What is MRP procedure in SAP PP - Production Planning and Control?

SAP Term: MRP procedure

• Component: PP

• Component Name: Production Planning and Control

• Description: A procedure that specifies how planning is performed for a material. MRP procedures are divided into two groups: MRP and consumption-based planning reorder point. MRP is based on future requirements. Assembly and component requirements for finished products produced in-house are calculated by exploding the bill of materials. Consumption-based planning reorder point is based on historical data. Requirements are calculated using past consumption values.

Smart SAP Assistant

• Key Concepts: 
  MRP (Material Requirements Planning) is a procedure used in SAP Production Planning and Control (PP) to calculate the required quantities of materials and components needed to produce a finished product. It takes into account the current stock levels, planned orders, and forecasted demand to determine the necessary replenishment of materials. 
  
  How to use it: 
  MRP is used to plan and control the production process. It helps to ensure that the right amount of materials are available at the right time, so that production can be completed on schedule. The MRP procedure can be used to generate purchase orders, production orders, and transfer orders for materials and components. 
  
  Tips & Tricks: 
  When setting up an MRP procedure, it is important to consider the lead times for each material or component. This will help ensure that the necessary materials are available when they are needed for production. Additionally, it is important to keep track of any changes in demand or supply, as these can affect the MRP calculations. 
  
  Related Information: 
  MRP is closely related to other SAP PP processes such as Capacity Requirements Planning (CRP) and Material Master Data Maintenance (MMDM). Additionally, MRP can be used in conjunction with other SAP modules such as Sales & Distribution (SD) and Materials Management (MM).