Production Planning

Planned Independet Requirement

Definition:

Independent requirements and dependent requirements are the two main types of requirements you encounter when configuring SAP planning. This is what they are: 

Planned Independent Requirements (PIR)

Planned Independent Requirements are planned production or sales quantities that are based on some sort of forecast procedure (e.g. Material Forecast or S&OP procedure). These numbers are used in MRP to calculate procurement and/or production quantities for a material.

(Planned) dependent requirements

Dependent requirements is demand that is dependent on another material. E.g. components of a bill of material are often planned on the basis of the demand for the material of which it is a part.

Example

You plan to sell 200 bikes in the month of January 2009 based on sales in the same month of 2008. These 200 bikes is a Planned Independent Requirement for 01/2009.

Since every bike is produced using two pedals the 200 bikes you plan to sell in January 2009 results in 400 pedals you need to procure. These 400 pedals is a planned dependent requirement for 01/2009.

On the basis of these numbers MRP can calculate on the basis of stock levels how much bikes and pedals you actually need to produce/procure.

yzmercan

eddai is a student studying Industrial Engineering in Marmara University, Istanbul/TURKEY. He has been running SAPDocs.info site since 2008 September and he also runs SAP Directory site. You can follow him on twitter or contact him for any suggestion

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