Introduction SAP Material

Planning
Dr. Djamal Ziani
King Saud University
 Organizational Level in Material
Planning
Client
Company code
Plant
Storage location
 Master Data Used
Material Master
Bill Of Material (BOM)
Routings
Material Master
 Material Type
Raw materials
Operating supplies
Semi-finished products
Finished products
 Bill of Material (BOM)

The BOM contains the assemblies or components, to be included in the

production of a material.
Used in MRP, production, procurement and for product costing
 Bill of Material (BOM)

The BOM are single level.

The items of the BOM can themselves contain further BOM
 Bill of Material (BOM)

Plant: is the plant for which you wish to create or process the BOM. You can
assign more than one plant.
Alternative BOM: For distinguish the different BOM for the same material
BOM usage: Where you want to use the BOM (production, engineering,
costing)
 Routings
Routings contain the steps that are necessary
for production:
The corresponding operations
The sequence
Work center in which these operations are to be
executed
Time elements that are relevant for scheduling the
operations
Routings
 MRP: Material Requirement Planning
The system calculates the quantity required to continue the sales of the
final product without any delays, considering the following resources:
Stock on hand.
Receipts: purchase orders, production orders (for the parent item)
The system then subtracts the following requirements:
Sales orders
Forecasts
Production orders (for the child items)
A/R reserve invoices
The system uses the planning policy to make the production/purchase
order recommendations. The planning policy is based on:
Lead time, Minimum amount ,, Time intervals

Complete production orders for the parent item, quantities of the child
items that comprise the BOM are needed. The system calculates the
quantity of the child items, taking the MRP-dependent requirements into
account. The system then recommends purchase/ production orders for the
child items required for producing the parent item.
MRP: Material Requirement Planning
MRP
 MRP-Processing Key
NEUPL : Regenerative Planning. It will process ALL materials,
disregards the fact whether or not planning relevant changes
were made to the material.

For NETCH and NETPL: the system take into consideration

only changes that are relevant for planning a material (like
sales order entry, purchase order entry, stock release, etc.).
NETCH : Net Change Planning
NETPL : Net Change Planning within Planning Horizon. if a change
occurs outside the planning horizon (e.g. a sales order is entered 2
months away and your planning horizon is 6 weeks), then the material
is not included in MRP even though there is a change.