SAP S/4 HANA: Quick Bytes about how MRP Runs #sap #saps4hana #saptechnical #mrp #checkoutdescription

What is MRP (Material Requirement Planning)?

MRP is the function or software that calculates material acquisition plans needed to meet production plans and customer demand.

The SAP MRP (Material Requirement Planning) is used to procure or produce the required material quantities on time for in-house purpose or for fulfilling customer demands. In manufacturing, the function of MRP is to guarantee material availability on time. The main objective is to plan the supply based on requirements and considering the current stock in hand and meet the shortages.

How does MRP run?

The MRP run is an extremely complex process. Overall, the MRP run can be broken down into 6 major steps:

Step 1: Planning File entries
Step 2: Net Requirement Calculation
Step 3: Lot Size Calculation
Step 4: Procurement Type
Step 5: Scheduling
Step 6: BOM Explosion

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