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SCM445 Name Shashank Mallepula

SAP ASSIGNMENT# 3

Assigned # 039

Material Requirements Planning Exercise

Learning Objective: The purpose of this exercise is to demonstrate the materials requirement planning (MRP)

functionality in the SAP R/3 system. This assignment will utilize the data that you created in assignment #2. As a

first step, a small test problem will be solved manually to determine planned order releases by carrying out MRPcalculations as learned in class and similar to homework assignments in chapter 6. The problem is solved in a

traditional way with weekly time buckets. This problem is then implemented in the SAP R/3 software. Results

obtained in SAP R/3 are compared with those obtained by hand calculations.

The main steps in this exercise are outlined below.

1. Solve the MRP calculations for materials X100-01-xxxx; X200-01-xxxx; and X300-03-xxxx.

2. Modify the MRP parameters on 5 material masters3. Create planned independent requirements for the finished product.

4. View MRP stock/Reqmts list for the finished goods product5. Adjust the stock quantity for material X300-03-xxxx6. Run Master Production Scheduling and MRP for the finished product. (Multi-level explosion)7. View MRP Stock/Reqmts list

8. Verify the MRP results with those obtained with hand calculations.

REMEMBER: Everywhere that xxxx is referenced, you should be using your personal FOUR digit SAP number

assigned for course SCM445

STEP 1

Solve the Test Problem

Calculate Planned Order Releases formaterials X100-01-xxxx; X200-01-xxxx; and X300-03-xxxx . Relevantdata on independent requirements (forecast), BOM, and material master data are given below.

We will run SAP/R3 MRP processing for the entire product structure (10 materials), but your manual calculations

will only need to be completed for 3 of the materials as specified above.

Independent requirements (demand) for product X100-01-xxxx are given below:

Period Independent Requirements

Week 47/2013 100

Week 48/2013 150

Week 49/2013 120Week 50/2013 180

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Some Relevant Material Master Data

Material Lot Size Lead time Procurement type Remarks

X100-01-xxxx LFL 1 week

(5 days)

In-house

production

Finished

Product

X200-01-xxxx LFL 1 week

(5 days)

In-house

production

Semi-finished Product

X300-03-xxxx Fixed lot size of

200

1 week(5 days)

In-houseproduction

Semi-finished Product

Complete the following table:

MRP CALCULATIONS

Week No. 44 45 46 47 48 49 50 51Gross Requirements for X100-

01-xxxx

100 150 120 180

Scheduled receipts 0 0 0 0 0 0 0 0

ProjectedAvailableBalance(initial PAB=0)

Planned Order Releases

Gross Requirements for X200-

01-xxxx


ProjectedAvailableBalance

(initial PAB=0)


Gross Requirements for X300-

03-xxxx


ProjectedAvailableBalance

(initial PAB=110)


X100-01-xxxx

Tuaca Light

X200-01-xxxx

Styrene BackAssembly

X200-02-xxxx

Formed Face

X200-03-xxxx

Three prongcord

X200-04-xxxx

Light Bulb

X300-02-xxxx

Metal HeatShield

X300-04-xxxx

LampholderAssembly

X300-03-xxxx

Formed Back

X400-01-xxxx

White styrenesheet

X300-01-xxxx

Clear screenedface

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STEP 2

Modify Material Master MRP Data for the following five materials

1. Execute SAP transaction code MM02

You are now going to eliminate the safety stock that currently exists for your finished goods material and you willalso view the number of days that the MRP Planning fence is set to.

Enter your material number X100-01-xxxx

Click the green check mark

Select views MRP1 and MRP2


Enter plant: 3000

Enter location: 0001


You are now in the MRP1 view

Q.1 What is the value ofPlanning Time Fence? 10

Click the MRP2 view (tab)

ChangeIn-House Production time from 1 day to 5 days.

Save changes (click on )

A message in the bottom left will confirm the changes have been made

2. Execute SAP transaction code MM02 (you are already there just enter new material)

For the following material, you are going to change the lot size from lot for lot to fixed; set the fixed order

quantity to 200; and change the lead time to 5 (days).



Select views MRP1 and MRP2 Click the green check mark

Enter plant: 3000




ChangeLot Size to FX(fixed order quantity instead of LFL)

Change Fixed Lot Size to 200

Click the MRP2 view (tab)

ChangeIn-house production time to 5 (five) days




For the following raw material, you are going to set the maximum order quantity to 70.



Select view MRP1


Enter plant: 3000

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ChangeMaximum Lot Size to 70




For the following raw material, you are going to set the minimum order quantity to 250.



Select view MRP1


Enter plant: 3000



You are now in the MRP1 view ChangeMinimum Lot Size to 250




For the following material, you are going to change the lead time to 5 (days).



Select view MRP2


Enter plant: 3000




ChangeIn-house production time to 5 (five) days


STEP 3

Execute SAP Transaction code MD61.

This transaction will allow you to create planned independent requirements for your finished product.

Enter material X100-01-xxxx

Change planning period to W (week)

Set FROMdate to 11/14/2013

Set TO date to 12/31/2013

Click green check mark

You are now in the Planning Table view

In W47/2013 enter quantity: 100

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A message in bottom left will confirm the schedule has been created

STEP 4

At this point, you have created material masters, BOM, and entered independent demands for your finished goods

material. You will now run the MRP Stock /Requirements list for the finished goods material.

Run SAP transaction MD04.

Enter material: X100-01-xxxx

Enter plant: 3000

Click green check mark

Q.2 What is the projected available balance (available qty) at the end of day 12/9/2013? 550-

Think about this PAB quantity we created the independent requirements, but we did not yet run MRP to generate

orders to support the requirements. If we do not run MRP and create replenishments, on 12/9/2013 we will have alarge negative balance which will represent the Tuaca Lights that we still owe our customers. However, this will not

be the case because we are going to run MRP and build the Tuaca Lights to ship to our customers.

STEP 5Create initial inventory balance for material X300-03-xxxx

Run transaction MB1C

Field Data

Document Date Todays date

Posting Date Todays dateMovement type 561

Plant 3000

Storage Location 0001

From the menu on top of screen select:

Movement type Receipt Init.stck entry (own) To unrestricted

You will get multiple warning messages (lower left) continue to hit enter (green check) until the next screen

appears which will allow you to enter material and quantity:

Now enterMaterial Quantity

X300-03-xxxx 110

Hit green check mark (enter) wait for processing!

SAVE.

STEP 6

You will now run a multi-level MRP explosion that will start with your finished goods material (X100-01-xxxx) and

will continue through the entire product structure.

Run SAP transaction MD41. (MPS/MRP multi-level explosion)

Enter material X100-01-xxxx

Enter plant 3000

MRP control parameters (should be set OK but verify)

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o Processing keyNETCH, Create pur. Req. 3, Schedule lines 3, Create MRP list 1, Planning mode 1,

Scheduling 1

SelectAlso plan unchanged components

Click green check mark (enter)

Click green check mark again (confirming values)

You will get the results of the MRP explosion do not worry about this screen, simply exit the transaction

and go back to the Easy Menu.

STEP 7

1) Run SAP transaction MD04 for material X100-01-xxxx and plant 3000.

Review this screen very carefully!! Note all field names, including the Available Qty (projected available quantity)

field. Note the first line with todays date that has Stock is the current sock on-hand quantity. Each row will

show Independent requirements (the need) and the planned orders that were generated to satisfy them. Note the start

date for the planned orders is backed off from the order due date based on the material lead time.

For the planned order that is due on 11/25/2013:

Q.3. What is the planned order start date? 11/21/2013 (hint: hit the magnifying glass icon to the left of the order)

Q.4 For the order due on 12/02/2013, what is the planned order quantity? 120

Q.5 What is the available quantity at the end of the day on 12/02/2013? 0 (look CLOSELY at the MD04 screen to

answer this question think about it)


Again, review this screen very carefully and understand the impact of setting the maximum lot size to 70.

Q.6 How many planned orders were created that are due on 11/08/2013? (I am looking for the NUMBER of

orders, NOT the total order quantity) 2

Be sure that you understand why multiple orders were created on 11/08/2013!!!


Again, review this screen very carefully and understand the impact of setting the minimum lot size to 250.

Q.7 What is the Available Qty at the end of the day on 11/06/2013? 100

STEP 8

One at a time, run SAP transaction MD04 for materials X100-01-xxxx, X200-01-xxxx, X300-03-xxxx and X00-01-

xxxx. Now verify the results of the MRP planning with your manual calculations that you performed in step 1. The

planned order releases and the available quantity (PAB) should match up EXACTLY.

In addition to comparing these four materials with your manual calculations, you should also compare your MD04

results with one or two of your classmates. (You can optionally compare your answers with materials X100-01-

X01, X200-01-X01, X300-03-X01 and X400-01-X01).

When viewing the MD04 transaction for each of these materials, if something is not correct, you will need to findthe problem. You should review lead times and ordering parameters. When you find the problem, change the

material (fix the parameter) and then run MRP again.

In addition to your answer sheet quiz, my grading will also consist of my review of your material (MD04)

requirements / replenishments for all materials.

GREAT WORK!!!!

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