Planning Process: The system carries out the following processes in the planning run:

1) The system checks the planning file. During this process, the system checks whether a material is to be planned due to a change relevant to MRP 2) The system calculates net requirements for every material. For this calculation, the system checks whether the requirements are covered by the warehouse stock and dispatched receipts from Purchasing or Production. If the requirements cannot be covered, the system creates a procurement proposal considering lot size procedure 3) The system carries out the scheduling in order to calculate the start and finish dates for the procurement proposals considering times of GR Processing time , in-house production time, Opening period in SMK, planned delivery time. 4) The system determines the type of procurement proposal. Dependent upon the defined setting, planned orders(in-house production), purchase requisitions(external procurement) or delivery schedules(If scheduling agreement exists for a material and if an entry exists in the source list that is relevant to MRP, you can then also instruct the system to create delivery schedules lines in the planning run by maintaining MRP indicator 2 in source list. Also PR can be generated against scheduling agreement when this indicator maintained as 1 in source list) are created by the system for a material. 5) For every procurement proposal of an assembly, the system explodes the BOM and determines the dependent requirements. Dependent requirements, which mean the required quantities, are determined for all the assemblies and components needed to produce the product. Creation Indicator for Purchase Requisitions:You use this creation indicator to control whether purchase requisitions rather than planned orders are to be created for materials that are procured externally. The following options are available: planned orders only purchase requisitions only purchase requisitions within the opening period and planned orders outside of the opening period. When you select this indicator, the system creates purchase requisitions instead of planned orders when it determines an opening date that is before the date of the planning run. The opening period for the planned order represents the number of workdays that are subtracted from the order start date in order to determine the order opening date. This period serves as a time float, which is available for the MRP controller when converting a planned order into a purchase requisition. Note: Schedule lines within the opening period and purchase requisitions outside of the opening period Creation Indicator for MRP Lists: Using this creation indicator, you determine whether the result of the planning run is to be stored in the form of MRP lists. The planning file generation takes place as follows:

1) The system checks the planning file. The planning file contains a list of all materials relevant to the
planning run. Planning file controls planning run and the scope of the planning run. As soon as a material master record is created with MRP data(e.g. reorder point, safety stock etc.) and a valid MRP type, this material is then automatically included in the planning file.

a)System checks whether the material to be planned is in the planning file and whether the NETCH or NETPL indicator has been set.(MD21-DISPLAY,MD20-Manual creation of planning file entry). b)System checks low level code. The low-level code defines the sequence in which the materials are to be planned c) The system checks whether the BOM is to be re-exploded due to existing procurement proposals if x has been marked in planning file. d) The system checks whether procurement proposals existing since the last planning run for a material are to be deleted and recreated. The system does this if an X has been entered in the Reset Order Proposals column Planning Run Type: Regenerative planning (NEUPL): The system plans all the materials that are contained in the planning file. When first time MRP run takes place then it has to be NEUPL. Net change planning (NETCH) or Net change planning in the planning horizon (NETPL): The system only plans materials that have undergone a change relevant to MRP since the last planning run In net change planning(NETCH):Only those materials are planned for which the net change planning indicator in the planning file has been set as a planning file entry. The system sets this indicator for following changes to the material relevant to MRP 1) Changes to stock, if these change the stock/requirements situation of the material 2) Creation of purchase requisitions, purchase orders, planned orders, sales requirements, dependent requirements or reservations 3) Changing to fields that are relevant to the planning run in the material master

Net change planning in the planning horizon (NETPL): In "net change planning in the planning horizon", the system only plans materials that have undergone a change that is relevant to the planning run within the period which you defined as the planning horizon. Planning horizon can be maintained in MRP Plant parameter (OPPQ) or MRP group(OPPR) in days. Also within planning horizon period if any requirement exist then it generates procurement proposal considering NETPL indicator in planning file. If requirement is not in the planning horizon then it will not generate procurement proposal even if NETPL indicator in planning file. On completion of the planning run, the appropriate indicator is automatically deleted in the planning file Planning Mode: The planning mode controls how the system is to deal with procurement proposals (planned orders, purchase requisitions, scheduling agreement lines) from the last planning run Planning Mode 1: Planning mode 1 is if you have only set the planning file entries (net change planning indicator and net change planning horizon indicator) in the planning file for a material. Indicator is set when there is change in requirement & MRP type. Planning Mode 2: Planning mode 2 is if a material has planning file entries(NETCH & NETPL) and the Re-explode BOM indicator is also set in the planning file. Indicator is set when there is change in BOM Planning mode 3: is if a material has planning file entries and the Reset order proposals indicator is also set in the planning file. Indicator is set when there is change in inhouse prodn time ,planned delivery time,SMK,MRP controller.

Important T-codes related MRP & DM 1) Default values for Demand Management in Customization-OMPD 2) Store location exclusion from MRP-OMIR (Customization) 3) Material wise, store location wise MRP exclusion-MMSC (Front end) 4) For multi plant MRP run you can use Scope of planning for that you to define Scope of planning in make customization (OM0E).Assign no. of plants to scope of planning. During MRP run through MD01 it is necessary to select parallel processing check box. By using parallel processing procedures, you can significantly improve the total planning run. For that you have to maintain destination for parallel processing in OMIQ (Customization) 5) MRP activation per Plant-OMDU (then your plant is consider to MRP Run) 6) Set of planning file entry (Plant wise) MDAB (Front end) or OMDO(Customization) 7) Planning file entry consistency check-MDRE The planning run is usually carried out at plant level. In addition, the following are also possible: 1)Storage Location MRP 2)Planning with MRP Areas 3)Multi-Plant/Site Planning

Storage Location MRP: Need for it because

A warehouse is geographically too far away from the production location that is planned with the storage location MRP. The stock of a storage location is only available for service and not for production. If you want storage(single or multiple) location MRP ,it can be possible by defining storage location in MRP area in OMIZ (Customization). But that storage location must be planned separately by adding indicator 2(Storage location stock planned separately) in OMIR. In the planning run, stock that lies in this storage location, and which is planned separately, is not contained in the available stock at plant level.

Planning with MRP Areas : Material requirements planning for each MRP area allows you
to have specific control over the staging and procurement of parts produced in-house and purchased parts for each shop floor and assembly area. If, for example, you define an MRP area for the production storage location of an assembly line, the system plans the material requirements for the assembly line separately from all other requirements. You assign the materials to the MRP areas by creating a segment for the MRP area in the material master record in MRP1 view. There are basically three types of MRP areas: 1) Type 01 for Plant 2) Type 02 for Storage Locations 3) Type 03 for Subcontractors. To maintain, MRP Area you have to make customization OMIZ.

Multi-Plant/Site Planning:
In MRP, multi-plant planning is carried out by means of special procurement keys. You assign the special procurement key to the material in the material master. In Customizing for MRP, you define the special procurement key in the IMG activity Define special procurement type-OMD9. You define the special procurement key at the material level according to plant, procurement type and special procurement. Materials that are included in multi-plant planning must have a material master in all plants concerned