Planning with MRP Areas 

The implementation of MRP areas provides more clarity and allows you to differentiate to a greater extent within a plant when planning material requirements.

The MRP area represents an organizational unit for which you can carry out material requirements planning independently.
The results of the planning run are displayed specifically for each MRP area.

Every MRP area can correspond to, for example, a production storage location of an assembly line, a service storage location or stock with a subcontractor. You can specifically plan dependent requirements and independent requirements, for example, spare parts, for individual MRP areas. In order to be able to plan independent requirements of a material, you can create a sales order with reference to a storage location, which belongs to an MRP area, or you can enter planned independent requirements specifying the MRP area in demand management.

 

MRP at Plant Level

 

Up to now, material requirements planning had been carried out at plant level. The various requirements were combined in the planning run and procurement elements were created for these pegged requirements with unknown sources. The following illustration shows the procedure used up to now:

 

MRP for MRP Areas

Example: Assembly Area

Material requirements planning for each MRP area allows you to have specific control over the staging and procurement of parts produced in-house and purchased parts for each shop floor and assembly area. If, for example, you define an MRP area for the production storage location of an assembly line, the system plans the material requirements for the assembly line separately from all other requirements.

See also: Planning Components for a Production Line.
The illustration shows the new procedure:

 

Example: Subcontractor

You can also carry out Planning for Components to be Provided in Subcontracting using an MRP area by defining an MRP area for every subcontractor and assigning the components to be provided to the MRP area of the subcontractor. You therefore plan the requirements to be provided for these components for one subcontractor separately from all other requirements.

The following illustration represents the procedure for material requirements planning for individual subcontractors, whereby each subcontractor corresponds to an MRP area.

Depending on the requirements situation, the system creates either Stock Transfer Reservations from the plant to the stock of material provided to the subcontractor or it creates purchase requisitions within Subcontracting/Third-Party Order Processing, according to the special procurement key settings.

The stock transfer procedure is as follows:

 

The subcontractor third-party processing procedure is as follows: