusting the basic dates of
planned orders. The various options available are rate
based scheduling, lead time scheduling, scheduling using
takttimes.

TheAdjustplannedorderdatesconfigurationoption
allows you to readjust the scheduling results or the basic
dateseverytimeyoucarryoutScheduling.Thoughthereis
one more scheduling configuration option provided by the
system for overwriting/adjusting the existing basic dates by
the new dates arrived at, through rescheduling (using the
schedulinglevelasmentioned).

The system not only offers an option to adjust the basic
dates for the planned order arrived at by using the
scheduling level set, but it also setting the dates of the
dependent requirements to the operation start date or the
orderstartdate.

This configuration not only adjusts or sets the dates of the
header planned order and the dependent planned orders,
butitalsogeneratescapacityrequirementsforthesame.

See below for the details of adjusting dates in scheduling
andadjustingdatesforcapacityrequirementgeneration:


You can adjust the Basic Dates of the header
planned order using the scheduling level and adjust
(orset)thedependentrequirementstothestartofthe
headerplannedorder

You can adjust the Basic Dates of the header
planned order using the scheduling level and adjust
(orset)thedependentrequirementstothestartofthe
respective operation to which the dependent
requirementsareassignedto

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YoucandecidenottoadjusttheBasicDatesof
the header planned order arrived at by using the
scheduling level and at the same time notadjust (or
not set) the dependent requirements to the start of
theheaderplannedorder

YoucandecidenottoadjusttheBasicDatesof
the header planned order arrived at by using the
schedulinglevelandatthesametimenotadjust(not
set) the dependent requirements to the start of the
respective operations to which the dependent
requirementsareassignedto


You are also provided an option to configure the
scheduling type whether forward or backward
scheduling. It is a normal behavior for the standard system
to have this configured as backward scheduling so that
SAPMRP(materialrequirementplanning)nevermissesthe
customerdeliverydateororderavailabilitydate.Anoptionis
also provided to nottoschedule, any orders during the
breakssetinthefactorycalendar.

Startdateintheinthepastoptionsallowsyoutopush
the start date of the planned orders to a certain number of
daysinpast.Iftheorderstartdategoesbeyondthenumber
of days allowed, then the system uses the concept of
todays scheduling and sets the start date of the planned
order to todays date and carrying out forward scheduling
thereafter.

One of the scheduling parameters is reduction
measures, used to reduce the total order lead time in
circumstances designed. You can avoid configuration of
reductionmeasures,ifyouarenotusingit.

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FigMRPConfig8




i)DefaultValuesforExternalProcessing


Forexternalpurchasing,onecanmaintainthedefaultleadtime
required for conversion of Purchase requisition into purchase
order,usingtheplanneddeliveryleadtimesfromthepurchase
inforecordorpurchasingagreement.Soastousetheplanned
delivery times from the purchase info record, one should also
maintainthesourcelistforthematerial,withthesamevendorin
thesourcelistandthepurchaseinforecord.

Using the planned delivery times from the material master or
frompurchaseinforecord,istotallyadecisionoftheconsultant.
It is indeed a nice additional option provided by SAP for using
theleadtimefrominforecords.




j)PlanningHorizon


Maintaining a planning horizon helps the system to plan only
thosedemands,whichfallintheplanninghorizonstartingfrom
today. When an MRP Run is taken, the planning horizon is
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number of work days as mentioned (lets say 180 days) from

todaysdatethesystemwouldnotplananyorderswhosestart
dateliesbeyondthishorizon.




k)Availablestockfornetrequirementcalculations


SAP MRP offers you a choice to select the most controversial
stocktypes,initsnetrequirementcalculations.Thestocktypes
arestockintransfer(stockintransferisconsideredasstock
at the receiving plant as it is already issued from the sending
plant), blocked stock, restricted batch stock (stock of batches
markedwithrestrictedbatch)

FigMRPConfig9




l) Option to trigger direct Production in MRP or in
productionplanning



j)Allowingstartdateinthepast

MRPGroupLevelconfigurationforMRP

MRPGroupLevelconfigurationforMRP


The entire configuration that is created as a part of SAP MRP
Plantlevelparameterintheabovestepscanbealsosetforan
MRPGroup.YoucangroupmaterialsusingMRPGroups.Each
of the MRP Group can have its own MRP Parameter set.You
cansettheMRPgroupinthematerialmasterMRP1View.

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MRPGroupcanbemaintainedusingtransactioncodeOPPRor
the transaction path Logistics > Production > MRP > MRP
Groups>


AdvantageofworkingwithMRPGroups:


Working with MRP groups can be convenient for a plant or an
organization, since by assigning the MRP groups to a set of
materials, would allow planner to configure these materials
(through MRP Groups) to behave in a certain manner for
planningpurposes.Inotherwords,allthematerialsinthegroup
wouldthenhaveauniqueplanningmethodoruniqueplanning
features. Thus the organization can device multiple MRP
groups with their own planning features and characteristics
ratherthanhavingonesetofplanningfeaturessetattheplant
level.Thegroupcouldhaveitsownunique:

Strategygroup,
Conversionordertypes,
Planninghorizon,
Planningtimefenceandrollforwardperiods,
BOMandtasklistselectionIDs,
Directprocurementparameters,
Plannedorderschedulingparameters,
Startnumberofdaysallowedinthepast
Availabilitycheckinggroups,



StrategyGroups


The strategy groups can be set for a given MRP group at a
given plant. The strategy group consists of a number of
planningstrategiesassignedinasequenceofpriorities.Inother
words, the strategy groups, groups together the relevant
planning strategies of a material. If you dont see the default
strategy groups, then we would have to manually maintain the
strategy groups on the materials MRP 3 view. Defaulting the
strategygroupsisaniceideawhenthestrategygroupswould
remain the same across all the materials which would be
assignedwithagivenstrategygroup.


Forexample:

A material can have the priority 1 strategy as MadetoStock
(planning strategy 40) and then priority 2 planning strategy as
MadetoOrder (planning strategy 20). Assigning this strategy
group for a MRP group in the MRP Group Parameters
configurationandthensubsequentlyassigningtheMRPGroup
to the material master would make the material work on a
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planningstrategy40andplanningstrategy20inasequenceof
priority.

The primary strategy for the material is 40 Madetostock
while the secondary strategy is 20 Madetoorder, which
meansthateverytimeyouplanorproduceamaterialorcreate
a sales order for the material it will always primarily work as a
madetostock material. Nevertheless, you can also make to
material work as a madetoorder material, by changing the
requirement type KE of the material in the sales order
procurement tab, to suit for madetoorder, which the system
wouldallowsincethematerialssecondaryplanningstrategyis
madetoorder.



ConfiguringSAPMRPTypes

ConfigurationofSAPMRPTypes


In all probabilities, MRP Types is not something which one
shouldconfigureinSAPitisusedasastandardconfiguration.
Nevertheless,aconsultantshouldknowtheimportanceofMRP
typesandtheinvolvedpreconfiguredparameters.

FigMRPConfig10

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a)MRPProcedures


MRPProceduresdefinesthetypeofMRPtobeusedReorder
point planning methods, Material requirement planning or
demand based planning methods, Forecast based planning
methods, Time phased planning methods, MPS and the no
planningprocedurestomarkamaterialwith aMRP types that
doesnotplanamaterialatall.



b)FirmingType


In the category of MRP procedure called MRP or demand
based planning method and MPS, SAP offers 8 different MRP
typeswithFirmingnamelyP1,P2,P3,P4andM0,M1,M2,M3,
M4.


When working with the planning time fence, one needs to set
the firming methods & the scheduling methods of the
procurementproposalswithintheplanningtimefence.

0 1 2 3 4
Firmingtype

M0 P1 P2 P3 P4
MRPTypes M1 M2 M3 M4


Firming Methods for Procurement Proposals in the Planning
timefence

No Firming of Procurement X
Proposals within the planning
timefence

Automatic Firming of X X
Procurement Proposals within
theplanningtimefence

Manual Firming of X X
Procurement within the
planning time fence (No
Automatic Firming of the
procurementproposals)


Treatment with New Order Proposals in the Planning time
Fence

Automatic Creation of New X X
Procurement Proposals to
cover the shortages within the
planning time fence. But the
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dates of these new

Procurement Proposals are
pushed outside the planning
timefence

No New Procurement X X
ProposalscreatedtoCoverthe
material shortages within the
planningtimefence





c)IncludeExternalRequirements


The inclusion of external requirements in net requirement
calculations is available to be set, when you are working with
reorder point planning based MRP types.Actually there are 2
options in this field, i.e., include external requirements in the
total planning horizon or restrict the inclusion of the external
requirementsonlywithinthereplenishmentleadtime.

Forexample:

Iftheexternalrequirementsaresettobeconsideredinthetotal
horizon(of7weeks)theninthetodaysMRPrun,theCustomer
demandwillbeconsideredasitfallsintheplanninghorizonand
itwillreducethewarehousestockproportionatelywhichwould
trigger the reorder point planning procurement once the stock
fallsbelowthereorderpoint.

If the external requirements are set to be considered in the
Replenishmentleadtime,letssaytheReplenishmentleadtime
is 1 week, then in that case, only in a MRP run triggered one
week before the start date of the external demand, this
customer demand will be considered, thus triggering reduction
inwarehousestocks.

FigMRPConfig11

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SAP also offers an option to select the additional external

requirements that should also be included in the net
requirement planning calculations like the components
supplied to the vendor in a subcontracting case, reservations
set for the components in a production order, reservations of
components in plant maintenance orders, requirements to
satisfy the Stock transfer order to another plant, stock transfer
requisitions created for Stock transfer orders, requirements
raisedbecauseofstocktransferdeliveryschedules.



c)ForecastingforMRP


Forecasting MRP Types have a forecasting indicator as
obligatory, unlike other MRP types which normally have the
forecastingindicatorsettooptional.


Alsothehistoricaldataisupdatedinthematerialmasterastotal
consumption (planned consumption plus unplanned
consumption) or unplanned consumption. When the
consumptionisplannedaspertheMRPreservations,planned
consumption is updated and when the consumption is not
plannedasperthereservationorisgreaterthanthereservation
quantities,thenunplannedconsumptionisupdated.

InMRPtypeconfiguration,youhaveanoptionofchoosingthe
type of historical consumption of a material to be used for
planning whether total consumption (planned + unplanned
consumption)orunplannedconsumption.

After choosing the historical date type, you should configure,
the type of forecast requirements to be considered in MRP
planningrun,whethertotalconsumption(planned+unplanned
consumption)orunplannedconsumption.

The reduction method for forecast requirements is also
configurable.Thedefaultisreductionbyconsumption.



d)Planningmethod


The MRP type offers you to plan the materials in an external
system,liketheMRPTypeX0.Theindicatorcalledtheplanning
method allows you to choose external planning so as to plan
materialsintheexternalsystem.



e)AutomaticCalculations

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Youcanhavethesafetystockandthereorderpointcalculated
automaticallybythesystem,whenyouareusingtheautomatic
reorder point planning methods. In the automatic calculations
thesystemusestheforecastdata.

ConfiguringSAPMRPScopeofPlanningfortheTotalPlanningRun

Configuring SAP MRP Scope of Planning for the Total
PlanningRun


SAP provides an option to plan multiple plants together or
multiple MRP areas in one planning run in a sequence.
Transaction code OM0E can be used for configuration or the
logical SAP path SAP Customizing Implementation Guide >
Production > MRP > Planning > Define Scope of Planning for
TotalPlanning,canbeusedtoconfigure.


Step1DefinetheNameoftheScopeofplanningrun


Step2DefinetheplantsorMRPareastobeincludedinthe
planningrunarrangedinasequence.Thesequenceisdefined
bythefirstfieldcalled


ConfiguringSAPMRPPlanningtimefenceandRollForwardPeriod

Configuring SAP MRP Planning time fence and Roll
ForwardPeriod


The transaction path to configure the planning time fence and
rollforwardperiodis:SAPCustomizingImplementationGuide>
Production > Material Requirements Planning > Planning >
MRPAreas > MRP Calculation > Define PlanningTime Fence
andRollForwardPeriod



PlanningTimeFence:


The planning time fence is the number of work days, within
which you can protect the master plan (or in other words the
procurement proposals of a master plan) from being disturbed
orchangedfromanyautomaticchanges(ofanMRPRun).The
procurement proposals are firmed so as to protect them from
any changes. The firming of the procurement proposals
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(planned orders, purchase requisitions, delivery schedules) in

theplanningtimefencepreventstheproposalsinthetimefence
frombeingadoptedinthenextplanningrun.

Inotherwords,intheplanningtimefence,thesystemdoesnot
createordeleteanyprocurementproposalsnordoesitchanges
theexistingproposals.

Thesystemcalculatesthetimefencefromtodaysdateplusthe
number of days mentioned as planning time fence in the
material master or in the MRP configuration (where you can
define the planning time fence for plant or for a given MRP
group).Itisneedlesstosaythatanynewrequirementsarenot
included in this time period nor the existing requirements are
changed. MRP carries its usual planning outside this fence
withoutinterruptingthisfencedperiod.


ConfigurePlanningTimefenceandRollForwardPeriod

Plant MRPGroup Planning Time Roll forward
fence Period
0001 0001 14 3
0001 0002 14 2


It is logical that any procurement proposal lying outside this
fencewouldstartmovingintothefenceonebyonewhenthe
fence moves ahead on the time scale. When they move in to
thisfence,theyareautomaticallyfirmedforprotection.


Firmingforautomaticallycreatedprocurementproposals:


The automatically created procurement proposals in the MRP
Runarenotfirmedbythesystem,sothattheyareavailablefor
adjustingdatesandquantitiesinthenextplanningrun,incases
wherethereischangeinBOMortasklist.

Youcanthoughmanuallyfirmtheplannedordersindividuallyor
collectivelyusingtransactioncodeMD19

Note Automatically created planned orders in the planning
timefenceareonlyremainfirmtilltheyareintheplanningrun.



Firmingformanuallycreatedprocurementproposals:


For manually created or changed procurement proposals or
even when you reschedule the planned order in the graphical
planning table, the system always marks them with a firming
indicator. Though you can remove or delete this firming
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indicator.



Firmingforcomponentsplannedorders:

Incaseofaplannedorder,youcanmanuallyfirmitbyselecting
the firming planned order Indicator in the planned order
header.And in order to make sure that the BOM levels below
arenotexplodedorchangedinaplanningrun,youhavetoset
thefirmingcomponentsindicator

SeethebelowExamplePlanningtimefenceis3days.


Planning
Start
Date
Today Day2 Day3 Day4 Day5 Day6 Day7
Day1
Planningtimefence
Planned Planned Planned Planned Planned Planned Planned
Order1 Order2 Order3 Order4 Order5 Order5 Order6
Auto Auto Auto Not Firmed Not Not
Firmed Firmed Firmed firmed firmed firmed
Next
Planning
Start
Date
Planningtimefence
Planned Planned Planned
Order4 Order5 Order5
Auto Auto Auto
Firmed Firmed Firmed



RollForwardPeriod


The Roll Forward Period adds the functionality of automatic
deletionoffirmedplannedorders,fromthemasterplan.Italso
creates new proposals to cover any requirements pending
during the MRP run.This period can be defined for number of
days in past or future. The system deletes all the firmed
plannedordersthatliebeforetherollforwardperiod.

Using the roll forward period, you can have the system delete
all useless old firmed planned orders, which otherwise the
system would never had deleted, since they were firmed.This
allowsforreorganizingtheplannedorders.


ConfiguringSAPMRPAreas

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ConfiguringSAPMRPAreas


Long ago, SAP MRP was only at the plant level or at MRP
controllerlevel(activatedthroughauserexit).ThenSAPcame
up with the concept of running MRP at MRP areas. You can
define your own area for which you want to run MRP without
disturbingotherareas.


Running MRP for MRP Areas: For running MRP at a MRP
area, you would have to create a scope of planning in MRP
configuration, which contain the MRP area or a set of MRP
areasarrangedinsequenceofplanning.


Assigning MRP areas: To have the MRP Areas work, you
havetoactivatetheMRPareasandthencreatethemandthen
assignthemtothematerialmasterMRP1view.IfaMRParea
isnotassignedtothematerial,thenitwillworkaspertheplant
levelMRParea.


ConfiguringMRPareas

Step 1: Activate MRP Area: Use the transaction path: SAP
Customizing Implementation Guide > Production > Material
RequirementsPlanning>MasterData>MRPAreas>Activate
MRPforMRPAreas

Step 2: Define MRP Areas: Use transaction path: SAP
Customizing Implementation Guide > Production > Material
Requirements Planning > Master Data > MRPAreas > Define
MRPAreas




TypesofMRPAreas:


Plant MRP Areas: You can create one MRP area for several
plants, so that when you run the MRP for this MRP area, the
runisforalltheplantsconfiguredintheMRParea.

Storage Location MRP Areas: You can create MRP areas for
several storage locations at a plant. You cannot use one
storagelocationinmultipleMRPareas.

Subcontractors MRP Areas: You can create MRP areas for
several subcontractors for a plant. You cannot use one
subcontractorinmultipleMRPareas.


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ConfiguringSAPMRPDynamicSafetyStock(RangeofcoverageProfile)

Configuring SAP MRP Dynamic Safety Stock (Range of
coverageProfile)


The Range of coverage profile is configured for the use
of Dynamic safety stock for a given material. The range of
coverage configuration contains the parameters for the
calculation of the dynamic safety stock. The dynamic safety
stock is a stock calculated based on the average daily
requirements for a period rather than the actual requirements
overtheperiod,thereforeitismorestatisticalvalueratherthan
anabsolutevalue.


Safetystockasweknowisusedtocoverthefluctuationsinthe
requirements, so is the dynamic safety stock, the only
differencebeing,thesafetystockisanabsolutevalueprovided
directly for a material whereas the dynamic safety stock is
calculated by the system on the basis of the coverage period
andaveragedailystockcalculatedinternallybythesystem.


TheDynamicsafetystockiscalculatedineveryplanningrun.

The transaction path is: SAP Customizing Implementation
Guide > Production > Material Requirements Planning >
Planning > MRP Calculations > Define Range of Coverage
Profile(DynamicSafetyStock)


RangeofcoverageConfiguration:

FigMRPConfig12

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Configuration for calculation of average daily requirement
foraperiod


Period indicator Indicate the type of period, whether week or
monthoraccordingtoPPplanningcalendar.(LetssayitisW
Week)


Number of Periods Number of periods used to calculate the
averagedailyrequirements(Letssayitis13Weeks)


Type of Period length It defines the number of days in the
period, if the period length is in terms of workdays, then the
factorycalendarworkdaysareconsidered,iftheperiodlength
is in terms of calendar days then it is considered in terms of
Gregoriancalendar,andifitistermsofstandarddays,thenyou
would have to enter the number of days in a period in the
configuration (Lets say that the configuration was done with
workdaysandthefactorycalendarhas7daysperweek)


ThereforeAveragedailyrequirement=

= Requirements in the period (Requirements in 13 Weeks
Letssay910Units)/(NumberofPeriodsLetssay13Weeks)
*(NumberofdaysintheperiodLetssay7days)

=910/(13*7)

=10Units



ConfigurationparametersforcalculationofDynamicSafety
StockfortheRangeofCoverage


You can define 3 different range of coverage minimum,
maximum, and target range of coverage, which is used to
calculate 3 different stocks using the average daily
requirements (range of coverage multiplied by the period
length). The Target range of coverage defined here would be
usedtocalculatetheDynamicSafetyStockfortheperiodofthe
coverage.

The Period of the coverage is specified in the configuration.
Thecoveragesandtheperiodsforwhichtheyshouldworkfor,
are defined for 2 separate period lengths and the 3rd period
lengthisfortherestofhorizon.

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In the example, we have defined the safety stock to cover a

period of 7 days (minimum, target and the maximum range of
coverage). The minimum, target and the maximum stock is
calculatedfortheaveragedailyrequirementovertherespective
coverageperiods.

You can check the minimum, maximum, target stock levels,
minimum range of coverage, maximum range of coverage,
targetrangeofcoverageintheMRPListorStockrequirements
listsPeriodTotalDisplaySection.

As per our example, for the first period of 13 weeks, all the 3
stocks levels minimum, maximum, and target stock levels
wouldbe70Unitsandforthenextperiodof26weeksitwillbe
70unitsaswellandfortherestofthehorizonitwillbe70units
again.

Normally when the available stock falls below the minimum
stock level, SAP planning run, would immediately create
planned orders to suffice at least the target stock level. For
example if the minimum stock level is 30 and the maximum is
80andthetargetstockis50units,theniftheavailablestocks
fall below the 30 units mark, SAP creates a procurement
proposal for 50 units to reach back to the target stock level.
Whereas in the example below, all the 3 stocks types are 70
units, therefore when the stocks fall below the 70 units, the
systemwilltrytoraiseaprocurementproposaltoreachbackto
70units.


Asperourexampleintheconfigurationscreenshot


Dynamic Dynamic
Dynamic safety safetystocks safety stocks Dynamic
stock formula for the 1st for the 2nd safety stocks
summarized as period of 13 period of 26 fortherestof
= Average weeks weeks theHorizon
Daily Stock *
Range of
coverage

70Units 70Units 70Units
Minimum
safetystock

70Units 70Units 70Units
Target safety
stock

70Units 70Units 70Units
Maximum
safetystock

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AnotherExampleofDynamicSafetyStock

FigMRPConfig14


Stepa)Demandfor8Weeks=800


Stepb)AverageDailyRequirements

= 896 Units of Demand for 8 Weeks / (8Weeks * 7 Days Per
Week)
=896/(8*7)
=896/56
=16Units


Stepc)CalculationofSafetyStockforthecoverageperiod

Asperourexampleintheconfigurationscreenshot

For the first period, when the stock falls below 32 units
(minimum Stock Level), the SAP MRP run would create the
procurementproposals(LetsSayplannedorder)foraquantity
to suffice at least the target safety stock level or the dynamic
safetystocklevel=8Units.


Dynamic safety Dynamic Dynamic Dynamic
stock formula safety safety stocks safety stocks
summarized as stocks for for the 2nd fortherestof
= Average the 1st period of 8 theHorizon
Daily Stock * period of 8 weeks
Range of weeks
coverage

=2*16=32 =2*16=32 =2*16=32
Minimum
safetystock
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=5*16=80 =5*16=80 =5*16=80
Target safety
stock

=7*16=112 =7*16=112 =7*16=112
Maximum
safetystock




ConfiguringSAPMRPDay'sSupplyandReceiptDay'sSupply

Configuring SAP MRP Day's Supply and Receipt Day's
Supply


The days of supply is not a mandatory configuration, you can
only configure the days supply if you feel the SAP pre
configuredonesarenotwhatyouwant.

SAPoffers2typesofevaluationsinSAP,thedayssupplyand
thereceiptdayssupply.

In the SAP MRP Evaluation transactions such as stock
requirementlistorMRPlist,thedayssupplywouldcalculatethe
number of days on the time axis, till the material requirements
canbesatisfiedpurelybythecurrentavailablestock.

WhiletheReceiptDayssupplywouldindicatehowlongwould
the current stock and the expected receipts would cover the
requirements. There are 2 receipt days supply evaluations
offeredbySAPcalledasthereceiptdayssupply1andreceipt
dayssupply2.SAPoffersaconfigurationtoselectthereceipts
elements for receipt day supply 1 and 2 evaluations. There is
also an option to have the receipt days supplies to be
calculatedwhenthestocksfallbelowthesafetystockorbelow
thecurrentavailablestocks.

The days supply values or the receipt days supply values can
be correlated with the range of coverage concept.These tools
comes with traffic lights red, yellow and green which offer
warnings to the MRP Controllers/users and lets him/her
strategically know when the material stock would be totally
consumed out, which would help the planner to foresight and
takenecessaryactionsinadvance.

The transaction path for the same is SAP Customizing
Implementation Guide > Production > Material Requirements
Planning > Evaluations > Define Receipt Elements for Receipt
Days'Supply


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FigMRPConfig13




Days Receipt Receipt
Number of Days Stocks will Supply Days Days
CovertheRequirements Supply Supply
1 2

ConsiderCurrentStocksonlyincalculationofDaysSupply

X
Only Consider Current available
StockstocoverRequirements


Consider Receipts also along with Current Stock in
CalculationofDaysSupply

Firmed Planned orders, Planned orders assigned with Production
versions, Purchase orders, Schedule lines, Firmed Purchase
Requisitions,ReceiptReservations,ShippingNotifications

X
Consider all the possible receipt
elementsalongwiththeplantstock

ExampleFirmedPlannedorders,
Planned orders assigned with
Production versions, Purchase
orders, Schedule lines, Firmed
Purchase Requisitions, Receipt
Reservations,

X
Consider all the Most Certain
receipt elements along with the
plantstock

Example Production order,
Shipping Notifications, QM
InspectionLots

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ExampleforDaysSupplyandReceiptDaysSupply:



DaysSupplyforMaterialM1onToday=3days
(Receiptsarenotconsidered)

Day Requirements AvailableQty
StockBalanceLeft
aftercovering
Requirements

Today 20 CurrentStock 10020=80
=100
2nd 30 Stock 8030=50
Day Available=80
3rd 50 Stock 5050=0(Stock=0)
Day Available=50
4 th 52
Day
5th 40
Day
6th 20
Day

DaysSupplyonToday=CoveragesConsideringwithoutthe
receipts=3DaysExactly




ReceiptsDaysSupplyforMaterialM1onToday=Alittle
morethan4days
(ReceiptsarealsoconsideredThisexamplecanbeforReceipt
Dayssupply1or2)

Day Reqmts Expected Available
Receipts Stock Stock
BalanceLeft
aftercovering
Requirements

Today Available (100+15)20
20 Firmed =100 =95
Planned
order=10
Production
order=5
Total
Receiptson
day=15

2nd (95+0)30
Day 30 Total Available =65
Receiptson =95
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day=0


3rd (65+25)50
Day 50 Production Available =40
order=25 =65
Total
Receiptson
day=25


4th
Day 47 Planned Available (40+13)47
order=8 =40 =6
Production
order=5
Total
Receiptson
day=13

5th Available (1+5)40=
Day 40 Planned =6 34
order=5 Shortage
Total
Receiptson
day=0


6th
Day 20

ReceiptDaysSupplyonToday=CoveragesConsideringthe
receipts
=51+(6/40)=4+0.15=4.15Days







NextStep>>>CreationofMaterialMasterMRPViewsandAssignmentofMRP
Types

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