SAP Material Management

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MRP Mechanics

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MRP Type “VV”

“Forecasting”

Gross to Net

Lot Size Calcuation

Final

Lot Size

Procurement Decision

Date Calculation

BOM Explosion

(only for when there is a BOM)

The Forecasting techniques used in

MM MRP

​

Forcasting run

Precedes the MRP run

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​

​

Step 1, 2, 3, and 4

will use MRP run

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Step 5 is ony used if the Material has a BOM (may be applied for Kitting situations)

Parameters can be found in MRP1, MRP2 (safety stock), MRP3 (strategy), MRP4 (exclude SLoc) view

Parameters can be found in MRP2 view

Parameters can be found in MRP2 view

Parameters can be found in MRP2 view (or Work Schedulng view for PP)

Step 1

Step 2

Step 3

Step 4

Step 5

Forecasting

Run

Gross to Net

Lot Size Calcuation

Final

Lot Size

Procurement Decision

Date Calculation

BOM Explosion

(only for when there is a BOM)

The Forecasting techniques used in

MM MRP

​

Forcasting run

Precedes the MRP run

​

​

​

Step 1, 2, 3, and 4

will use MRP run

​

Step 5 is ony used if the Material has a BOM (may be applied for Kitting situations)

Step 1

Step 2

Step 3

Step 4

Step 5

Forecasting

Run

Gross to Net

Lot Size Calcuation

Final

Lot Size

Procurement Decision

Date Calculation

BOM Explosion

(only for when there is a BOM)

The Forecasting techniques used in

MM MRP

​

Forcasting run

Precedes the MRP run

​

​

​

Step 1, 2, 3, and 4

will use MRP run

​

Step 5 is ony used if the Material has a BOM (may be applied for Kitting situations)

Step 1

Step 2

Step 3

Step 4

Step 5

Forecasting

Run

Foreastin Run

the

MRP Run

DEMAND

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Historical Consumptin Data

resulted in Demand Forecast

via Forecasint Run

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Sales Order

Reservations etc

SUPPLY

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MRP Planned Orders

MM Purchase Requisitions

MM Schedule Lines (Scheduling Agreement)

MM Purchase Orders

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MRP Type “VV”

uses 2 execution logic.

Forecasting and MRP Run

MRP

MM

PP

APO

IS

“B” ROP

“S” Forcast

“R” Time-Phased

or

“D” MRP (w/o BOM)

“D” MRP

“M” MPS

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(usually with BOM)

“X” no MRP

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(planned using APO)

“W”

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(IS Retail)

The MRP procedure is delivered by SAP and is assigned to the MRP type in the IMG (see next 2 slide)

You can find the MRP tyep “VV” here in this IMG

Forecast Run uses Total Consumption values

MRP Run uses the Total Requirements from Forecasting Run results

MRP 1, 2 data views are mandatory

MRP type “VV” requires Forecasting data view

Assign MRP type “VV’ to MRP 1 view here

STEP 1

Setup the necessary Lot sizing rules

STEP 2

Determine Procurement Decision

STEP 3

Determine Date Calculation data

STEP 4

Use Automatic Model Selection so that the system determines the historical data model during Forecasing run and evaluates the model to be used (SAP ERP supports Constant, Trend, Seasonal models)

Forecast periods (into the future)

Expected Historical data (into the past)

Intiitalization, Tracking Signals, and Alpha, Gamma, Beta, Delta Factors are for Forecasting Controls (use the standard if not familiar), as you do not Technical Forecasting knowledge to appreciate this part of the Forecasting parameters. (These are text books based Forecasting controls, review and study any text books should give you some ideas)

Forecast is based on historical data which can be found here ...

The Consumption data is updated via MM Goods Issue and also PGI of SD Delivery (or you can also enter here when the material is first created). Note the system shows Period 06.2016 as the latest as this material is created on 12.06.2016)

Here as I am first creating a Material, I entered the Consumption history manually

System will use Corrected Values in Forecasting

After first entered, the consumption figures are always updated via GI

No date in S/R list as of now

Note Consumption history in this TAB

Lets Perform a Forecasting Run

Click ‘Past’ ICON to view History Values (Consumption History) as the one you saw in the Material Master

Click ‘Execute’, and decide Forecast start period and Click Continue ...

Result of Auto Modeling Forcasting is a Constant Model

You can also Execute Forecastng Run in the Material Master in the Forecasting Data view

Decide Period start and Continue

You an decide which Modeling method to use

Here I choose Tred Model and click ‘Forecasting’

Decide the Smoothing numbers and click Forecasting

Forcast results

Forcast Errors (R/3 provides 3, APO gives all 6)

Forecasting Run creates a Demand to the S/R list

Now Perform MRP run

If material without BOM, it will go through step 1 to 4.

Else with a BOM, it will continue to execute step 5

Note Planned Orders as Supplies are created