Material Requirements Planning 1
1.1 Review Material Status
The Stock/Requirements list is your one-stop shopping location for all things material. Because
the Stock/Requirements list is so central to material planning, there are dozens of menu paths
that end up at the Stock/Requirements transaction. The fastest way to get there, though, is by
entering the transaction code, MD07. To do this, type /nmd07 in the Command field, then click
on the enter icon ( ):
Enter /nmd07 in the Command field
then click on enter
Remember that the /n tells the SAP system to cancel any transactions in progress, so /nmd07 can
be entered anywhere and the SAP system will go to the Stock/Requirements list. At the main
Stock/Requirements list screen, you will need to set the plant and MRP controller:
Enter ##PT for plant and
0## for MRP controller,
then click on the enter icon
The MRP controller provides a way to assign materials to individual planners.
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Enter the data shown in the figure above, then click on the enter icon (
screen will appear:
Initial inventory levels
are zero for all products
except NRG-B bars
) and the following
Click here to start
a new session
The inventory level for all products except the NRG-B bars is zero. We will keep the
Stock/Requirements list open to see the results of planning changes. That means we will need
another session to work in.
1.2 Review Bill of Material
To open another session, click on the new session icon ( ). In the newly-opened session,
review the Bill of Material by following the menu path:
Logistics Production Master data Bills of material Reporting BOM
Explosion Material BOM  Multilevel BOM
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Click on the Material text box,
then click on the search icon to
search for your material
Call up the search tool for the material, which will produce the following pop-up window:
Select the Material Number/Material Description tab,
enter ##* for material description, then click on the
check mark to search for your materials
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Use the search tool to search by Material Description using your data set number followed by the
asterisk (##*). As the Material Descriptions in the Fitter Snacker database all begin with the data
set number, searching for the material using your data set number followed by the asterisk
(wildcard) will produce the following list of your materials:
Double-click on the row with
material ## NRG-A to select it
Double click on ## NRG-A to select it. Make sure that ##PT is entered for Plant, enter PP01 (P
P Zero One) for BOM Application, then click on the enter icon ( ), which will produce the
following screen:
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This screen shows 7 cases of snack bars requires
500 lbs. of dough, and that to produce 500 lbs. of
dough, 300 lbs. of Oats, 50 lbs. of Wheat Germ,
etc. are required
This screen shows the recipe required for seven cases of dough. To learn more about any of the
materials required to make an NRG-A bar, select the item and click on the detail icon. For
example, clicking on the ## Nutmeg row and clicking on the detail icon ( ) will call up the
material master for Nutmeg:
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The Material Master is a multi-tabbed screen that contains all information about a material used
by any module in the SAP ERP system.
Click on the back icon ( ) and then, with the nutmeg selected, click on the where-used icon
( ), which will call up the following screen:
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This screen shows that Nutmeg is used in two products—NRG-A and NRG-B bars. According
to help.sap.com, the where-used list can be used to:

Determine requirements for a specific material

Select products that are affected by a change to an individual part

Find assemblies that will be delayed if, for example, there is a delay in the delivery of a
raw material

Calculate the effect on the cost of a product if the price of a raw material rises
Click on the back icon (
) three times to return to the SAP Easy Access screen.
1.3 Create Planned Independent Requirements
To see how MPR calculations are performed, we first need to create future demand which will
drive the MRP planning process. To do this, follow the menu path:
Logistics Production Production Planning Demand Management Planned
Independent Requirements Create
which will produce the following screen:
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Enter ##F100 for Material,
##PT for Plant and ## for
version number, then click on
enter
Enter ##F100 (NRG-A bar) for material, ##PT for Plant and ## for version number, then click
on the enter icon and the following planning screen will appear:
Enter 10 as demand for
next month and the
following two months, then
click on the save icon
Current month (your current
month, of course, will be different)
There are a range of features and tools available in the planning table, but for this exercise we
will simply use it to enter monthly demand. Enter a demand (planned independent requirement)
of 10 units for the next month and the following two, then click on the save icon ( ). Switch to
the session with the Stock/Requirements list, select material ##F100 (## NRG-A), then click on
the display selected stock/requirements list icon:
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Select material ##F100 (## NRG-A), then
click on display Selected stock/requirements
list
The Stock/Requirements list for ##F100 does not show the planned independents requirement,
because the data was loaded when the Stock/Requirements list transaction was executed (which
was before the planned independent requirements were created):
Click on the refresh icon to
get current planning data
Planned independent requirements
are not displayed
Clicking on the refresh icon (
requirements:
) will call up the recently created planned independent
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The newly created planned independent
requirements are now displayed
Inventory will be
negative if the
planned demand
is realized
1.4 MRP Planning Run
The MRP planning process will create planned orders for the ## NRG-A bars and all related
components to meet the planned independent requirements. To see how the MRP planning run
impacts materials at different levels of the BOM, we should set up more than one material to be
displayed easily in the Stock/Requirements list. To do this, click on the back icon ( ) then
select three materials: ##NRG-A, ## Dough NRG-A and ## Oats:
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Select ## NRG-A, ## Dough
NRG-A and ## Oats then click
on display
(your Material List may be in a
different order)
These three materials are selected because they represent three levels of the Bill of Material for
the ## NRG-A bars:
## NRG–A
(7 cases)
## Dough NRG–A
(500 lb)
## Oats
(300 lb)
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Selecting the three items and clicking on the display icon will produce the following display:
Click on Show Overview Tree
The material displayed will be the first one listed in the Material List, and your material list may
be sorted differently. The reason for selecting more than one material will become evident once
you click on the Show Overview Tree icon:
Double-click on a
material to display it
All three materials that were selected are displayed in the overview tree, and double-clicking on
a material in the overview tree will display its details. Double-click on ##S200 (## Dough NRGA):
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Note that there is nothing in the Stock/Requirements list for ## Dough NRG-A. Double-click on
##R380 (## Oats):
Notice there is nothing in the Stock/Requirements List for ## Oats either.
There are a number of ways to run the MRP planning process. This time, we will do it for every
material in plant, whether there is an entry in the planning file for the material or not. While this
might require a significant amount of computer time in a real production environment, for this
exercise it will not take too long and will make sure that all material plans are up-to-date. To run
MRP for a plant, switch to the other session and follow the menu path:
Logistics Production MRP Planning Total Planning Online
This will call up the following screen:
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Enter:
##PT for Plant
NEUPL for Processing key
3 for Create purchase req.
Use the default values for all other
entries, then click on the enter icon
Enter ##PT for plant, so that MRP planning will consider all materials in plant ##PT, NEUPL
(regenerative planning) so that all materials in plant ##PT will be planned no matter what entries
exist in planning file, and 3 for create purchase req. so that planned orders, rather than purchase
requisitions, will be created for purchased components. Click on the enter icon ( ) and the
following message will appear at the bottom of the screen:
Click on the enter icon (
) a second time and the following pop-up window will appear:
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Again, because we are using Total Planning, which will usually plan a large number of materials,
the SAP system is giving us a chance to decide exactly when to execute this planning run. Click
on the enter icon or press the enter key to execute the planning run. When the planning run is
completed, the following screen will be displayed:
This screen gives us a lot of interesting, but probably not critical, statistics about the planning
run. What is really of interest is the planned orders that have been created by the planning run.
To see these, switch to the Stock/Requirements list screen, select the ## NRG-A material and
click on the refresh icon ( ):
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Note the planned orders created to satisfy
the planned independent requirements
The MRP planning run has created 5 planned orders of 7 cases (35 total) to meet the planned
independent requirements (30 total) which would leave 5 cases extra at the end of the planning
horizon.
To see why the MRP system created orders of 7 cases, click on the Expand header details icon:
Click on Expand
header details icon
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Click on the Lot size data icon, and you can see that the ## NRG-A bars are procured in fixed lot
sizes of 7 cases:
Lot size procedure for this material
is fixed order quantity, 7 cases
Click on the Procurement and scheduling tab to see how this material is procured:
Procurement type E is in-house production
The time required for in-house production is 1 (1 day)
This data shows that the material is procured in-house (i.e. manufactured) and will take 1 day to
make. Click on the details icon for the first planned order:
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Click on the details icon for
the first production order
The details for the first planned order are displayed:
Order finish date is same date as
planned independent requirement date
Order start is one day
earlier than order finish
Click on the
to close the order details
Note that the order is designed to finish on the same date as the first planned independent
requirement. Because the in-house production time is 1 day, the order start date is a day earlier
than the finish date.
Close the order details window, then select material ##S200 from the overview tree:
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Select material ##S200 by double-clicking
Click on the refresh icon ( ) and the Stock/Requirements list for ##S200 (## Dough NRG-A)
will show dependent requirements as well as the planned orders needed to meet them:
Planned orders
Dependent
Requirements
Click on the details for the first
DepR (dependent requirement)
The dependent requirements for dough are created by the planned orders for snack bars. To see
this more clearly, click on the details icon for the first DepR (dependent requirement):
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Planned order for NRG-A snack bars
that is creating the requirement for a
batch of dough
This window shows the planned order for ## NRG-A bars that created the dependent
requirement. Close this window, then use the overview tree to select material ##R380 (## Oats).
Click on the refresh icon ( ) to get the following display:
Click on the details icon for the planned
order for 44,000 pounds of oats
Click on the details icon (
pop-up window:
) for the planned order for oats, which will produce the following
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Note that the order start date is 10 days before
the order finish date. Can you explain why?
Note that the order start date is 10 days earlier than the order start date. Can you explain why?
Where is the information kept to explain this date calculation?
Close this window, then look at the details for the first dependent requirement:
The chain of planned independent requirement to planned order to dependent requirement to
planned order . . . . can get complicated. Suppose there is a problem with our oats supplier, and
it is possible that the planned order for 44,000 pounds of oats cannot be turned into a delivery of
oats in time to meet this dependent requirement. What other plans will be impacted? That is the
role of pegging. To see what pegging can do for us, click on the pegged requirements icon ( ):
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Click on the Order route icon to see the chain of
events that lead to this dependent requirement
Clicking on the order route icon produces details on the chain of events that create the dependent
requirement at the bottom of the screen:
Click on the print icon to print this screen
Print a copy of this screen to hand in.
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