
Material Requirements Planning (J44)
This process enables your material requirements planning (MRP) department to automate the procurement planning. The main function of MRP is to guarantee material availability and to avoid delays in order fulfillment. The planning run checks availability of each material and, in case of shortages, creates purchase requisitions, or delivery schedules if a scheduling agreement exists. Remaining shortages are displayed in the MRP app where the material planner can analyze the situation.
Procurement lead time can be longer than the time available to fulfill a demand. For this reason, you must procure the material in advance and cover your demand from stock. This process starts by creating forecast demands that are interpreted as expected customer demand. The MRP schedule runs. The system creates purchase requisitions or scheduling lines that trigger external procurement.
Optionally, you can handle purchase requisition handover and MRP material exceptions.
Key Process Steps Covered
- Manage demand forecast as Planned Independent Requirements (PIRs) manually
- Calculate from consumption data to forecast and forecast to PIRs automatically
- Monitor and manage material coverage
- Run materials requirements planning (MRP) for materials with shortages
- Evaluate the results of the MRP run
- Hand over the purchase requisitions if needed (optional)
- Display MRP run material issues and key figures
- Detect and resolve MRP material exceptions
Benefits
- Detect shortages quickly
- Create purchase requisitions or scheduling lines to cover demand automatically
- Get higher accuracy of purchased quantities
- Do a hand over for the purchase requisition (optional)
- Save costs through process automation
- Detect and resolve MRP material exceptions
Where is Material Requirements Planning(J44) being used?
This Scope item is used in the following way:
- As a core function of Production Planning within Manufacturing Scope Item Group