Process flow for Material Requirements Planning

with MRP Areas

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 Created by Keerthi P, last modified on Dec 21, 2012
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Introduction

This wiki aims at providing an overview of Process flow for Material Requirements Planning with MRP Areas and the key
configuration required for the same.

MRP Area

 MRP Area can be defined as an organizational unit in which material requirements planning can be carried out individually.
 The different types of MRP Areas that can be defined and planned independently are Plant MRP Area, MRP Areas for
Storage Locations and MRP Areas for Subcontractors.

MRP Without MRP areas

 Without MRP Areas, MRP takes place at plant level.

 MRP considers all the requirements for a material such as dependent requirements, planned independent requirements,
customer requirements etc., for all storage locations, which are not planned separately or are not excluded from the
planning.
 The MRP settings defined for the Material are valid for all the storage locations within the Plant except for the storage
locations that are excluded from the planning.

Planning with MRP areas

 Each MRP area is planned separately.

 Storage Location MRP area can be defined for an individual Storage location or collectively for a group of Storage locations
which can be planned independently from the Plant MRP area.
 Subcontractor (Vendor) stock can be planned separately with MRP area for a subcontractor
 Evaluation of the Planning results which Stock/Requirements List (MD04) and MRP List (MD05) can be done individually for
each MRP area.
 MRP Area facilitates the option for setting different MRP parameters (E.g.; MRP Type, Lot size, Special Procurement etc.,)
from that of Plant MRP area.

Process flow for MRP with MRP Areas

These process steps describe the configuration needed and the master data that is to be maintained in order to be able
to carry out material requirements planning at MRP area level.

1. Conversion of Planning File Entries

2. Activation of MRP for MRP Areas
3. Defining MRP Areas
4. Assignment of MRP Areas to Materials
5. Planning Material Requirements with MRP Areas

1. Conversion of Planning File Entries

 In order to use MRP areas in materials requirements planning, conversion of the existing planning file at Plant level to the
new planning file at MRP area level needs to be carried out using a report in IMG activity ‘Convert planning file entries for
MRP areas’.
 Key functions carried out with the report:

- System creates a plant MRP area for every plant

- Individual planning file entries at Plant MRP area are converted to individual file entries at MRP

area level.

Transaction Code: OM0F

Navigation: SPRO > Production > Material Requirements Planning > Planning File Entries > Convert Planning File Entries
for MRP Areas

 Enter X and execute

 2. Activation of MRP for MRP Areas

 In the IMG activity Activate MRP for MRP areas, set the MRP area active indicator.
 Navigation: SPRO > Production > Material Requirements Planning > Master Data > MRP Areas > Activate MRP for MRP
Areas

 Activate MRP area active indicator

 3. Define MRP Areas

 Type 01 for Plant

The plant MRP area initially contains the plant together with all its storage locations and stock with subcontractors.

With storage locations MRP Areas and MRP Area for subcontractors which are planned separately, the plant MRP area is
reduced by the same number.

 Type 02 for Storage Locations

Storage location MRP areas consist of one or more number of storage locations.

A storage location can be assigned to only one MRP area.

 Type 03 for Subcontractors

Used to define an MRP area for a subcontractor.

Only one subcontractor can be assigned to an MRP area of the type subcontractor.

Same subcontractor cannot be assigned to another MRP area.

Navigation: SPRO > Production > Material Requirements Planning > Master Data > MRP Areas > Define MRP Areas
 Plant MRP Area (Type 01)

Storage Location MRP Area (Type 02)

 Select New entries and create MRP area SLOC 0001 with MRP area type 02 as shown
 Subcontractor MRP Area (Type 03)

 Create MRP area Subcon MRP with MRP area type 03 with New Entries
 Select Subcontractor for assignment
 4. Assign MRP Areas to Materials

 A material can be assigned to one or more MRP areas by creating a segment for each MRP area.
 For each MRP area, individual MRP and forecast parameters can be defined which are different from those defined in the
material master at plant level
 MRP Areas are assigned in MRP1 View of Material Master

Material Master – MRP1 View

Assign MRP areas SLOC 0001 & SUBCON MRP and select Check for MRP Segment details or Adopt to confirm the
assignment

MRP Area Segment Details

 If needed, individual MRP and forecast parameters can be defined for each MRP Area

5. Planning Material Requirements with MRP Areas

 Requirement for the Materials within Storage location MRP Area can be defined by entering PIR in

MRP Area or by assigning a storage location in a sales order.

Transaction code: MD61

Stock Requirement List for Plant MRP Area before MRP Run

Transaction code: MD04

Stock Requirement List for Storage Location MRP Area before MRP Run

MRP Run at Plant Level (MD02)

Note: Scope of Planning needs to be configured for Total Planning run (MD01/MDBT) to be carried out.

Stock Requirement List after MRP Run

MRP Run at Storage Location MRP Area level

 Stock Requirement List after next MRP Run

Business Requirements Met:

The following key business requirements can be met

1. Material Requirements Planning with different MRP parameters can be carried out to suit different business scenarios.

2. Focus on important parts procured externally and produced in-house.