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Author's profile photo Krishnendu Das

Concept on Consumption and Reduction

Consumption and reduction happens in different level of a proposal. Below example will show the concept of consumption and reduction.


Material : R-F115

Strategy : 10


Sales Order (VA01)=50

Two requirements from IndReq & Order for 100 & 50 pcs will appear on the stock requirement list.

Now we ran MRP.


After MRP Run Planned Order was created only for the PIR meaning NO CONSUMPTION. This is the setting of strategy 10 that Sales Order will not be

considered. As well Sales order (Customer requirement)  will not consume the planned independent requirement.

The Planned order should be converted to Production Order -> Release Material -> Confirm all Operation,  Finished Goods receipt (MIGO).. i.e Replenish the the

stock level to 100.

Thereafter  Issue of Material or Goods Issue to Sales Order which will REDUCE the PIR or STOCK LEVEL


Material : R-F116

Strategy : 40


Lets consider Sales Order (VA01)=50

Sales Order Immediately CONSUME 50 PCS from the PIR


After MRP Run 2 Planned Orders were created separately. Again the reduction will happen once the goods will be issued to Sales order.

Another important thing to notice…

For almost same material (both are FIN product)

PIR with Strategy 10 = MRP Element Data is LSF

PIR with Strategy 40= MRP Element Data is VSF

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      Author's profile photo Kalyana Chakravarthy
      Kalyana Chakravarthy

      Hi Krishnendu,

        Very useful document. Thanks for sharing.



      Author's profile photo Aditya S
      Aditya S

      Hello Krishnendu,

      Thanks for sharing this. Looks like there is some correction to be done. In the Example 2, you have specified there is PIR for 100 Pcs, i can see only Independent Requirement of 50 Pc and Sales Order is for 100 Pcs, but in MD04 we are seeing only 50 Pcs for the Sales Order. Can  you please go through this document and do corrections if any is there.

      Please correct me if i am wrong. Thanks.

      Author's profile photo Krishnendu Das
      Krishnendu Das
      Blog Post Author

      Hi Aditya,

      You are correct. SO will be of 50 nos.



      Author's profile photo Aditya S
      Aditya S

      Hi Krishnendu,

      Thanks for acknowedging and making the correction in the document. Thanks again. 🙂

      Author's profile photo Former Member
      Former Member

      Hi Krishnendu,

      Thank you for such a good document. However, i need a clarification on something. I have created an example as your example number 2 (Planning strategy 40, Independent requirements type = VSF). However, when i run MRP system created 1 planned order for the complete quantity, and not one for the sales order and one for the PIR. Any idea why is that?

      Best regards,

      Dr. Nikos Giannopoulos