Material requirements planning (MRP) performs the following functions:
- It explodes an assembly’s bill of material (BOM).
- It generates planned production orders or purchase requisitions for the components.
- It calculates the basic order dates (planned dates).
MRP Logic
The following table lists the logics that MRP uses to calculate the basic order dates for various materials:
| Material | Logic |
|---|---|
| Internally procured | Lot-size-independent or lot-size-dependent in-house production time |
| Externally procured | Planned delivery time |
It is possible to calculate the in-house production time for a material using lead-time scheduling of a routing without an order and then copy the time to the material master.
Scheduling in Production Planning
Before you execute an MRP run, you would like to know what duration your routing will have. Therefore you do a direct scheduling of your routing.
Scheduling of In-House Production Time
When you did a routing scheduling the calculated values could differ from the ones, entered inside MRP view of your material master.