What is SAPMRP-MaterialRequirement Planning OverviewMaterial Requirement Planning (SAP MRP) is a toolwhich helps in planning the requirement quantities and schedules of a given material.Itnot only ensuresavailability of the material forwhich MRP is carried out, but also ensuresavailability of the components (of all the BOM levels) below in the BOM structure. Apart from assuring material availability,MRP also carries out scheduling of the procurement proposals using the lead times for the materials/components. When the material is an internally manufactured material, it will use the lead times or operation lead times from the routings/recipes and when the material is an external procured material, it will fetch the lead times or delivery times for the material defined at an appropriate place in the tool/system. Scheduling of the procurement proposals not only derives the capacity loading of the orders on the workcenter but it also calculates the delivery dates of the components that would be requried for manufacturing (delivery date = start date of processing).The output of MRP proposes procurement proposals (planned order or purchase requests) so as togaurantee material availability and at the same time schedule the procurement proposals using delivery lead times for the materials/components. Material requirement Planning can be run forpurchased materials orfinished saleable materials or subassemblies (semi-finished) used in production.While the Material Requirement Planning in SAP ECC (SAP MRP), derives a plan for the materials and helps the planners and supervisors to purchase, produce or sell. It offers all the possible planning methods available in the market like the reorder point planning for the consumption based planned materials, lot for lot MRP planning for the demand based planning materials, forecast based planning methods which uses the past historical figures to extrapolate the future requirements (again a consumption based planning material).

Bill of Material (BOM)DefinitionList of all materials required in a process together with the quantities required.UseThe BOM is part of the master data of production planning and is also used in discrete manufacturing. However, note that the following features are specific to process industries:In general, the BOM is created and edited directly from within the master recipe for which it is required.By creating a production version, you can uniquely combine a master recipe with an alternative BOM. The material components of the alternative BOM can then be assigned to the operations or phases of the master recipe and be taken into account in material quantity calculation.