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plz let me know what is the fundamental difference between MPS and MRP .my client interviewed me on this .i said what to producce and what to get from outside is MRP  and hwo to schedule the production quandities is MPS...i know i am sounding absurd ...what is the resonable answer ? can you please help me out on this

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Former Member
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MPS is done first on finished goods and considers the capacity availability to make.

MRP is done second after the MPS respects capacity availability and then the MRP plans all the components and raw materials needed to make the finished goods.

It's not always as simple as this as MPS should look at capacities on work centres masking semi-finished goods so sometimes you do MPS / MRP on all BOM levels adjust the schedule to suit available capacities to make and when you have schedules how you want then you release the MRP results to purchasing.

On SAP in MD40 you can do MPS based on the MRP type in materials in MRP1 and not the MRP or if you tick the flag in MD40 you can run both at the same time.


Active Contributor
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Hello Rahul,

The MPS material are those which consume critical resources and effect company profitability so it may be finish good or assembly.

Please refer below link for more detail

I hop this information helpful to you


Umesh Mali