SAP B1 MRP Concept and process planning:

The Material Requirements Planning (MRP) function in SAP Business One lets you plan material requirements for complex manufacturing and procurement processes. To create and run MRP scenarios, you can use the MRP wizard. The wizard generates recommendations such as production orders, purchase orders, and inventory.

In the example shown, you can see an illustration of the recommendations given by MRP.
At the top, we see the situation before MRP is run.
- The initial stock quantity is represented in gold. Initially there were 20 pieces in stock.
- A purchase order exists for 30 pieces. We expect those receipts shortly in the future based on the lead times for the items.
- We have requirements for 40 pieces from existing sales orders.
- We have a sales forecast for 50 additional pieces in the near future and later on we expect demand for additional 30 pieces.
When we run MRP, we receive recommendations for three purchase orders to fulfill the requirements.
MRP considered the initial stock, planned supply and existing and forecasted demand.

Before running MRP, you need to define planning data. The main planning data consists of definitions in item master data records. In addition, there is also an option to define a forecast for anticipated demand of the items.

Once the planning data is set up, you can run the MRP wizard on demand.

The results of the MRP run are recommendations for creating documents to produce, purchase or transfer the needed items.

The final step in the MRP process is to use the recommendations to create the needed supply documents (such as production orders, inventory transfer requests or purchase orders) to meet the demand. These documents can be automatically generated via the Order Recommendation window.

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