Reorder Point and MRP type in material master

[former_member224727]

Current for all raw materials we have assigned PD MRP type in material master and whenever requirement comes business create purchase requisition manually for the ROH material.

Now business wants to use Reorder point functionality. If stock falls below 10,000 KG then system should create purchase requirsition automatically considering 18 days Planned delivery time. And this new PR qty should be 15,000 KG always.

Considering master data point I need to assign 10,000 KG to material master but what about MRP type? What MRP type I can assign?

And I can 15,000 KG as fixed lot size, correct me if wrong.

Do I need to maintain any config setting for this?

If I try to change MRP type frpm PD to VM (Auto reorder point planning) in material master then system gives me error message saying - "Enter the forecast data for the new MRP type". What could be reason?

Reply appreciated.

[Former Member · Accepted solution]

Dear Eric,

you can modify/create MRP type with following setting for Reorder point planning like this

Then Go to Material master and set the settings as mentioned below

Maintain :

10,000 as Re order Point and 15,000 in Maximum stock level !!!

Then go to MRP view 2 and assign 18 days in Planned Delivery time.

HOPE IT WILL HELP YOU OUT

Regards

Engr. Qazi Raheel

[former_member224727 · Accepted solution]

Sorry Jeevan I have to reopen this case. I was thinking its clear to me, but not really. I was doing testing few more scenario and below is my issue.

As per yesterday's suggestion I made changes to V1 MRP tyep & now I changed reorder point in material master to 100,000. I was expecting system to create create PR if stock falls below 100,000, but system did not do in MRP. Can you please suggest what am I missing?

[sjeevan · Accepted solution]

The net calculation to check if the stock fell below re-order point is determined for the day on which the MRP is run.

[former_member224727 · Accepted solution]

Are you saying when I run MRP on 10/15 system will check available stock on 10/15, which will be below reorder point and crete PR? Why ststem does not create PR before 18 days (planned delivery time)?

My req is system to check future stock & if it falls below reorder then create PR 18 days (planned delivery time) before. Isn't it possible?

[sjeevan · Accepted solution]

Re-order point is consumption based planning, which means it's plans based on the how the material is consumed not based on requirements.  Which is why typically the way you do is you see the pattern of requirements to come up with your own manual re-order point value and also come up with a maximum of stock level (that your company want invest financially for that material) and use that value with lot size HB.

Now as you have order reservations consume stock, system will check every time stock is depleted and if goes below re-order level it will flag it for planning. Once planning is run, system will create a procurement proposal to replenish it to the maximum level. See the figure below

What you're wanting is the behavior like MRP Type PD, this is Material Requirements Planning.  There should not be much confusion with what kind of MRP type you'd use in what business scenario, consumption based planning is mostly used for low value materials and MRP type planning is mostly used for sub-assemblies and moderate to high value materials.

[former_member224727 · Accepted solution]

thanks again Jeevan for your continous support.

Am I using correct MRP type (V1) or should I use something different for this kind of requirements?

[former_member224727]

If I try to save material master then getting message - "The MRP type VM requires forecasting data to be maintained"

Message no. MG155

Diagnosis

You have used an MRP
type for which the Forecast indicator has been set to
Obligatory forecast in Customizing for Consumption-Based
Planning in Check MRP types. This makes it mandatory to maintain
forecasting data for the material. However, you have not yet maintained this
data.

System Response

You may not update the data for the material.

Procedure

Maintain the data for the user department Forecasting for the
material concerned.

[sjeevan]

You need to use VB or V1.

For system to automatically calculate you need to have forecasting tab active in material master with some previous consumption values, if you did not maintain those things system will give error.

[former_member224727]

VB and V1 says manual reorder point planning, but I want system to auto do planning based on master data. Does VB or V1 works in that case? Thats why I was thinking to use VM.

I checked config of VM in MRP type setting, here Forecast Indicator I have "Obligatory forecast". I belive if I make it to Optional forecast then it should work without error, right?

[sjeevan]

System will plan automatically when you set up a background MRP job in transaction code MDBT, since your re-order point is determined by your business users (10,000KG in your original post and is fixed for some amount of time) you'd need to use VB or V1.

If you make forecast optional in VM it becomes pretty much like VB or V1.

Compare the settings of VB and VM on tcode OMDQ.

[former_member224727]

Thanks Jeevan for clarification. I'm going to use VB.

Now I'm doing testing in test system. My total stock in MMBE is 44,695.951, and 89,333.964 stock is already reserved against future process order.

Now when I ran MRP system created PR with qty 86,207.KG, which I set as fixed lot size. If I go in MD04 then system calculated ( + 44,695.951 - 89,333.964 + 86,207 ) = 41,568.987 KG available qty which is still below 53,000 (re order point planning).

Doesn't it require to create 2 PR instead of 1 to keep stock above 53,0000?

[sjeevan]

Since you want order reservations to be take into account while creation of purchase requisitions for re-order point, you'd want to use V1 with Include ext. reqmts = 1 or 2 and check the box "Order reservation". You can change VB with these settings also but I would suggest against changing the settings of standard MRP Types.

[former_member224727]

I setup master data as suggested. We are using MRP type V1 for this purpose and reorder qty is 53,000 KH but it is not working as expected. System is not creating PR even qty falls below 53,000. Attaching MRP type V1 config screen and MD04 screen after MRP run. Please suggest what am I missing?

Please suggest any config correction required.

[former_member224727]

I'm keep running MRP and stock is below 53,000 on Sept 14 but still system does not propose PR. What could be reason? Reply appreciated.

[sjeevan]

Hi,

Change the Include ext reqmts to 1  and uncheck automatic calculation of re-order point in OMDQ and re-run MRP.

[sjeevan]

Here's an example:

Before MRP

Running MRP:

After MRP:

[former_member224727]

I made same changes in config & ran MRP again..So system created PR and showing in front of Sept 30. Want to understand why on 30/09? As per material master MRP2 - planned delivery time is 18 days.. Reply appreciated.

[sjeevan]

Hi,

Can execute the MRP with setting values as mentioned in screen shot of my previous reply and check.

The delivery date must me GR processing time + Planned delivery time + Purchase processing time

as mentioned in my reply in the following thread.

http://scn.sap.com/message/13663515#13663515

[former_member224727]

I made MRP type V1 setting as you suggested and ran MRP again with your setting, but wonder!!!!

System deleted two earlier created PR, which is fine with me, but created new PR on 09/30.. Why it does consider planned delivery date to 09/30?

On 10/19 my stock is falling between reorder point (53,000) then why system does not create new PR at 10/19?

[sjeevan]

Check out my screenshots below:

OMEW:

MRP2:

The delivery date is 18 calendar days after today