Day 8 — Material Requirement Planning (MRP)

What is MRP? Explain its purpose in SAP PP.

1. MRP stands for Material Requirement Planning. 2. It calculates the quantity of materials required for production. 3. It checks current stock and future demand. 4. It creates Procurement Proposals when stock is insufficient. 5. It generates Planned Orders for in-house production. 6. It creates Purchase Requisitions for externally procured materials. 7. It helps avoid material shortages. 8. It ensures smooth production planning.

A company receives an order for 1,000 fans. 1. MRP checks motor stock. 2. Blade stock is available. 3. Motor stock is insufficient. 4. Purchase Requisition is created for motors. 5. Planned Order is created for fan assembly. 6. Materials are received. 7. Production starts. 8. Finished fans are stored in inventory.

1. What is MRP? 2. What documents are created after an MRP run? 3. Why is MRP important in SAP PP?