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Re:[sap-log-mm] Raw Material Inventory Control linked with PO

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Posted by Tehseen Akbar
on Aug 2 at 8:16 AM 		Mark this reply as helpfulMark as helpful

Hi,

I can understand that the subject requirment can be fullfilled by the implementation of MRP. I would like to explain the business of our company.

We are a in a manufacturing industry and we have two lines of business, packaging and industrial chemicals. MRP is implemented by the SAP consultants in both divisions but we the in-house IT team have only executed MRP in the chemicals division. The management wants us execute MRP in the Packaging division also and as well as also find a solution for the inventory control as I have mentioned.

I am not sure about the execution of MRP in the Packaging division as it is make to order business.
The chemicals division is make to stock business. I would like to write some line on the MRP process that is functional in the chemicals division. The system reads the PIR (Planned independent requirements) and explodes the BOM and generates the planned orders for both FG, and RM. The MRP strategy group that we follow is 10.

Since the Packaging division is make to order business and FG is produced only after getting confirmed order from the customer. In this case I don't think that we can run MRP by reading the forecast data from PIR. However the FG is made out of paper board which we procure it from other country and it takes 90 days to receive the board. Currently the forecasting is made for the paper board based on its consumption, but at the end there is lot of wastage since the exact specification of paper board is now known until customer order is received. Moreover every month there are cases when there is requirement of FG to produce for a certain specification of board but that board is not in stock since it was not forecasted before.

Above all of this the management is also concerned about inventory days reduction.
Firstly I would like to know that best possible way of MRP execution in the Packaging division and secondly I would also like to see how can the MRP takes in control of minimum/maximum stock level in plants.

Appreciate your cooperation and support

Regards
Tehseen



From: sap-log-mm@Groups.ITtoolbox.com
To: tehseenakbar@hotmail.com
Subject: [sap-log-mm] Raw Material Inventory Control linked with PO
Date: Sat, 1 Aug 2009 16:58:52 +0000


Posted by Tehseen Akbar
on Aug 1 at 6:35 PM

Hi All,
Our managment has a new requirement of controlling the raw material inventory and applying minimum and maximum stock levels at plant level. I would like to know that what configurational and master data settings are required to implement such level of control. Basically the control has to be linked with the approval of PO with respect to quantity and value and it should also consider the open purchase orders and goods in transit. Everytime a PO is raised, the system must calculate that the total stock on hand plus goods in transit must not exceed the maimum stock level defined. Does such kind of control has to be linked with MRP as MRP is not yet in place now. Can such kind of control be taken care by MM module only wihtout any user exit.
Regards
Tehseen
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