Configuration of the SAP MRP Procedure Parameter

1 R1 with PDDemand-driven(MRP)Demand-driven(MRP)MR P with MasterSchedule itemsSMI -demand-drivenSMP4(periodic)P2(periodic) P3(periodic)P1(periodic)P4(continuous)P3 (continuous)P2(continuous)P1(continuous) M4 RRRSRFRPV1V2 VBVMVIREM2M3M1 Set and fix order proposal Set and fix order proposal manual controlSet and fix order proposal Set and fix order proposal manual controlSet and fix order proposal autmatically without manual controlSet and fix order proposal autmatically without manual controlGenerate order proposals automatically? (goodforecast quality)PDContinuous reviewPeriodic reviewperiodic stochasticpolicy (s, S), VVDelivery rhythm de-pends on day of orderperiodic reorder point policy (T,s,S), R2 Periodic withdelivery rhythmPeriodic policywidth range of coverage profileContinuous review(reorder point policy)Periodic reviewInternal customerExternal customerReplenishmentpolicyConsumption-b ased(normal)VSSaisonal planningConsumption-basedNo dispositionBOM explosionNo dispositionX0, X1 NDGenerate order proposals automatically?

2 (goodforecast quality)Planning with fixing horizon:high planning nervousness over BOMC ontinuous review applicable technical and organizational Delivery at any date possible, no fixed intervals? A or B items only, if high control costsMRP with Master Schedule items (critical items) Material has significant influence on production performance OR production technology highly influences the production process OR high share on overall turnover (A-item) AND top level BOM itemDemand-driven (MRP, plan-based, deterministic) vs consumption-based disposition LT + LT of BOM-successors < acc. LT Production smoothing and strategic stocking are not primary goals of material planningConduction of disposition (MRP Procedure , MRP policy) Material not critical and no demand (during last x months) OR: Minimal planning effort requested (planning with BOM-successor through BOM explosion): C-itemContinuous review applicable technical and organizational Delivery at any date possible, no fixed intervals?

3 A or B items only, if high control costsContinuous review applicable technical and organizational Delivery at any date possible, no fixed intervals? A or B items only, if high control costsReplenishment policyMaterial planning conducted for customerPlan-driven + periodic reviewP1 (M1 with MPS items): Order proposals within the fixing horizon get fixed (but no new proposals)P3: (M3 with MPS items) not automatic fixing of order proposals necessary proposals are shifted to the end of the fixing horizon P4 (M4 with MPS items) Order proposals are not generated automaticaly A shortage situation is not balanced P2 (M2 with MPS items) Order proposals are fixed withing fixing horizon No automatic setting of new order proposals A shortage situation in fixing horizon is not balanced automaticallyPlanning with fixing horizon:high planning nervousness over BOMSet and fix order proposal autmatically without manual controlSet and fix order proposal autmatically without manual controlM0.

4 No automatic fix-ing of order proposalsDynamic target stock level (A or Y,Z item)Supplier managesstock more efficiently?Saisonal product?Planning accordingto BOM explosionDynamic target stocklevel (A- or Y,Z item)Consider externalrequirementsNo considerationof ext. externalrequirements(Reservations adequatelyconsidered in fore-cast and safety stock) constant demand (X-item) B-/C-items Order cost relatively high var. demand (Y, Z item) A-items ordering costs relative low delivery schedule in place relatively stable av- erage daily demand (X-item) use dynamic ss (R1)Use of VMI-moduleInternal or externalcustomerGenerate order proposals automatically? (goodforecast quality)Planning with fixing horizon:high planning nervousness over BOMPlan-driven and continuous reviewSet reorder point automaticallygood forecast qualitySet reorder point automaticallygood forecast qualityNOYESYESNONOYESNONOYESYESNOYESNOY ESNOYESYESNOYESNOYESNOYESNOYESNOYESNOYES NOYESNOYESNOYESNOYESNOYESNOYESNOYESNOYES NONOYESYESNOYESNOC onfiguration of the SAP MRP Procedure ParameterTaken from 'Automatic Parameter Configuration for Inventory Management in SAP ERP/APO' by David Bucher and Joern Meissner, available at.