Block storage location for MRP

Published on October 31, 2008 in PP. 0 Comments Tags: MRP, PP.

Blocking storage locations from MRP can be useful e.g. if you wish to exclude inventory in
showrooms from procurement decisions.

To block storage locations from MRP you can go to to IMG > Production >Material Requirement
Planning > Planning > Define Storage Location MRP per Plant. In the plant/storage location
overview set indicator ’1′ behind the location you wish to exclude from MRP.

This is a very simple configuration. However if you overlook this you may run the risk of
implementing MRP areas for the same purpose, but with a lot more effort and impact.

Exclude storage location from ATP

Published on December 4, 2008 in SD. 2 Comments Tags: ATP, SD.

In some cases it may be necessary to exclude a storage location from ATP (and MRP). This is
often the case at companies who e.g. keep inventory on materials that are stored in a well-sized
showroom. How you can block a storage location for MRP, I explained in an earlier post. This
will give you some pointers on blocking for Available-to-Promise.

Unfortunately there is not a simple switch per storage location to block for ATP, as there is for
blocking for MRP. So we are looking for alternatives:

1. Often the stock can be put on ‘blocked’ or ‘restricted use’ stock status. Usually this stock
is excluded from the scope of check for ATP on Sales Orders and Deliveries. Otherwise
this can be adjusted.

OVZ9 - Scope of Check

 2. If the previous REAAAALLY doesn’t work for you you can look into
EXIT_SAPLV02V_002 for Storage Location Determination. This exit is designed for
deliveries and is not easy to implement. Just look at note 415716. Personally I like to
stay away from implementing exits that come with pages of notes and disclaimers. But
don’t let me hold you back.

If your stock is so special that it shouldn’t be included in ATP, the first option should oftentimes
do it for you. It requires that procedure for receipt of goods in this storage location should be
slightly adjusted by posting it to special stock instead.

Replenishment to Maximum Stock Level

Published on November 11, 2008 in PP. 3 Comments Tags: MRP, PP.

Replenishment to maximum stock level

It is not uncommon that the use of the field Maximum Stock Level in the MRP1 tab in the
Material Master leads to misinterpretations. This field can only be properly used together with
lot-sizing procedure HB: Replenishment up to maximum stock level. This is commonly used for
tanker planning where storage is limited to the tank capacity. This lot sizing can be used in
conjunction with re-order point planning or MRP. It cannot be properly used independent of lot
sizing HB as a procurement ceiling (see my suggestion at the end of this post for a way to
address this).

Planning Type PD: MRP

The system will create a requisition for the size of the remaining capacity of the tank OR if the
requirement in a period exceeds the remaining tank capacity it will take the real requirement.
MRP gives priority to giving the planner a balanced planning overview. It is up to the planner
how to handle the storage shortage.

Planning Type VB/VM: Re-order point excl external requirements

Lot size = max stock level – current stock – existing fixed receipts

Planning Type V1/V2: Re-order point incl external requirements

Slightly more complex, this is a two step approach:

1) Lot size = max stock level – current stock – existing fixed receipts

2) Lot size = Re-order point – Total requirements in lead time – current stock – existing fixed
receipts

Whichever of the two is the highest will be the quantity proposed.

Order ceiling

Some customers prefer to stick to exact lot sizing and want to use the maximum stock level as a
ceiling. SAP does not support this. There is a work-around for this by using the coverage profile.
Whenever a requisition exceeds the max stock level in the coverage profile MRP will issue a
warning (25). This can be used to avoid exceeding the tank capacity if you align this indicator
with the tank capacity. Since the coverage profile is based on historical average demand, this
method can only be used if your average demand is stable.