What is materials planning in SAP PP-MRP - Material Requirements Planning?

SAP Term: materials planning

• Component: PP-MRP

• Component Name: Material Requirements Planning

• Description: A generic term for the activities involved in creating a master production schedule or an external procurement plan for all the materials in a plant or company. Materials planning is also referred to as material requirements planning.

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• Key Concepts: 
  Materials planning is a component of SAP's Production Planning and Material Requirements Planning (PP-MRP) module. It is used to plan and manage the procurement of materials needed for production. It helps to ensure that the right materials are available at the right time and in the right quantity. It also helps to optimize inventory levels and reduce costs associated with procurement. 
  
  How to use it: 
  Materials planning in SAP is used to plan and manage the procurement of materials needed for production. It helps to ensure that the right materials are available at the right time and in the right quantity. It also helps to optimize inventory levels and reduce costs associated with procurement. The user can define material requirements, create purchase orders, and monitor stock levels. The user can also set up rules for automatic replenishment of materials when stock levels reach a certain threshold. 
  
  Tips & Tricks: 
  When setting up materials planning in SAP, it is important to consider the lead times for each material. This will help ensure that materials are available when they are needed for production. It is also important to consider safety stock levels, which will help prevent stockouts due to unexpected demand or supply disruptions. 
  
  Related Information: 
  Materials planning is closely related to other components of SAP's PP-MRP module, such as production scheduling, capacity planning, and inventory management. It is also related to other modules such as Sales & Distribution (SD) and Logistics Execution (LE). Understanding how these modules interact with each other can help optimize materials planning in SAP.