SAP MRP ConfigurationActivating MRP and Planning File Entrya) Activating SAP's Material Requirements Planning (MRP)

This configuration allows you to choose the plant for which you would want toactivate SAP Material Requirement Planning(SAP MRP). Activating MRP for the plant allows one to use the SAP MRP tool for the plant. SAP Transaction code OMDU and the SAP path is Logistics > Production > MRP > Planning File Entry > Activate MRP and Set up Planning File

b) Activating Planning File Entries for a Plant

Activating Planning file entry for the plant(through a variant that can be rescheduled) allows you to collect all the material in a planning file list, which has an MRP Type in the material master MRP 1 View (other than MRP Type XO)The process of recording a planning fileentry for a material, can be run periodically using a batch job scheduling method. The transaction code to set up the variant and period scheduling is OMDO and the Path for activating the planning file set up is Logistics > Production > MRP > Planning File Entry > Activate MRP and Set up Planning FileAll the entries in the planning file will have a change indicator specifying that a material has undergone a change (change in receipts elements or issues elements). This indicator will help you to choose only those materials that have undergone a change, through the use of planning key called Net Change Planning when running MRP.The planning file record for a material also has a net change planning in the current horizon field which will be set if the change in the materials receipt or issue element is valid in the planning horizon. This indicator will help you choose only those materials which have undergone a change in the planning horizon; through the use of a planning key, in an MRP run, called Net change planning in the planning horizon.Plant Level configuration for MRPPlant Level configuration for MRPSAP MRP is run at plant level or at a group of plant level (called as scope of planning), thus the MRP configuration is done at Plant level.The configuration done for SAP MRP at Plant level would also be true for SAP Consumption Based Planning (SAP CBP) settings.Transaction code OPPQ takes you in to the SAP MRP configuration called as Plant Parameters for Material Requirement Planning. The Path which can be used is Logistics > Production > Material Requirement Planning > Plant Parameters > Carry out Overall Maintenance of Plant Parameters.The Transaction code for Consumption Based planning is OMI8 and the Path is Logistics > Materials Management > Consumption Based Planning > Plant Parameters > Carry out Overall Maintenance of Plant Parameters.Fig MRP - Config 1In the transaction code for Plant level parameters for SAP MRP, you should first input the plant and press the maintain button.If you have already maintained the configuration for the parameters, then it states so, if you havent then it simply says To Maintain next to the parameter

Fig MRP - Config 2Following are the parameters that need to maintain as a part of SAP MRP/CBP Configuration:

a) Number rangesThe number range IDs are maintained for the following objects:the Planned ordersthe reservations,the dependent requirements,the simulative dependent requirements,the purchase requisitions,the MRP Lists,In this section only the number range IDs are maintained. While the actual number range is configured, for the number range ID, using a transaction code OMI2 (for the above mentioned objects created in the planning run). One can also use the transaction code OMI3 for the objects created manually in the front end.Every number range interval, created using OMI2 and OM13, has an ID, which can be allocated to the objects at plant level, i.e., every plant can have a different number range for the objects mentioned above.b) Availability Check rule for Backorder ProcessingAs per standard SAP, the Availability checking rule for the backorder processing is PP, though you can have your own availability check rules created or configured.Every Availability checks rule (availability checking scope defined) has a set of receipts (Purchase orders, Production orders) and issues (Sales orders, dependent requirements, reservations, planned independent requirements etc) which are to be considered or not to be considered during the SAP availability checks.To have the checking rule work along with the configuration, you should have the Availability checking groups maintained in the material master. The Checking groups are configured to be associated with the checking rules (checking scopes).The availability checking rule (checking rule scope) has to be maintained, for a given SAP functionality and it has to be assigned to the availability checking group maintained in the material master. The SAP functionalities that use availability checks to check the availability of the header materials as well as components atthe plant at the time of sales order creation, the availability checks of the header material at the time of sales order delivery, the availability checks for components in production thus reporting the missing parts list, the backorder processing etc.c) ReportingThis configuration is used for the following purposes.To configure the objects, which are to be considered in the calculation of the receipts days supply like the production orders/process orders, firmed planned orders, purchase orders, assigned planned orders, firmed purchase requisitions, QM Inspection lots, reservations, safety stocksTo configure the reporting of periods totals in terms of a defined period (day, week, month, periods as per planning calendar) of in Stock requirement list, MRP list, simulative MPR or interactive MRPd) MRP ControllersThis is a mandatory configuration. Here you can configure the list of MRP controllers for the plant. A MRP Controller is a person or a group of people, which is responsible for planning a material or a given list of materials.You have to assign the MRP controller to the Material Master MRP 1 View, so as to delegate the responsibility of the planning and evaluation of planning for that material.e) FloatsFloats are buffers in the total lead time, that are provided in production/process order or in the planned orders created manually or during an MRP run. The schedule margin key is used in the Material Master MRP 2 View. It is used in MRP as well as in production order.The floats are defined using the scheduling margin key.Opening period:Number of working days between the date that the order is created and the planned start date. This time is available for the MRP controller to convert a planned order into a purchase requisition or a production order.Float after production:Number of working days between the scheduled finish date and the order finish date; used as a float in production scheduling.Float before production:Number of working days between the order start date and the scheduled start date; used as a float in production.Scheduling release period:Number of workdays between the planned start date and the date for releasing the order. If the order release indicator is set, the production order is released by a background program that takes all dates into account.PlantPlant NameMargin KeyOpening Period (In Days)Fl. Before Production (In Days)Fl. After Production (In Days)Release Period (In Days)

000100010015225

000100010025335

000100010025445

f) Special ProcurementThe special procurement function helps you to configure and assign special procurement to the materials which can be used during an MRP run while creating the procurement proposal.The special procurement functions are withdrawal from alternate plant, production in alternate plant, subcontracting, direct production, phantom item planning,https://sites.google.com/site/sapswords/home/learn-sap-pp/sap-material-master/sap-mrp2-viewExample: For Stock Transfer from Plant C001 to Plant C002Create the Special procurement key (Key number = 12 as an example) in the plant C002 with the procurement type as F and special procurement as U (Stock transfer) and the special procurement plant as C001. Normally when creating the special procurement key use Z, Y or X to the Key number, so instead of having Key number as 12, we could have something like Z2 or YA etc.

Fig MRP - Config 3Similarly for Withdrawal from Alternate plant, you could have a Configuration as below:

Fig MRP - Config 4Similarly for Subcontracting, you could have a Configuration as below:

Fig MRP - Config 5Similarly for Production in alternate plant, you could have a Configuration as below:

Fig MRP - Config 6g) Conversion for Planned ordersIn this configuration parameter, you can maintain the production order type or the process order type, which the system should use as default during the planned order conversion. Setting defaults in the plant parameters configuration allows the system to fix and select the order type for a plant during the conversion process.Note: This can be a useful tool when you are using one production order type and one process order type, but if you are using multiple production/process order types, then you should not be maintaining defaults here.Also for the purchase requisition conversion, you are given an option in the configuration to define the maximum number of planned orders that can be converted in to Purchase requisition.

Fig MRP - Config 7g) Dependent Requirements availability checkWhen carrying out the availability check for each of the components in a MRP BOM explosion, the system needs to know the availability checking scope rule. Again we would maintain the standard Checking rule as PP or you could alternatively configure one for yourselves.h) BOM/Routing Selection IDThis configuration parameter is really important and it is mandatory to maintain one, since it helps selection of BOM and task lists in the planned orders. Though there is one more place in the planned order Scheduling parameters MRP configuration, where you can maintain the selection ID for selection of the Task lists (Routing/Recipe/Rate Routing).A selection procedure is set to select BOM or Routing/Recipe on priorities set for the BOM usage or for the task list types and the task list status. Knowing the selection procedures allows the MRP run to select the right BOM and task list for the planned orders.In other words, you could have the BOM Selection being set for selection of the Production BOM Usage first and if a BOM for the material with the Usage production (Usage = 1), is not found, you could have the system search for a BOM of universal Usage (Usage = 3).Similarly, you could have a task list of type Routing or Recipe or reference operation sets selected and set in priorities of selection (1st Routing, 2nd Reference operation sets, 3rd,which has a Status Released for all purposes or released for costing) etc.h) Scheduling of Planned ordersThis configuration parameter is really important and it is mandatory to maintain one. It allows you to set the control parameters for scheduling of planned orders of type LA at a given plant and for a given MRP Controller. You can leave the MRP controller as * to have the scheduling parameters true for all the planned orders across all the MRP controllers.The following control parameters can be configured here:The Routing/Recipe Selection ID, specifying the routing/recipe that would be selected for detailed scheduling, as per the priorities set for task list type and task list status.The Detailed scheduling, using the task list is only carried for thescheduling Horizonmentioned, i.e., if the planned orders dates lie beyond the scheduling horizon, then the basic date scheduling is used where the in house production times from the material master is used.Allow Scheduling Indicatorallows the planned orders to be scheduled using the detailed scheduling or basic date scheduling, either of the two, depending upon the availability of the task list and scheduling type selected for the MRP run.Generate Capacity requirementsindicator allows generation of the capacity requirements for the work centers and loads them accordingly. The loading of the work centers is as per the use of the work center determined through the scheduling carried out.The Task list selection, scheduling horizon, scheduling indicator and the capacity indicator can also be set forrough cut planningused for Long term planning purposes.The next configuration parameter talks about the configuration of the selection of thetype of scheduling levelthat should be used for adjusting the basic dates of planned orders. The various options available are rate based scheduling, lead time scheduling, scheduling using takt times.TheAdjust planned order datesconfiguration option allows you to readjust the scheduling results or the basic dates every time you carry out Scheduling. Though there is one more scheduling configuration option provided by the system for overwriting/adjusting the existing basic dates by the new dates arrived at, through rescheduling (using the scheduling level as mentioned).The system not only offers an option to adjust the basic dates for the planned order arrived at by using the scheduling level set, but it also setting the dates of the dependent requirements to the operation start date or the order start date.This configuration not only adjusts or sets the dates of the header planned order and the dependent planned orders, but it also generates capacity requirements for the same.See below for the details of adjusting dates in scheduling and adjusting dates for capacity requirement generation:You can adjust the Basic Dates of the header planned order using the scheduling level and adjust (or set) the dependent requirements to the start of the header planned orderYou can adjust the Basic Dates of the header planned order using the scheduling level and adjust (or set) the dependent requirements to the start of the respective operation to which the dependent requirements are assigned toYou can decide not to adjust the Basic Dates of the header planned order arrived at by using the scheduling level and at the same time not-adjust (or not set) the dependent requirements to the start of the header planned orderYou can decide not to adjust the Basic Dates of the header planned order arrived at by using the scheduling level and at the same time not-adjust (not set) the dependent requirements to the start of the respective operations to which the dependent requirements are assigned toYou are also provided an option to configure thescheduling type whether forward or backward scheduling. It is a normal behavior for the standard system to have this configured as backward scheduling so that SAP MRP (material requirement planning) never misses the customer delivery date or order availability date. An option is also provided to not-to-schedule, any orders during the breaks set in the factory calendar.Start date in the in the pastoptions allows you to push the start date of the planned orders to a certain number of days in past. If the order start date goes beyond the number of days allowed, then the system uses the concept of todays scheduling and sets the start date of the planned order to todays date and carrying out forward scheduling there-after.One of the scheduling parameters is reduction measures, used to reduce the total order lead time in circumstances designed. You can avoid configuration of reduction measures, if you are not using it.

Fig MRP - Config 8i) Default Values for External ProcessingFor external purchasing, one can maintain the default lead time required for conversion of Purchase requisition into purchase order, using the planned delivery lead times from the purchase info record or purchasing agreement. So as to use the planned delivery times from the purchase info record, one should also maintain the source list for the material, with the same vendor in the source list and the purchase info record.Using the planned delivery times from the material master or from purchase info record, is totally a decision of the consultant. It is indeed a nice additional option provided by SAP for using the lead time from info records.j) Planning HorizonMaintaining a planning horizon helps the system to plan only those demands, which fall in the planning horizon starting from today. When an MRP Run is taken, the planning horizon is number of work days as mentioned (lets say 180 days) from todays date; the system would not plan any orders whose start date lies beyond this horizon.k) Available stock for net requirement calculationsSAP MRP offers you a choice to select the most controversial stock types, in its net requirement calculations. The stock types are stock in transfer (stock in transfer is considered as stock at the receiving plant as it is already issued from the sending plant), blocked stock, restricted batch stock (stock of batches marked with restricted batch)

Fig MRP - Config 9l) Option to trigger direct Production in MRP or in production planningj) Allowing start date in the past

MRP Group Level configuration for MRPMRP Group Level configuration for MRPThe entire configuration that is created as a part of SAP MRP Plant level parameter in the above steps can be also set for an MRP Group. You can group materials using MRP Groups. Each of the MRP Group can have its own MRP Parameter set. You can set the MRP group in the material master MRP 1 View.MRP Group can be maintained using transaction code OPPR or the transaction path Logistics > Production > MRP > MRP Groups >Advantage of working with MRP Groups:Working with MRP groups can be convenient for a plant or an organization, since by assigning the MRP groups to a set of materials, would allow planner to configure these materials (through MRP Groups) to behave in a certain manner for planning purposes. In other words, all the materials in the group would then have a unique planning method or unique planning features. Thus the organization can device multiple MRP groups with their own planning features and characteristics rather than having one set of planning features set at the plant level. The group could have its own unique:Strategy group,Conversion order types,Planning horizon,Planning time fence and roll forward periods,BOM and task list selection IDs,Direct procurement parameters,Planned order scheduling parameters,Start number of days allowed in the pastAvailability checking groups,Strategy GroupsThe strategy groups can be set for a given MRP group at a given plant. The strategy group consists of a number of planning strategies assigned in a sequence of priorities. In other words, the strategy groups, groups together the relevant planning strategies of a material. If you dont see the default strategy groups, then we would have to manually maintain the strategy groups on the materials MRP 3 view. Defaulting the strategy groups is a nice idea when the strategy groups would remain the same across all the materials which would be assigned with a given strategy group.For example:A material can have the priority 1 strategy as Made-to-Stock (planning strategy 40) and then priority 2 planning strategy as Made-to-Order (planning strategy 20). Assigning this strategy group for a MRP group in the MRP Group Parameters configuration and then subsequently assigning the MRP Group to the material master would make the material work on a planning strategy 40 and planning strategy 20 in a sequence of priority.The primary strategy for the material is 40 Made-to-stock while the secondary strategy is 20 Made-to-order, which means that every time you plan or produce a material or create a sales order for the material it will always primarily work as a made-to-stock material. Nevertheless, you can also make to material work as a made-to-order material, by changing the requirement type KE of the material in the sales order procurement tab, to suit for made-to-order, which the system would allow since the materials secondary planning strategy is made-to-order.Configuring SAP MRP TypesConfiguration of SAP MRP TypesIn all probabilities, MRP Types is not something which one should configure in SAP; it is used as a standard configuration. Nevertheless, a consultant should know the importance of MRP types and the involved pre-configured parameters.

Fig MRP - Config 10

a) MRP ProceduresMRP Procedures defines the type of MRP to be used Reorder point planning methods, Material requirement planning or demand based planning methods, Forecast based planning methods, Time phased planning methods, MPS and the no planning procedures to mark a material with a MRP types that does not plan a material at all.b) Firming TypeIn the category of MRP procedure called MRP or demand based planning method and MPS, SAP offers 8 different MRP types with Firming namely P1, P2, P3, P4 and M0, M1, M2, M3, M4.When working with the planning time fence, one needs to set the firming methods & the scheduling methods of the procurement proposals within the planning time fence.Firming type01234

MRP TypesM0P1M1P2M2P3M3P4M4

Firming Methods for Procurement Proposals in the Planning time fence

No Firming of Procurement Proposals within the planning time fenceX

Automatic Firming of Procurement Proposals within the planning time fenceXX

Manual Firming of Procurement within the planning time fence (No Automatic Firming of the procurement proposals )XX

Treatment with New Order Proposals in the Planning time Fence

Automatic Creation of New Procurement Proposals to cover the shortages within the planning time fence. But the dates of these new Procurement Proposals are pushed outside the planning time fenceXX

No New Procurement Proposals created to Cover the material shortages within the planning time fenceXX

c) Include External RequirementsThe inclusion of external requirements in net requirement calculations is available to be set, when you are working with reorder point planning based MRP types. Actually there are 2 options in this field, i.e., include external requirements in the total planning horizon or restrict the inclusion of the external requirements only within the replenishment lead time.For example:If the external requirements are set to be considered in the total horizon (of 7 weeks) then in the todays MRP run, the Customer demand will be considered as it falls in the planning horizon and it will reduce the warehouse stock proportionately which would trigger the reorder point planning procurement once the stock falls below the reorder point.If the external requirements are set to be considered in the Replenishment lead time, lets say the Replenishment lead time is 1 week, then in that case, only in a MRP run triggered one week before the start date of the external demand, this customer demand will be considered, thus triggering reduction in warehouse stocks.

Fig MRP - Config 11SAP also offers an option to select the additional external requirements that should also be included in the net requirement planning calculations like the - components supplied to the vendor in a subcontracting case, reservations set for the components in a production order, reservations of components in plant maintenance orders, requirements to satisfy the Stock transfer order to another plant, stock transfer requisitions created for Stock transfer orders, requirements raised because of stock transfer delivery schedules.c) Forecasting for MRPForecasting MRP Types have a forecasting indicator as obligatory, unlike other MRP types which normally have the forecasting indicator set to optional.Also the historical data is updated in the material master as total consumption (planned consumptionplusunplanned consumption) or unplanned consumption. When the consumption is planned as per the MRP reservations, planned consumption is updated and when the consumption is not planned as per the reservation or is greater than the reservation quantities, then unplanned consumption is updated.In MRP type configuration, you have an option of choosing the type of historical consumption of a material to be used for planning whether total consumption (planned + unplanned consumption) or unplanned consumption.After choosing the historical date type, you should configure, the type of forecast requirements to be considered in MRP planning run, whether total consumption (planned + unplanned consumption) or unplanned consumption.The reduction method for forecast requirements is also configurable. The default is reduction by consumption.d) Planning methodThe MRP type offers you to plan the materials in an external system, like the MRP Type X0. The indicator called the planning method allows you to choose external planning so as to plan materials in the external system.e) Automatic CalculationsYou can have the safety stock and the reorder point calculated automatically by the system, when you are using the automatic reorder point planning methods. In the automatic calculations the system uses the forecast data.Configuring SAP MRP Scope of Planning for the Total Planning RunConfiguring SAP MRP Scope of Planning for the Total Planning RunSAP provides an option to plan multiple plants together or multiple MRP areas in one planning run in a sequence. Transaction code OM0E can be used for configuration or the logical SAP path SAP Customizing Implementation Guide > Production > MRP > Planning > Define Scope of Planning for Total Planning, can be used to configure.Step 1 Define the Name of the Scope of planning runStep 2 Define the plants or MRP areas to be included in the planning run arranged in a sequence. The sequence is defined by the first field calledConfiguring SAP MRP Planning time fence and Roll Forward PeriodConfiguring SAP MRP Planning time fence and Roll Forward PeriodThe transaction path to configure the planning time fence and roll forward period is: SAP Customizing Implementation Guide > Production > Material Requirements Planning > Planning > MRP Areas > MRP Calculation > Define Planning Time Fence and Roll Forward PeriodPlanning Time Fence:The planning time fence is the number of work days, within which you can protect the master plan (or in other words the procurement proposals of a master plan) from being disturbed or changed from any automatic changes (of an MRP Run). The procurement proposals are firmed so as to protect them from any changes. The firming of the procurement proposals (planned orders, purchase requisitions, delivery schedules) in the planning time fence prevents the proposals in the time fence from being adopted in the next planning run.In other words, in the planning time fence, the system does not create or delete any procurement proposals nor does it changes the existing proposals.The system calculates the time fence from todays date plus the number of days mentioned as planning time fence in the material master or in the MRP configuration (where you can define the planning time fence for plant or for a given MRP group). It is needless to say that any new requirements are not included in this time period nor the existing requirements are changed. MRP carries its usual planning outside this fence without interrupting this fenced period.Configure Planning Time fence and Roll Forward Period

PlantMRP GroupPlanning Time fenceRoll forward Period

00010001143-

00010002142-

It is logical that any procurement proposal lying outside this fence would start moving in to the fence one by one; when the fence moves ahead on the time scale. When they move in to this fence, they are automatically firmed for protection.Firming for automatically created procurement proposals:The automatically created procurement proposals in the MRP Run are not firmed by the system, so that they are available for adjusting dates and quantities in the next planning run, in cases where there is change in BOM or task list.You can though manually firm the planned orders individually or collectively using transaction code MD19Note- Automatically created planned orders in the planning time fence are only remain firm till they are in the planning run.Firming for manually created procurement proposals:For manually created or changed procurement proposals or even when you reschedule the planned order in the graphical planning table, the system always marks them with a firming indicator. Though you can remove or delete this firming indicator.Firming for components planned orders:In case of a planned order, you can manually firm it by selecting the firming planned order Indicator in the planned order header. And in order to make sure that the BOM levels below are not exploded or changed in a planning run, you have to set the firming components indicatorSee the below Example Planning time fence is 3 days.Planning Start Date

Today Day 1Day 2Day 3Day 4Day 5Day 6Day 7Day 8

Planning time fence

Planned Order 1Planned Order 2Planned Order 3Planned Order 4Planned Order 5Planned Order 5Planned Order 6Planned Order 7

Auto FirmedAuto FirmedAuto FirmedNot-firmedFirmedNot-firmedNot-firmedNot-firmed

Next Planning Start Date

Planning time fence

Planned Order 4Planned Order 5Planned Order 5

Auto FirmedAuto FirmedAuto Firmed

Roll Forward PeriodThe Roll Forward Period adds the functionality of automatic deletion of firmed planned orders, from the master plan. It also creates new proposals to cover any requirements pending during the MRP run. This period can be defined for number of days in past or future. The system deletes all the firmed planned orders that lie before the roll forward period.Using the roll forward period, you can have the system delete all useless old firmed planned orders, which otherwise the system would never had deleted, since they were firmed. This allows for reorganizing the planned orders.Configuring SAP MRP AreasConfiguring SAP MRP AreasLong ago, SAP MRP was only at the plant level or at MRP controller level (activated through a user exit). Then SAP came up with the concept of running MRP at MRP areas. You can define your own area for which you want to run MRP without disturbing other areas.Running MRP for MRP Areas:For running MRP at a MRP area, you would have to create a scope of planning in MRP configuration, which contain the MRP area or a set of MRP areas arranged in sequence of planning.Assigning MRP areas: To have the MRP Areas work, you have to activate the MRP areas and then create them and then assign them to the material master MRP 1 view. If a MRP area is not assigned to the material, then it will work as per the plant level MRP area.Configuring MRP areasStep 1:Activate MRP Area: Use the transaction path: SAP Customizing Implementation Guide > Production > Material Requirements Planning > Master Data > MRP Areas > Activate MRP for MRP AreasStep 2:Define MRP Areas: Use transaction path: SAP Customizing Implementation Guide > Production > Material Requirements Planning > Master Data > MRP Areas > Define MRP AreasTypes of MRP Areas:Plant MRP Areas: You can create one MRP area for several plants, so that when you run the MRP for this MRP area, the run is for all the plants configured in the MRP area.Storage Location MRP Areas: You can create MRP areas for several storage locations at a plant. You cannot use one storage location in multiple MRP areas.Subcontractors MRP Areas: You can create MRP areas for several subcontractors for a plant. You cannot use one subcontractor in multiple MRP areas.Configuring SAP MRP Dynamic Safety Stock (Range of coverage Profile)Configuring SAP MRP Dynamic Safety Stock (Range of coverage Profile)The Range of coverage profile is configured for the use ofDynamic safety stock for a given material. The range of coverage configuration contains the parameters for the calculation of the dynamic safety stock. The dynamic safety stock is a stock calculated based on the average daily requirements for a period rather than the actual requirements over the period, therefore it is more statistical value rather than an absolute value.Safety stock as we know is used to cover the fluctuations in the requirements, so is the dynamic safety stock, the only difference being, the safety stock is an absolute value provided directly for a material whereas the dynamic safety stock is calculated by the system on the basis of the coverage period and average daily stock calculated internally by the system.The Dynamic safety stock is calculated in every planning run.The transaction path is: SAP Customizing Implementation Guide > Production > Material Requirements Planning > Planning > MRP Calculations > Define Range of Coverage Profile (Dynamic Safety Stock)Range of coverage Configuration:

Fig MRP - Config 12Configuration for calculation of average daily requirement for a periodPeriod indicator - Indicate the type of period, whether week or month or according to PP planning calendar. (Lets say it is W Week)Number of Periods Number of periods used to calculate the average daily requirements (Lets say it is 13 Weeks)Type of Period length It defines the number of days in the period, if the period length is in terms of workdays, then the factory calendar work days are considered, if the period length is in terms of calendar days then it is considered in terms of Gregorian calendar, and if it is terms of standard days, then you would have to enter the number of days in a period in the configuration (Lets say that the configuration was done with workdays and the factory calendar has 7 days per week)Therefore Average daily requirement== Requirements in the period (Requirements in 13 Weeks Lets say 910 Units)/(Number of Periods Lets say 13 Weeks) * (Number of days in the period Lets say 7 days)= 910 / (13*7)= 10 UnitsConfiguration parameters for calculation of Dynamic Safety Stock for the Range of CoverageYou can define 3 different range of coverage minimum, maximum, and target range of coverage, which is used to calculate 3 different stocks using the average daily requirements (range of coverage multiplied by the period length). The Target range of coverage defined here would be used to calculate the Dynamic Safety Stock for the period of the coverage.The Period of the coverage is specified in the configuration. The coverages and the periods for which they should work for, are defined for 2 separate period lengths and the 3rdperiod length is for the rest of horizon.In the example, we have defined the safety stock to cover a period of 7 days (minimum, target and the maximum range of coverage). The minimum, target and the maximum stock is calculated for the average daily requirement over the respective coverage periods.You can check the minimum, maximum, target stock levels, minimum range of coverage, maximum range of coverage, target range of coverage in the MRP List or Stock requirements listsPeriod Total DisplaySection.As per our example, for the first period of 13 weeks, all the 3 stocks levels minimum, maximum, and target stock levels would be 70 Units and for the next period of 26 weeks it will be 70 units as well and for the rest of the horizon it will be 70 units again.Normally when the available stock falls below the minimum stock level, SAP planning run, would immediately create planned orders to suffice at least the target stock level. For example if the minimum stock level is 30 and the maximum is 80 and the target stock is 50 units, then if the available stocks fall below the 30 units mark, SAP creates a procurement proposal for 50 units to reach back to the target stock level. Whereas in the example below, all the 3 stocks types are 70 units, therefore when the stocks fall below the 70 units, the system will try to raise a procurement proposal to reach back to 70 units.As per our example in the configuration screen shot Dynamic safety stock formula summarized as = Average Daily Stock * Range of coverageDynamic safety stocks for the 1st period of 13 weeksDynamic safety stocks for the 2ndperiod of 26 weeksDynamic safety stocks for the rest of the Horizon

Minimum safety stock70 Units70 Units70 Units

Target safety stock70 Units70 Units70 Units

Maximum safety stock70 Units70 Units70 Units

Another Example of Dynamic Safety Stock

Fig MRP - Config 14Step a) Demand for 8 Weeks = 800Step b) Average Daily Requirements= 896 Units of Demand for 8 Weeks / (8Weeks * 7 Days Per Week)= 896/(8*7)= 896/56= 16 UnitsStep c) Calculation of Safety Stock for the coverage periodAs per our example in the configuration screen shot For the first period, when the stock falls below 32 units (minimum Stock Level), the SAP MRP run would create the procurement proposals (Lets Say planned order) for a quantity to suffice at least the target safety stock level or the dynamic safety stock level = 8 Units.Dynamic safety stock formula summarized as = Average Daily Stock * Range of coverageDynamic safety stocks for the1st periodof 8 weeksDynamic safety stocks for the2ndperiodof 8weeksDynamic safety stocks for therest of the Horizon

Minimum safety stock= 2 * 16 = 32= 2 * 16 = 32= 2 * 16 = 32

Target safety stock= 5 * 16 = 80= 5 * 16 = 80= 5 * 16 = 80

Maximum safety stock= 7 * 16 = 112= 7 * 16 = 112= 7 * 16 = 112

Configuring SAP MRP Day's Supply and Receipt Day's SupplyConfiguring SAP MRP Day's Supply and Receipt Day's SupplyThe days of supply is not a mandatory configuration, you can only configure the days supply if you feel the SAP pre-configured ones are not what you want.SAP offers 2 types of evaluations in SAP, the days supply and the receipt days supply.In the SAP MRP Evaluation transactions such as stock requirement list or MRP list, the days supply would calculate the number of days on the time axis, till the material requirements can be satisfied purely by the current available stock.While the Receipt Days supply would indicate how long would the current stock and the expected receipts would cover the requirements. There are 2 receipt days supply evaluations offered by SAP called as the receipt days supply 1 and receipt days supply 2. SAP offers a configuration to select the receipts elements for receipt day supply 1 and 2 evaluations. There is also an option to have the receipt days supplies to be calculated when the stocks fall below the safety stock or below the current available stocks.The days supply values or the receipt days supply values can be correlated with the range of coverage concept. These tools comes with traffic lights red, yellow and green which offer warnings to the MRP Controllers/users and lets him/her strategically know when the material stock would be totally consumed out, which would help the planner to foresight and take necessary actions in advance.The transaction path for the same is SAP Customizing Implementation Guide > Production > Material Requirements Planning > Evaluations > Define Receipt Elements for Receipt Days' Supply

Fig MRP - Config 13Number of Days Stocks will Cover the RequirementsDays SupplyReceipt Days Supply 1Receipt Days Supply 2

Consider Current Stocks only in calculation of Days Supply

Only Consider Current available Stocks to cover RequirementsX

Consider Receipts also along with Current Stock in Calculation of Days SupplyFirmed Planned orders, Planned orders assigned with Production versions, Purchase orders, Schedule lines, Firmed Purchase Requisitions, Receipt Reservations, Shipping Notifications

Consider all the possible receipt elements along with the plant stockExample Firmed Planned orders, Planned orders assigned with Production versions, Purchase orders, Schedule lines, Firmed Purchase Requisitions, Receipt Reservations,X

Consider all the Most Certain receipt elements along with the plant stockExample - Production order, Shipping Notifications, QM Inspection LotsX

Example for Days Supply and Receipt Days Supply:Days Supply for Material M1 on Today = 3 days(Receipts are not considered)

DayRequirementsAvailable QtyStock Balance Left after covering Requirements

Today-20Current Stock = 100100 20 = 80

2ndDay-30Stock Available = 8080 30 = 50

3rdDay-50Stock Available =5050 50 = 0(Stock = 0)

4thDay-52

5thDay-40

6thDay-20

Days Supply on Today = Coverages Considering without the receipts = 3 Days Exactly

Receipts Days Supply for Material M1 on Today = A little more than 4 days(Receipts are also considered This example can be for Receipt Days supply 1 or 2)

DayReqmtsExpected ReceiptsAvailable StockStock Balance Left after covering Requirements

Today-20Firmed Planned order = 10Production order = 5Total Receipts on day=15Available = 100(100 + 15) -20 = 95

2ndDay-30Total Receipts on day=0Available = 95(95 + 0 ) 30 = 65

3rdDay-50Production order = 25Total Receipts on day=25Available = 65(65 + 25) 50 = 40

4thDay-47Planned order = 8Production order = 5Total Receipts on day=13Available = 40(40 + 13) 47 = 6

5thDay-40Planned order = 5Total Receipts on day=0Available =6(1 + 5) 40 =- 34Shortage

6thDay-20

Receipt Days Supply on Today = Coverages Considering the receipts= 5 1 + (6/40) = 4 + 0.15 =4.15 Days