Introduction SAP Material
Planning
Dr. Djamal Ziani
King Saud University

Organizational Level in Material
Planning
• Client
• Company code
• Plant
• Storage location

• Material Master
• Bill Of Material (BOM)
• Routings

• Raw materials
• Operating supplies
• Semi-finished products
• Finished products

• 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

• The BOM are single level.
• The items of the BOM can themselves contain further 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 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

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

• 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.