In this example, 25,000 kg of the product Resin is manufactured in boilers with a capacity of 5,000 kg per charge. The quantity of our material Resin is split up into 5 charges of 5,000 kg each. Once the material has been produced, a separate batch number is assigned to each charge. Since each batch produced is unique, the actual values for the batch specifications must first be defined in the laboratory.

For the purposes of our example, material viscosity is defined for our production as follows:

• A viscosity of 10 - 20 indicates a grade I material

• A viscosity of 21 - 40 indicates a grade II material

The following values are ascertained in the laboratory for our first batch produced:

Every single batch of the product Resin indicates the precise rate of viscosity. In our example, the batch has a viscosity rating of 15, and is thus classified as a grade I batch by quality management.

Our batches are now stored in 50-liter barrels and 10-liter canisters. Sales and Demand Management Planning now needs to be carried out separately for each grade of our product Resin and for each type of packaging. The individual MRP requirements for the batches to be produced must be determined for each range of viscosity.

MRP must take into account the grades of the material, and also the packaging vessels in accordance with requirements. To plan the packaging vessels, material BOMs are used.

In order for these requirements to be reflected in the SAP Logistics system, you set up the following material master records for the product Resin:

The following graphic shows how the packaged goods are organized:

The table below shows a BOM for the product Resin, grade I, filled in 10-liter canisters.