Browse Production Planning related topics under this category

MRP Concept in SAP

MRP is the planning tool in SAP which will look at all aspects of a material and is highly based upon the master data of the material.
MRP looks at current inventory, current requirements, and open purchase requisition/orders and so on. So if a material is required to satisfy a sales order and there is no inventory, MRP will create a planned order if the item is to be produced in house. This planned order can then be converted to a production order by the master scheduler.

If the item is to be procured, then MRP will create a purchase requisition which the Buyer will convert to a purchase order. This is just one scenario, the system is highly configurable and will do pretty much whatever you tell based on config and master data. Read more

Material Replenishment Planning Guide

This process is used to run the replenishment requirement of all materials at a plant.  Each plant will determine the frequency of running MRP – every other day, once a week.  The purpose of MRP is to ensure the right material arrives at the right place at the right time.  The MRP run is used to automatically generate planned orders or purchase requisitions enabling the replenishment of materials depleted by consumption and the planning of known requirements. The system tries to achieve a balance between optimizing needed materials and minimizing costs by keeping inventory levels at a minimum and having no stock outages. Read more

What is SOP?

Suitable for long/medium-term planning, with an aim to streamline a company’s ‘Sales and Operational Planning, SOP’ is a forecasting tool enabling you to set up sales, production, and other supply chain targets based on existing, future, or historical data. SOP is most suitable for planning finished goods, and not for material component planning.

SOP plans are passed on to Demand Management (DEM) in the form of independent requirements, which in turn is fed into MPS (Master Production Scheduling) and MRP (Material Requirements Planning). The results of SOP can be passed on to profitability analysis, cost center accounting, and activity-based costing.

SOP contains two application components; namely, Standard SOP (PP-SOP) and Flexible Planning (LO-LIS-PLN). The Standard SOP comes pre-configured with the system. Flexible planning can be configured in a variety of ways.

Difference Between Variant BOM and Multiple BOM

While a Variant BOM groups together several BOMs that describe different objects (for example, different models of a car) with a high proportion of identical parts, a Multiple BOM groups together several BOMs that describe one object (for example, a product) with different combinations of materials for different processing methods. The Variant BOMs are supported for the following BOM categories:

  • Material BOMs
  • Document structures
  • Equipment BOMs
  • Functional location BOMs

Multiple BOMs are only supported for Material BOMs.

SAP Production Planning&Order Processing

After viewing this presentation you will learn the basics of SAP Production Planning and Order Processing


ABC of Enterprise Systems
Reports and Queries
Type of Master Data
Materials Master
Bill of Material
Planning Process
Understanding Production Processing and Execution Read more

Planned Independet Requirement


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. Read more

Difference between MRP&MPS

Master Production Schedule (MPS) :
MPS operates within only one level of the BOM, While MRP can be utilized throughout all levels of a material?s BOM. If a MPS is run on a material, the necessary orders are planned at that level. Dependent requirements (if any) are placed on the next BOM level down, and then the process stops. Read more