Explaining MRP Live Requests

In this lesson, you will learn about:

New MRP Live functionality
Automatic Creation of Material Requests for Provision from MRP Live

Scenario

MRP Live is the new MRP functionality delivered as part of SAP S/4HANA. MRP Live changes how SAP does MRP. In traditional MRP, MRP Jobs are scheduled by Plants or Planning Scopes (Grouping of Plants or MRP-Areas). MRP Live is scheduled for the whole Plant including all MRP Areas. In addition, the MRP Live job can be scheduled by the MRP Controller. The following chapter describes MRP Live in the context of SAP S/4HANA Defense and Security and some of the SAP Fiori apps available.

The image depicts the purchasing process flow, showing the interactions between the Requesting Unit, Supplier, and Supplier/Vendor. It includes steps such as Reorder Point, Order Reservation, Manual Request, Initial Supply, Purchase Requisition, Purchase Order, Delivery, Picking, and Goods Issue.

Process flow when purchase requisitions are created automatically by MRP live functionality.

The image shows a flow diagram depicting the process of requesting and supplying materials in an organization. The left side represents the Requesting Unit (Customer) and includes steps such as Material request, Manual PR Creation, and Planning of Provisions, which lead to a Purchase Requisition and Goods Receipt. The right side represents the Supplying Unit (Supplier) and includes steps such as Purchase Order, Delivery, Picking, and Goods Issue.

The planning of provisions can be automated. SAP S/4HANA MRP Live provides an enhanced planning method for material fulfillment. As a result, purchase requisitions can be created automatically and take planning parameters into consideration (parameters such as reorder point, batch sizes, and so on).

Difference between MRP live and Classic MRP:

MRP live cannot be run for a planning scope like - for example, one specific MRP area.
MRP live does not write the MRP list (as before, in transaction MD05 in classic MRP).
The creation indicator for purchase requisitions is not available in MRP Live. If the material is procured externally, MRP Live always creates purchase requisitions.
The creation indicator for delivery schedule lines is not available in MRP Live.
MRP Live always creates delivery schedule lines if a valid delivery schedule exists. Forecast demands cannot be planned in MRP Live on HANA.

MRP lists were intended for checking the MRP result. MRP lists were used to find materials with issues quickly. MRP lists are snapshots of the material supply and demand situation at the time of the last MRP run. The snapshot is often outdated. With HANA, stock / requirements lists can be read with high speed. The MRP apps determine materials with issues in real-time. In SAP S/4HANA MRP lists are no more necessary.

Integrated Business Planning supports all SOP features plus advanced statistical forecasting, multi-level supply planning, an optimizer, collaboration tools, an Excel-based UI, and Web-based UIs.

Advantages of MRP Live:

Faster MRP run -> more frequent MRP runs -> up-to-date information
More timely and accurate material information
Single, real-time view of material shortage information across sites
Detect and evaluate material shortages with flexible rules
Reducing material shortages improves overall supply chain performance
Find critical demands – uncovered sales order items or missing parts in production
Find critical supplies – late or overdue purchase orders or production orders
Evaluation of consequences – which sales orders are endangered by a late supply
Simulate solution viability and effectiveness in real-time
The definition of the planning scope is more flexible: MRP Live allows you to plan a set of materials with all components, materials for which a certain production planner is responsible, or one material across all plants

The image shows two components of an MRP (Material Requirements Planning) analysis. The left component is labeled Smart Business for MRP and includes features like real-time information, enterprise-wide visibility, and consumer-grade user experience. The right component is labeled Improved Solution Identification and Resolution and includes features like highlighted issues, time-critical perspective, solution recommendation, and simple solution application.

Redefining MRP is not only about improving the performance of the planning run. It is also about introducing a completely new and transformational user experience for the Material Planner. In order to change the game, the existing process has to be changed. SAP's answer is the new Smart Business for MRP (see Figure 3). The Smart Business for MRP is an example of the next generation of SAP Fiori Apps and a perfect illustration of how these apps can recreate processes, even ones that are 30 years old.

Smart Business for MRP enables the Material Planner to monitor the material shortage situation and solve issues on time and in real-time. S/he can ensure that sufficient supplies have been planned to cover external requirements - for example, for sales orders or stock transfer orders. S/he can review material situations and prevent and address material shortages before they happen.

The new Smart Business for MRP introduces new capabilities such as the ability to view the inventory position across multiple plants or analyze component requirements with real-time analytics.

An example of this is the analysis of materials with shortages (see Figure 4). Traditionally, to identify solutions to material shortages, several ERP transactions had to be executed, which were time-consuming in the past. In the new Smart Business for MRP, data is pulled in real time from all areas of material management, including procurement lead times, inventory stock availability, lot sizes, manufacturing scheduling, and sales orders across multiple sites. The system goes one step further and suggests potential solutions for the shortage. By using HANA, each solution is evaluated in real time and the user can preview the potential viability and impact before accepting a solution.

The image compares the data processing approach between classic MRP and MRP Live systems. In classic MRP, the application server calls the database server multiple times to read a lot of data, which is then transferred to the application server. In MRP Live, the data is processed in parallel using SAP HANA's parallelization capabilities, without transferring the data back to the application server.

One of the differences between classic MRP and MRP live is that MRP live can lead tables in parallel instead of sequentially.

The image compares the material requirement planning (MRP) processes in classical and parallel HANA-based approaches. The left side shows the sequential classical selection of MRP elements, while the right side illustrates the parallel HANA-based selection of material group elements at the plant level. The parallel approach utilizes the parallelization capabilities of SAP HANA to directly process the data in the database server, without the need to transfer it to the application server.

Sequential versus parallel reading of data required for MRP planning.

Streamlined Material Requirements Planning with SAP S/4HANA

The image describes the new MRP run mode called MD01N, which is 10x faster and has 5x reduced storage requirements compared to the classical MRP approach. It shows the key features of the new MRP run, including managing both external and internal requirements, handling disruptions in material availability and flow, and providing real-time visibility and customization capabilities. The image also includes screenshots illustrating the management of internal and external requirements and the analysis of MRP data.

Advantages of faster MRP live planning

Features not supported by MRP Live:

BAdIs are no Longer Supported
Planning file entries in table MDVM
Planning sequence of plants and MRP Areas in table T439C (Planning scopes)
Planning horizon
Creation indicator for purchase requisitions
Creation indicator for delivery schedule lines
Destinations for parallel processing
Subcontractor planning
Separate storage location MRP

System behavior has changed for the following:

MRP Lists are not created
Dealing with planned orders and purchase requisitions from previous planning runs
Reorder Point Planning with External Requirements

Note

It is possible to use transaction MD_MRP_FORCE_CLASSIC to force a material to run classic MRP even on MD01N.

The features that are not supported by MRP Live are subject to change. At the time of publishing, the most current and latest version can be found in SAP Help Portal, Material Requirements Planning (PP-MRP) -> Carrying Out the Planning Run Using MRP Live -> MRP Live: Incompatible Changes.

At the time of publishing, the common military customer's practice is to force MRP Classic to sustain military-specific supplier determination logic and for other reasons. Update yourself with the latest information before taking decisions in your project.