Consumption Based Planning (CBP): & Material Requirement Planning (MRP):

CBP & MRP are carried out at plant level or MRP area level.
MRP
Its done mainly on current date to future. Its
planned based on the sales & operation
planning SOP
Its used for planning, finished product &
important assemblies

CBP
Its need to be plan the future demand of the product. It
can be done based on the historical demand of the
material
Its issued for planning B & C class where as no in
house-production (less valuable items)

In MRP net requirement are triggered based

on dependent & independent requirement

In CBP net requirement are triggered based on

historical data.

CBP or MRP are 3 types ie;

Reorder point planning (forward scheduling)
Forecast based planning (here its decided based on forecasting program) (backward schd.)
Time-phased planning (here the date of the planned requirement should match with the know date)
Reorder point: It can be done manual & automatic. Here the procurement starts when the existing stock &
receipts falls below the reorder point. To define reorder point the values are safety stock, replenishment lead
time, average consumption. Important terms in reorder point are safety stock & reorder point.
Forecasting: Its a process used in CBP which depends on prediction of future requirements calculated on
the basis of forecast. Different models are (constant model, trend model, seasonal model, and seasonal
trend model)
Time phased planning: here the materials are planned to be delivered in a particular time interval. It
contains a planning file that contains an MRP date to plan the delivery of material
MRP types:
VB manual reorder point planning
ND no planning
VM automatic reorder point planning
VV forecast based planning
Lot-Size are 3 types ie;
Static (Lot for Lot EX, Fixed Lot FX, Replenished up to Max.)
Periodic (daily, weekly, monthly, in acct. period)
Optimum (Graff reorder procedure, dynamic lot size, least unit cost, periodic cost)
Lot-size is a key which determines the lot-size in procedure the system should-use to calculate the quantities
to be produced or procured.
Planning File: File that contains a list of all the materials for which a change relevant to requirements
planning has occurred and that are therefore automatically flagged for planning.
Firming type in MRP: The firming type determines how procurement proposals are to be firmed and
scheduled within the planning time fence during the planning run.
Planning time fence: You can protect procurement proposals from any automatic changes to master
schedule items in the near future by using the planning time fence.
MRP run types ie;
NETCH = net change planning (material which have undergone change in relevant to MRP will be
included in planning file)
NETPL = net change planning in planning horizon (material which have undergone change with in
planning horizon will be included in planning file)
NEUPL = regenerative planning (it includes all the material in planning file)
Evaluation:
Stock requirement list is a dynamic report which shows the current stock, current receipt & current
requirement
MRP list shows the result of last planning went. Its only for statistical purpose

MRP profile: Its a key which simplifies the maintenance & administration of MRP data in MMR. (It
determines which field to be entered, which values to be entered, which values of this can be overwritten)
MRP controller: Its a person or group of persons who are responsible for planning material availability &
they are defined at plant level
MRP area: It can be a SL or group of SL or a subcontractor.
Customization in MRP/CBP:
SPRO ref IMG MM CBP planning activate mrp/cbp at plant level (check the box for the
plant to be MRP/CBP) T: /nOMD4
SPRO ref IMG MM CBP master data check MRP types (its a 2 char ie; CBP type, it
determines which MRP procedure to be used)
SPRO ref IMG MM CBP master data MRP controller (its a 3 char, its a person or group of
persons who are responsible for planning the material availability, they are defined at plant level, it
can assign to multiple plants)
SPRO ref IMG MM CBP planning lot size calculation define lot size procedure T:
/nOMI4
Steps in MRP/ CBP:
Create a MMR T: /nMM01, with MRP field mandatory material type = operating supplies (MRP -1 =
MRP type & lot size) to change a lot-size go in T: /nMM02
T: /nMD04 logistic MM MRP evaluation SRL (enter material & plant)
T: /nMD21 (display planning file)
T: /nMD03 (single item & single level, processing key (MRP run type), create PR, check the box
display result)
T: /nMD21 (indicator update)
T: /nMD04
MRP req. date = release date + order processing date + delivery lead time + GR processing time
Transaction code MRP:
MD01 used in total planning online
MD03 single item single level
MD04 stock requirement list (for collective display MD07) (for MRP print MDLD)
MD05 MRP requirement list (for collective display MD06)
Automatic generation of schedule lines:
1. In the source list T: ME01 (enter the S/A no in the O/L column & enter (2) in the MRP column)
2. SPRO ref IMG material management CBP plant parameter carry out overall maintenance
of plant parameter (click on maintain enter plant, click on external procurement creation of
schedule lines set as 3
3. In MMR MRP 2 view procurement type F