Introducing Material Requirements Planning (J44)

Objectives
After completing this lesson, you will be able to:

After completing this lesson, you will be able to:

  • Introduce material requirements planning (J44)

Introduction to Material Requirements Planning (J44)

How to Access SAP S/4HANA Cloud, public edition Solution Process Flows and Test Scripts

  1. Navigate to SAP Signavio Process Navigator.
  2. Scroll down to the recently added solution scenarios and choose the SAP Best Practices for SAP S/4HANA Cloud, public edition entry.
  3. In the left area, choose the tab Solution process and select the business area entry Manufacturing.
  4. In list on the right, search for the solution process of interest.
  5. Select the solution process to view the details and the process flow and scroll down to the Accelerator section to access the test script.
Note
You can ignore the SAP Cloud ALM version of test scripts at this point.

Description

This process enables your material requirements planning (MRP) department to automate the procurement planning. The main function of material requirements planning is to guarantee material availability and to avoid delays in order fulfillment. The planning run checks availability of each material and, in case of shortages, creates purchase requisitions or delivery schedules if a scheduling agreement exists. Remaining shortages are displayed in the MRP app where the material planner can analyze the situation.

Procurement lead time can be longer than the time available to fulfill a demand. For this reason, you must procure the material in advance and cover your demand from stock. This process starts by creating forecast demands that are interpreted as expected customer demand. The MRP schedule runs. The system creates purchase requisitions or scheduling lines that trigger external procurement.

Optionally, purchase requisition handover and MRP material exceptions can be handled.

Key Process Steps

  • Manage demand forecast as Planned Independent Requirements (PIRs) manually

  • Calculate from consumption data to forecast and from forecast to PIRs automatically

  • Monitor and manage material coverage

  • Run material requirements planning (MRP) for materials with shortages

  • Evaluate the results of the MRP run

  • Hand over of purchase requisitions if needed (optional)

  • Display MRP run material issues and key figures

  • Detect and resolve MRP material exceptions

Benefits

  • Detect shortages quickly

  • Create purchase requisitions or scheduling lines to cover demand automatically

  • Get higher accuracy of purchased quantities

  • Do a handover for the purchase requisition (optional)

  • Save costs through process automation

  • Detect and resolve MRP material exceptions

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