Material Requirement Planning (MRP) is a core functionality in SAP ECC (ERP Central Component) that ensures materials are available for production and products are available for delivery. It plays a critical role in aligning inventory levels with production and procurement demands, thus optimizing supply chain performance.
This article provides an in-depth look at how MRP operates within SAP ECC, its key components, transaction codes, and best practices for effective materials planning.
MRP is a process that calculates material requirements and generates procurement proposals such as purchase requisitions and planned orders based on demand, inventory levels, and lead times.
The primary objective of MRP is to:
Material Master (MM)
Each material must be properly maintained with MRP-relevant data in the Material Master (views: MRP 1–4).
Bill of Materials (BOM)
BOMs define the components required to manufacture a product, enabling MRP to explode requirements down to raw materials.
Work Centers and Routing
Define where and how products are manufactured, including lead times.
Inventory Levels
Current stock levels are factored into the net requirement calculations.
Planned Independent Requirements (PIRs)
Forecast demand entered manually or from a sales forecast system.
SAP ECC supports different MRP procedures:
MRP runs in three modes:
Master Data Preparation
Forecasting and Demand Entry
Run MRP
Review MRP Results
Procurement/Production Execution
MD01: Total Planning for PlantMD02: Single Item Planning (Multi-Level)MD03: Single Item Planning (Single Level)MD04: Display Stock/Requirements ListMD05: MRP ListMD06: Collective Access to MRP ListsMD07: Stock/Requirements List for Multiple MaterialsDepending on the material type and control settings, MRP can generate:
SAP ECC provides robust tools to monitor and evaluate MRP performance:
MD04: Monitor material availability and net requirements.MD05: Compare historical and current MRP runs.MC.9: Analyze stock levels and planning effectiveness.Material Requirement Planning (MRP) in SAP ECC is a powerful tool that ensures the right materials are available at the right time. When set up and maintained correctly, MRP helps reduce inventory costs, improve service levels, and support efficient production planning. As organizations look to transition to SAP S/4HANA, mastering MRP in ECC remains a vital step in achieving a streamlined supply chain.