Article 40 - MRP Types

Article 40 - MRP Types


Article 40: What are the different MRP types and procurement keys?

What are MRP Types?

MRP Types are configuration codes that determine how the MRP run behaves for each material. They control the planning logic, procurement method, and calculation parameters.

What are the main MRP Types?

Standard MRP Types

MRP Type PD (Planning with Final Assembly):

  • When to use: For make-to-order production environments
  • Planning approach: Plans components based on final assembly requirements
  • Benefit: Reduces inventory of finished goods while ensuring component availability

MRP Type ND (No Planning):

  • When to use: For materials that don't require automatic planning
  • Planning approach: No MRP proposals generated
  • Usage: Service materials, one-time purchases, discontinued items

MRP Type VV (Consumption-based Planning):

  • When to use: For C-items with simple replenishment needs
  • Planning approach: Based on historical consumption patterns
  • Benefit: Simple reorder point logic without complex MRP calculation

Advanced MRP Types

What are Procurement Keys?

Procurement Keys determine how and where materials should be procured when MRP identifies a shortage.

Key Procurement Options:

Key

Name

What It Does

When to Use

F

External

Creates purchase requisitions

Buy from vendors

E

In-house

Creates planned orders for production

Manufacture internally

X

Both

System chooses based on lot size

Flexible sourcing


How does the system choose between E and X?

Decision factors:

  • Lot size requirements - minimum quantities needed
  • Lead time comparison - internal vs external procurement time
  • Cost considerations - make vs buy economics
  • Capacity availability - internal production capacity

What is Special Procurement?

Special Procurement Keys handle unique scenarios:

Key 50 - Subcontracting:

  • Purpose: Send materials to vendor for processing
  • MRP behavior: Plans raw materials and subcontract service
  • Usage: When vendor processes your materials

Key 30 - Production in Another Plant:

  • Purpose: Manufacture in different plant within company
  • MRP behavior: Creates planned order in producing plant
  • Usage: Load balancing across plants

Key 10 - External Service:

  • Purpose: Purchase services rather than materials
  • MRP behavior: Creates purchase requisition for services
  • Usage: Maintenance, consulting, temporary labor

How to choose the right MRP Type?

Ask these questions:

  1. Is this a standard material requiring regular planning? (Use PD)
  2. Should planning be automated or manual? (ND for manual)
  3. Is demand predictable or consumption-based? (VV for consumption)
  4. What's the procurement strategy - make, buy, or flexible? (Choose appropriate key)



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