What is material shortage in SAP PP-MRP - Material Requirements Planning?

SAP Term: material shortage

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: A shortage that occurs when the requirements quantity is greater than the receipt and stock quantity. The shortage quantity is calculated in material requirements planning by the net requirements calculation.

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• Key Concepts: 
  Material shortage is a term used in SAP's PP-MRP (Material Requirements Planning) component. It occurs when the amount of material needed to complete a production order is greater than the amount of material available in the inventory. This can lead to delays in production and can have a negative impact on customer satisfaction.
  
  How to use it: 
  In order to prevent material shortages, SAP PP-MRP provides users with tools to monitor and manage their inventory levels. The system can be used to track the amount of material needed for each production order and compare it to the amount of material available in the inventory. If there is a discrepancy, users can take action to ensure that the necessary materials are available when needed.
  
  Tips & Tricks: 
  It is important to regularly review and update your inventory levels in order to avoid material shortages. Additionally, it is helpful to set up alerts that will notify you when your inventory levels are low so that you can take action before a shortage occurs.
  
  Related Information: 
  SAP PP-MRP also provides users with tools for forecasting future demand and managing supplier relationships. This can help ensure that materials are available when needed and help prevent material shortages from occurring.