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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.


4 Comments

  1. Anonymous

    Hello Keerthi,

    Can you have one storage location in two different MRP areas?

     

     

    Best regards,

     

    -Oscar

    1. Hi Oscar,

      No: one storage location can be in one MRP area only.

      You have to remember that each MRP area is planned independently. It would not make sense for receipts / requirements in storage location to be considered in the net requirements calculation of two different MRP areas.

      Hope it helps, 

      Rui Dantas

  2. Keerthi

    is there any option to maintain Planning type (sales and operation planning) with MRP-Area ? 

    currently I have issue with this.. When I enter sales forecast/ production plan (MC94) and transfer to demand management, data always populates in plant level MRP-area (lets say MRP-area 1000) and not custom defined MRP-Area (1000-MA1) ?? 

    is there any option to do this ? 

    Thanks in advance..

  3. Thanks for the nice doc! One question - how can I create a new mrp area type or it's not possible?