The MRP requirements planning is realized in the following steps:

1. Requirement and stock level comparison with planning segments for net planning.

2. Purchase order quantity calculation with calculation of the order quantities for planned orders and purchase requisitions for the requirements date of the material shortage quantity.

3. Order scheduling with the option to determine the capacity requirements for materials produced in-house.

4. Multi-level explosion of the material BOMs for the dependent requirements calculation regarding material staging quantity and date.

5. Components CH_4102 and CH_4103 (see data overview) are defined as semi-finished products. External procurement is not defined for material type HALB in the standard system. To restrict the amount of master data, however, we have defined external procurement for both of these material master records. Material CH_4101 has a special setting: up to a lot size of 1000 kg the material is to be procured externally. If the lot size is bigger, the material is produced in-house.

Situation: A component is to be procured externally if the requirement exceeds 1000 kg per day. If it is bigger, the component is produced in-house.

CH_4100 Finished product

CH_4101 One of the components

Quota arrangement usage 3 must be defined in the MRP2 view.

As the lot-size procedure, you must use a procedure for which the split indicator has been set in Customizing.

The following quota arrangement has been defined:

Plant 1100

Material CH_4101

Minimum quantity for splitting quota: 1000

Procurement type for 1: F

Procurement type for 2: E

Vendor for 1: 1060. An info record must have been created for this.

Quota for 2: 100

Priority for 1: 1

Priority for 2: 2

„The minimum quantity for the splitting quota determines that the lot has to amount to the minimum quantity (at least) before it can be split to several sources of supply during the MRP run." (SAP Library Material Requirements Planning)

In this case, this means that the system applies the splitting quota if the lot size exceeds 1000 kg. This quota is 100 for in-house production and 0 for external procurement.

"If the lot size is smaller or the same as the minimum quantity, the normal quota arrangement logic is used." (SAP Library Material Requirements Planning)

This means that the system applies the settings made beside the quota arrangement logic if the lot size is less than or equal to 1000 kg. Only the priorities remain. External procurement has first priority. This means that a purchase requisition/planned order with profile NB is created.

By deleting the priorities from the quota arrangement, you can easily proof that the priorities are decisive in the latter case. You then remove the setting from the material type, and for semi-finished product this means in-house production.