The main function of MRP is to ensure material availability, i.e. timely procurement of the necessary requirement quantities for in-house production and sales. MRP helps monitor stocks and automatically generate procurement proposals for purchasing and production.
The automatic planning run for MRP determines the shortage situations and generates the corresponding procurement elements. MRP procurement elements are planned orders, purchase requisitions and scheduling agreement schedule lines.
In-house production à Planned Order à converted to production orders
External Procurement à 1) Planned Order or 2) Purchase Req
For planned order it has to be converted into a PR by the MRP controller so that purchasing can order against it.
If a scheduling agreement exists for a material and is flagged MRP relevant in source list, it is possible to make scheduling agreement schedule lines directly from the requirement planning run. Scheduling agreement schedule lines, unlike planned orders and purchase req. are fixed elements.
Customizing
-Materials Mgmt à Consumption Based Planning à Planning à Activate MRP
-Materials Mgmt à Consumption Based Planning àPlant Parameters à Carryout Overall Maintenance of Plant Parameters
Planning file entries include MRP relevant transaction, such GI, reservations, MRP data change of a material, forecast execution etc. Planning file entries are added automatically to the entry file, however they can be included manually also.
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