From the course: Learning SAP MM (Materials Management)

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Material requirements planning overview

Material requirements planning overview - SAP ERP Tutorial

From the course: Learning SAP MM (Materials Management)

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Material requirements planning overview

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- [Instructor] Material Requirements Planning, or MRP, is an extremely important function of SAP. It ensures materials are available to match the needs of an organization. It also keeps supply chains efficient by avoiding too much inventory. MRP relies upon data from both a Production Planning module and the Materials Management module. Let's take a high-level view of how MRP works. There are robust configuration options available, so MRP can meet the demands of very complicated supply chains. For now, let's focus on the high-level concept of Material Requirements Planning. The input that kicks off the MRP process is demand from customers or from planned independent requirements. Demand management details which materials are required, how much of the material is needed, and by when it's needed. With S/4HANA, MRP can now rely on demand-driven replenishment, which focuses on the actual consumption instead of only forecasted demand. This leads to greater accuracy and lower inventory…

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