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SAP MRP - Material Requirement Planning

 

SAP MRP - Material Requirement PlanningThe main function of material requirements planning is to ensure the availability of material, ie used for the supply or production of quantities in a timely manner both for internal purposes and for Comercial.

This process involves the monitoring of stocks and especially the automatic creation of procurement proposals for purchasing and production department.

 

SAP MRP FEATURES
  • A primary need (finished product, goods or spare parts) triggers the material requirements planning.
  • To meet these needs, MRP calculates the amounts and dates of sourcing and procurement plans corresponding elements. If a material is produced in-house, the system also calculates your secondary needs (BOM).
  • The system converts these elements planned procurement in Production Orders for in-house production and orders for external procurement.
  • The externally procured materials trigger the procurement process. In this case, he must select the right suppliers or having defined framework contracts.
  • The amounts made available by manufacture or by external procurement are placed in stock and are managed by Inventory Management.
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