MRP
Quick answer
MRP ties PP to MM (purchase requisitions for components) and sales/forecasts (demand).
Key takeaways
- MRP nets demand (sales orders, forecasts, dependent demand from BOMs) against supply (stock, open orders) and, where there is a…
- Demand & supply elements that MRP nets.
- Lot-sizing and safety stock.
- Watch out: Bad master data (BOMs, lead times), wrong plans.
What MRP does
MRP nets demand (sales orders, forecasts, dependent demand from BOMs) against supply (stock, open orders) and, where there is a shortfall, proposes replenishment: purchase requisitions for bought materials and planned orders for manufactured ones. It plans the whole multi-level supply chain to ensure materials are available when needed, without excess.
Key concepts
- Demand & supply elements that MRP nets.
- Lot-sizing and safety stock.
- Planned orders → production orders / purchase requisitions.
- MRP run (classic MRP or S/4HANA MRP Live on HANA).
Integration
MRP ties PP to MM (purchase requisitions for components) and sales/forecasts (demand). It reads BOMs (dependent requirements) and stock, and its output drives procurement and production. In S/4HANA, MRP Live runs on HANA for far faster planning. Accurate master data (BOMs, lead times, stock) is essential for good MRP results.
Common pitfalls
- Bad master data (BOMs, lead times), wrong plans.
- Ignoring safety stock/lot-sizing settings.
- Not converting planned orders, plans not executed.
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Check your understanding
Which statement is true of MRP?
- A. It plans the whole multi-level supply chain to ensure materials are available when needed, without excess.
- B. SAP is the global market leader in enterprise resource planning software by revenue, and its dominance among…
- C. These API examples show calling SAP over its interfaces, an OData request, a BAPI call, illustrating how…
Show answer
A. It plans the whole multi-level supply chain to ensure materials are available when needed, without excess.
Covered in the “What MRP does” section of this lesson.
Which of these also applies to MRP?
- A. Following steps without understanding the concept.
- B. It reads BOMs (dependent requirements) and stock, and its output drives procurement and production.
- C. Assuming one is universally better, fit depends on your needs.
Show answer
B. It reads BOMs (dependent requirements) and stock, and its output drives procurement and production.
Covered in the “Integration” section of this lesson.
Which part of the Learn SAP curriculum covers MRP?
- A. SAP PP
- B. SAP MCQs
- C. SAP architecture
Show answer
A. SAP PP
This lesson sits in the SAP PP section of the Learn SAP course.