Time-phased Planning Process with Delivery Cycle (SAP Library - Material Requirements Planning (PP-MRP))

Time-phased Planning Process with Delivery Cycle

Use

If you have to deal with more complex situations, you can define a delivery cycle in addition to the planning cycle. In so doing, you define the days on which the vendor delivers the goods.

You enter a delivery cycle if the delivery date (or the goods receipt date) depends on the day on which you order the goods. For example, you execute the planning run and place your orders on Mondays and Tuesdays. If you place the order on Monday, the delivery is made on Wednesday. If you place the order on Tuesday, the delivery is not made until Friday.

If you use the SAP Retail System, the system proposes the delivery cycle from the vendor sub-range when you create a material master. The vendor sub-range contains all the goods of a particular vendor that, from a logistical view, can be planned similarly.

Prerequisites

In the material master (Planning calendar field in the MRP 2 view), you have defined a delivery cycle in the form of a planning calendar in addition to the planning cycle.

Features

If you start the planning run, the system uses the MRP date recorded in the planning file to check which materials are actually to be planned. The system calculates requirements independently from that, whether you have entered a delivery cycle or not. The system uses the time interval between the MRP date and the availability date for the next MRP date as a basis for calculating the requirements quantity. It also takes for granted that the vendor requires at least the planned delivery time before he can deliver his goods. This means the following (if no goods receipt processing time has been maintained):

If the MRP date is a Monday, the interval used for the calculation is from Monday to Friday, as the Friday is the goods receipt date of the next MRP date (Tuesday).
If the MRP date is a Tuesday, the interval used for the calculation is from Tuesday to the Wednesday of the following week, as the Wednesday is the goods receipt date of the next MRP date (Monday).

The material's stocks (stock plus firmed receipts in the interval) must cover this interval. If a material shortage occurs, the system creates a new procurement proposal.

The system interprets the planned delivery time as the ‘minimum delivery time’. That is, it takes at least this number of days for the goods to be delivered from the time that the order was placed. Thus, the system recognizes in the example above that if the planning run is carried out on Tuesday, the material will not be delivered until Friday and not on Wednesday.

The processing time required for the Purchasing department is taken into account. The planned delivery time plus the purchasing processing time must be smaller than the period between the date of the next planning run and the corresponding goods receipt date.