In MRP Procedure, you define MRP type in material master. MRP type determines how the material is planned. MRP is performed based on the present and future sales figures, and planned and exact REQUIREMENT quantities calculate net requirement calculations. 

Following MRP types are available:

• Manual reorder point planning
• Automatic reorder point planning
• Forecast-based planning
• Material requirements planning with forecasts for unplanned consumption
• Master Production Scheduling (MPS)

Consumption-based planning is based on historical consumption values and either uses forecasting or statistical procedures to DETERMINE future requirements or just triggers procurement, if the material stock gets low.

For MRP material, normally HIGH value A parts are considered, and the quantity and the desired delivery are the main interest areas. You use Consumption based planning for less critical low value parts B and C.

Manual reorder point planning is the most common type of consumption based planning and involves MINIMAL administrative work to perform this planning. In this planning, the system sets a manually entered reorder point and at the time of planning run it only checks WHETHER the stock has fallen below this reorder point. When the stock is less than this manually entered reorder point, the system triggers procurement to be performed for a fixed lot size.

The Following MRP Procedures are supported in consumption based planning −

• Reorder Point Planning
• Forecast-Based Planning
• Time-Phased Planning

In MRP Procedure, you define MRP type in material master. MRP type determines how the material is planned. MRP is performed based on the present and future sales figures, and planned and exact requirement quantities calculate net requirement calculations. 

Following MRP types are available:

Consumption-based planning is based on historical consumption values and either uses forecasting or statistical procedures to determine future requirements or just triggers procurement, if the material stock gets low.

For MRP material, normally high value A parts are considered, and the quantity and the desired delivery are the main interest areas. You use Consumption based planning for less critical low value parts B and C.

Manual reorder point planning is the most common type of consumption based planning and involves minimal administrative work to perform this planning. In this planning, the system sets a manually entered reorder point and at the time of planning run it only checks whether the stock has fallen below this reorder point. When the stock is less than this manually entered reorder point, the system triggers procurement to be performed for a fixed lot size.

The Following MRP Procedures are supported in consumption based planning −