MRP Parameters Dependent on the MRP Procedures

As well as the general parameters described above, you must also determine the MRP procedure in the material master record according to which the material is to be planned. You do this by specifying the so-called MRP type.

MRP types and meaning:

VB	Manual reorder point planning: with manual calculation of the reorder level and safety stock
VM	Automatic reorder point planning procedure: with automatic calculation of the reorder level and safety stock
VV	Forecast-based planning: with forecast for planning total stock
VR	Time-phased planning
R2	Time-phased planning: with automatic calculation of reorder level
PD	MRP without BOM explosion

After you have specified the MRP procedure, you enter the parameters dependent on the planning procedure that you selected. An overview of these parameters is provided in the following table.

Parameters Dependent on the MRP Type

For...	You must maintain	You can maintain
VB	reorder level	safety stock
VM	reorder level	safety stock
VV		safety stock
		reorder level , but does not make sense
VR	planning cycle	safety stock
		reorder level
R2	planning cycle	safety stock
	reorder level
PD		safety stock
		reorder level, but does not make sense

Planning cycle

Key that determines on which days the material is to be planned and ordered. If a vendor always delivers a material on a certain days of the week, it makes sense to carry out the planning run according to the same cycle, but displaced by the delivery time. The planning cycle is entered as a planning calendar in the system. It is required for time-phased planning (see Time-Phased Planning).

Safety stock

The safety stock is used to prevent material shortfalls during the stocking-up period which may occur if consumption is unexpectedly high or if delivery dates are not kept. You have the choice between manually determining the safety stock or letting the system automatically determine it for you when carrying out the forecast. Safety stock forms a part of the reorder level and is not included in requirements planning.

Service level

If the safety stock level is to be calculated by the system then you must specify a service level. This level indicates the percentage of existing requirements which is to be covered by warehouse stock. The higher you specify the service level, the higher the system will calculate the safety stock level in order to compensate for additional consumption or delays in delivery.

Reorder level

The reorder level is only relevant for reorder point planning. In automatic reorder point planning, the system calculates the reorder level during forecasting. If a material master record is recreated, the reorder level must always be entered manually even if it is overwritten again by the system as is the case in automatic reorder point planning. It is thus possible to plan a material even if no forecast has yet been carried out for it.

If you enter a reorder level for time-phased planning, the system uses a mixture of the two planning procedures, reorder point planning and time-phased planning: materials that are planned using time-phased planning are not only included in the planning run on the MRP date, but they are also replanned if material stock falls below the reorder level due to a goods issue.

The following fields are only significant if the forecast must be carried out because of the MRP type which was chosen. For example, this is the case for automatic reorder point planning, for forecast-based planning, and for time-phased planning.

Period indicator

The period indicator specifies the time period for which the system is to store historical or forecast values. You can define the period indicator when maintaining the MRP parameters as well as when you are maintaining the forecast parameters.

Fiscal year variant

You must enter the fiscal year variant if you want to create a flexible period length equal to the accounting period for the material.

Splitting indicator

If you specify a splitting indicator, the system will only take a certain number of periods into account for requirements planning and it will also split them into smaller time periods (as long as the period indicator is not set to daily quantities). The splitting indicator is irrelevant for reorder point planning.