Introduction SAP Material Planning Dr. Djamal Ziani King Saud University

Organizational Level in Material Planning Client Company code Plant Storage location

Master Data Used Material Master Bill Of Material (BOM) Routings

Material Master

Material Type Raw materials Operating supplies Semi-finished products Finished products

Bill of Material (BOM) The BOM contains the assemblies or components, to be included in the production of a material. Used in MRP, production, procurement and for product costing

Bill of Material (BOM) The BOM are single level. The items of the BOM can themselves contain further BOM

Bill of Material (BOM) Plant: is the plant for which you wish to create or process the BOM. You can assign more than one plant. Alternative BOM: For distinguish the different BOM for the same material BOM usage: Where you want to use the BOM (production, engineering, costing…)

Routings Routings contain the steps that are necessary for production: – The corresponding operations – The sequence – Work center in which these operations are to be executed – Time elements that are relevant for scheduling the operations

Routings

MRP: Material Requirement Planning The system calculates the quantity required to continue the sales of the final product without any delays, considering the following resources: – Stock on hand. – Receipts: purchase orders, production orders (for the parent item) The system then subtracts the following requirements: – Sales orders – Forecasts – Production orders (for the child items) – A/R reserve invoices The system uses the planning policy to make the production/purchase order recommendations. The planning policy is based on: – Lead time, Minimum amount,, Time intervals Complete production orders for the parent item, quantities of the child items that comprise the BOM are needed. The system calculates the quantity of the child items, taking the MRP-dependent requirements into account. The system then recommends purchase/ production orders for the child items required for producing the parent item.

MRP: Material Requirement Planning

MRP

MRP-Processing Key NEUPL : Regenerative Planning. It will process ALL materials, disregards the fact whether or not planning relevant changes were made to the material. For NETCH and NETPL: the system take into consideration only changes that are relevant for planning a material (like sales order entry, purchase order entry, stock release, etc.). – NETCH : Net Change Planning – NETPL : Net Change Planning within Planning Horizon. if a change occurs outside the planning horizon (e.g. a sales order is entered 2 months away and your planning horizon is 6 weeks), then the material is not included in MRP even though there is a change.