What is Material Requirements Planning (MRP) in SAP PP-MRP - Material Requirements Planning?

SAP Term: Material Requirements Planning (MRP)

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: A business process in SAP S/4HANA that includes all the steps from the creation of forecast demand to the creation of purchase requisitions triggering external procurement.

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• Key Concepts: 
  Material Requirements Planning (MRP) is a component of the SAP ERP system that helps companies plan and manage their material requirements. It is used to calculate the amount of raw materials, components, and finished goods needed to meet customer demand. It also helps to optimize inventory levels and reduce costs associated with overstocking or understocking. 
  
  How to use it: 
  MRP can be used to plan and manage material requirements for production, sales, and purchasing. It can be used to generate purchase orders, production orders, and sales orders. It can also be used to track inventory levels and generate reports on inventory usage. 
  
  Tips & Tricks: 
  When using MRP, it is important to ensure that the data entered into the system is accurate and up-to-date. This will help ensure that the system produces accurate results. Additionally, it is important to regularly review the system’s output to ensure that it is meeting the company’s needs. 
  
  Related Information: 
  MRP is closely related to other components of the SAP ERP system such as Production Planning (PP), Sales & Distribution (SD), and Materials Management (MM). These components work together to provide a comprehensive solution for managing material requirements.