SAP PP MRP Planning Parameters

What Are MRP Planning Parameters?

MRP Planning Parameters are the heart of SAP PP planning. They dictate how materials are planned, procured, scheduled, and stocked. When these parameters are correctly set, MRP runs produce accurate, reliable, and efficient results. When they are not maintained properly, production issues and shortages quickly appear.

Correct MRP parameters = smooth production + accurate planning.

In simple terms: MRP parameters act like instructions that tell SAP how to manage the material throughout the planning process.

Why Are MRP Planning Parameters Important?

Without proper MRP settings, the system may:

  • Plan too much stock
  • Produce at the wrong time
  • Overload capacity
  • Miss material shortages
  • Create unnecessary purchase orders

Good MRP parameters ensure smooth, accurate, and realistic planning.

Major MRP Planning Parameters in SAP PP

  • MRP Type - defines how a material is planned. MRP type decides whether SAP should plan the material via MRP, reorder point, or not plan at all.
  • MRP Controller - person responsible for the material’s planning (e.g., Planner ID like 001, 002).
  • Lot Size - lot size decides how much quantity to produce or purchase at a time.
  • Procurement Type - defines how the material is obtained.
  • Special Procurement Type - Overrides procurement type for special cases like: subcontracting, stock transfer from another plant and production in another location.
  • Scheduling Parameters - In-house Production Time (Time required to produce the material internally), Planned Delivery Time (Time to procure material from vendor) and GR/GI Processing Time (Goods receipt or issue buffer days).
  • Safety Stock & Coverage Profile - Safety Stock (Extra stock to avoid shortages) and Coverage Profile (Automatically calculates safety stock based on past consumption).
  • MRP Group - Controls planning behavior for a group of materials: which MRP type to use, how to calculate shortage and how to set planning horizons.
  • Strategy Group (Planning Strategy) - Defines planning logic such as: MTS (Make to Stock), planning with final assembly and MTO (Make to Order).
  • Consumption Mode & Consumption Period - Defines how PIRs are reduced or adjusted by sales orders.
  • Availability Check - Determines how SAP should check stock before confirming orders.
  • BOM Explosion & Production Version - BOM Explosion (Controls how BOM is used during MRP) and Production Version (Links BOM + Routing → required to plan production correctly).