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MPS/MRP
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MPS/MRP
Where does demand come from?
What is MPS/MRP?
How does MPS/MRP work?
How do we use MPS/MRP?
How does MPS/MRP support multi-level
planning?
mySAP
Where Does Demand Come From?
Independent Demand
- Demand that is unrelated to the demand for
other items. This is typically represented in SAP
by Sales Forecast (IndReq), Customer Orders
(Order) or Delivery (Deliv.).
Dependent Demand
- Demand that is calculated from another material
or location. This can be calculated through a Bill
of Distribution or Bill of Material. Examples of
this type of demand in SAP are Planned Order
Release (PlORel) or Dependent Requirement
(DepReq).
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Demand Planning Monthly Process
Demand Forecast is updated at least monthly
(consensus meeting), with adjustments updated
weekly.
Plans are developed in weekly buckets over a
minimum 18 month planning horizon.
Consensus is reached at the S&OP Meeting and the
events leading up to the meeting.
The forecast flows simultaneously into both SAP and
APO DRP
Category Supply Planners are responsible for
validating that the forecast from Demand Planning is
correctly received


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Forecast Details
Forecasts by week by Demand Forecasting
Unit/ By Customer Group/Channel
Forecasts passed from Demand Planning
System to Supply systems by week, by FPC,
by country, by Ship from location
The split of demand from weekly to daily
quantities is done by batch job after the
forecast is transferred to SAP
Daily updates occur using IDF (Intelligent
Daily Forecasting) over the next 42 days

mySAP
Demand Management: Versions
SAP can hold multiple versions of demand
Versions have a two character ID, and are
defined as part of the categorys configuration
Each category will have one designated
active version (multiple active versions are
additive)
Inactive versions can be used for What If
analysis and testing
mySAP
Independent Demand (Forecast) in SAP
Via MD63
Double-click
IndReq from
MRP or SR List
OR
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Forecast via Individual Display
Daily forecast can be displayed in:
Horizontal (Table) or
Vertical (Sched. lines) format
Change history can be displayed by clicking
icon when displaying forecast
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Dependent Demands in SAP - FERT
Dependent demands for FERTs will show up as ConRel in the near term and
PlORel after that for any requirements to ship from one SAP plant to another
(Producing Plant to Distribution Center).
FERTs can also have component dependent demand or DepReq for
customized products such as displays or special packs.
If your plant does not ship directly to customers, you will not see any IndReq
(forecast) at your plant. It will only show up at the DC.
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Dependent Demand in SAP HALB/ROH
Requirements from
parent item calculated
from BOM explosion
show as DepReq
Interplant requirements
will show with MRP elements
like ConRel (STO) or
SAgRel (STSA)
mySAP
MPS/MRP
A set of SAP programs that are designed
to calculate a supply plan based on
configuration settings, master data and
raw data inputs.
What is MPS/MRP?
mySAP
MPS/MRP
Processes one material at a time
Calculates from the present out into the future
The primary steps at each level are:
- determine if orders are needed
- calculate the quantity and timing of the orders
- assign internal production versions or external
sourcing based on the mrp quotas
- schedule the orders (calculate start and stop
times based on the recipe and the resource)
- explode out dependent requirements based on
the BOM
How does MPS/MRP work?
mySAP
MPS/MRP
Planning Table (days)
Material Code A Minimum Order Qty 6
Safety Stock 40 Rounding Value 3
Lot size type Lot for Lot
M T W Th F Sa Su
Demand 10 10 15 20 15 20 25
Projected Inventory 50 40 25 20 26 21 17
Planned Order 0 0 15 21 15 21 24
Ending Inventory 60 50 40 40 41 41 42 41
Example 1
mySAP
MPS/MRP
Planning Table (days)
Material Code A Minimum Order Qty 6
Safety Time (days) 4 Rounding Value 3
Lot size type Lot for Lot
M T W Th F Sa Su
Demand 10 10 15 20 15 20 25
Projected Inventory 50 52 55 62 56 45 26
Planned Order 12 18 27 9 9 6 6
Ending Inventory 60 62 70 82 71 65 51 32
Example 2 Impact of Safety Time
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MPS/MRP
Planning Table (days)
Material Code A Minimum Order Qty 6
Safety Stock 40 Rounding Value 3
Lot size type 1W at end of week
M T W Th F Sa Su
Demand 10 10 15 20 15 20 25
Projected Inventory 37 27 12 -8 -23 -43 -68
Planned Order 0 0 0 0 0 0 108
Ending Inventory 47 37 27 12 -8 -23 -43 40
Example 3 End of Period Lot Size - Weekly
mySAP
MPS/MRP
Example 4 Period Lot Size - Days
Planning Table (days)
Material Code A Minimum Order Qty 6
Safety Stock 40 Rounding Value 3
Lot size type 3 Day
M T W Th F Sa Su
Demand 10 10 15 20 15 20 25
Projected Inventory 37 57 42 22 61 41 16
Planned Order 30 0 0 54 0 0 45
Ending Inventory 47 67 57 42 76 61 41 61
mySAP
MPS/MRP
How do we use MPS/MRP to generate our
plans?
MRP is run in a batch mode for all plants
MRP runs overnight and is expected to be
finished before planning starts in the
morning. This can be anywhere from 5 to
8:00 AM depending on the region
It is run Monday through Sunday
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MPS/MRP - Running MRP
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MPS/MRP - The MRP List
mySAP
MPS/MRP
MRP List vs. Stock Requirements List
MRP List :
1. Is a static picture of the planning
position as of the last mrp run
2. Has exception messages that
provide useful information regarding
the plan

Stock Requirements List:
1. Is a dynamic list that reflects the
most up-to-date picture of all the
mrp elements
2. Does not have all the exception
messages generated during the
mrp run
3. Is the same as the mrp list at the
end of the mrp run but then
deviates as changes are made to
the mrp elements.
mySAP
MPS/MRP and Multi-Level Planning
Analyze the complexity of integrated planning
across multiple levels of Bill of Materials
within one location or across multiple sites
- Multiple levels of Bill of Material : display units,
finished products, intermediates, raw and
packing materials
- Multiple sites: DRP networks, contract
manufacturers, and interplant sourcing
relationships
mySAP
Graphical display of Multi-Level
Finished Product
Intermediate
P&G Plant
Level 1
Level 2
Level 3
Raw Materials
Requirements flow
Supply flow
RDC1
Supplier 1
Supplier 1
Supplier 1
Suppliers
Finished Product
Intermediate
CM
Raw Materials
RDC2
RDC3 RDC4
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Levels
Single Level : a material (finished product,
intermediate, or raw materials) code at a
location (producing plant, CM, or RDC)
Each level has requirements and a supply
plan in response to those requirements
- Requirements : anything which will draw
on inventory of this material at this location
- Supply : anything which will build / supply
inventory of this material at this location
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Integration through Levels
MRP Run
MRP Run
MRP Run
Level 1
Level 2
Level 3
Requirements
for L1
Supply for L1
Requirements for L2
Requirements for L3
Supply for L2
Supply for L3
Days
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MRP in a multi-level environment
The nightly batch job is designed to start at the
highest level and take into account all multi-
level relationships
A manual MPS multi-level run will take into
account all multi-level relationships below the
starting level
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Stability within a multi-level structure
A change in the plan at one level may affect
the plan of all lower levels
Firm zones are used to control the changes
within the lower layer (supply) of each Level in
order to maintain stability within the level and
all levels below
MRP engine gives MRP exception messages
to recommend changes to the plan inside the
firm zone
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Effect of firm zones on stability
MRP Run
Level 1
FP at
RDC
Requirements for L1
Supply for L1
PDT
MRP Run
Level 4
RM at
Plant
Requirements for L4
Supply for L4
PDT
MRP Run
Level 2
FP at
Plant
Requirements for L2
Supply for L2
PTF
Days
MRP Run
Level 3
Intermediate
at Plant
Requirements for L3
Supply for L3
No PTF
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MPS/MRP
MRP Elements and their relationships
Finished
Product
Intermediate
Raw
Material
Demand:
IndReq \ Order \ Deliv.
ConRel \ PlORel \ PRqRel
Supply:
PlOrd. \ PrcOrd
PchOrd \ PlOrd. \ PurRqs
Supply:
PlOrd.\ SchAgr \ PchOrd
PlOrd.\ PurRqs \ ShipNt
Demand:
DepReq \ OrdRes
ConRel
Demand:
DepReq \ OrdRes
PlORel
Supply:
PlOrd.\ PrcOrd
PlOrd.\ PurRqs