The Purpose of this document is to explain the significance of “Storage Location MRP”. This feature gives you flexibility to:

1) Exclude storage location stock from MRP

2) Plan storage location stock separately

Material requirement planning generally runs at plant level. When you run it for a material, system sums-up total stock from all storage locations and considers it as “available stock” to fullfill the demand elements.

The control of “storage location MRP” on Material Master is maintained in MRP 4 view:

Pic 1.png 
 
Let’s consider a raw material RM0001 maintained in plant FP01. This material is extended to storage locations SL01 and SL02. I have kept both the Sloc as non WM managed in order to simplify the example.

RM0001 has following stocks in 2 storage locations

SL01 – 20

SL02 – 50

FP01 = 70 (Plant Stock = 20 + 50)

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The stock requirement list shows:

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Case 1: When the indicator is blank ” “

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This is the default case where stock of material at storage location is considered for MRP run (Plant level). This is the default case in which total stock (70) of all storage locations is used together in MRP at plant level.

Case 2: With indicator “1

The storage location stock gets excluded from MRP

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Example: let’s set this indicator “1” for sloc SL01 (with 20 quantity)

MRP 4:

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Now if we check MD04 for same stock situation we will see 20 Qty is excluded from total plant stock:
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The important point to note here is that total 70 is still “unrestricted quantity” and available for use but since we have set indicator “1” in SL01, the sloc stock will get EXCLUDED in MRP run. This means that we can still consume 20 qty via goods issue but system ignores it in Planning run (MRP).

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Now if there is demand for this material for 60 quantities

System will only consider 50 for MRP calculation and ignore 20 from SL01 (excluded)

pic 8.png

After MRP:

There is a demand of 60 and out of which 50 is covered by stock in MRP calculation and system finds a deficit of 10 quantities. Even though there is an extra stock of 20 in SL01 but since we have excluded it from MRP run, system generates a purchase requisition of 10 quantities.

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Case 3: with indicator “2”

Storage location stock is planned separately

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Separate storage location MRP is carried out using consumption-based planning. In this case, one must define a reorder level and a replenishment quantity (fixed lot size) at storage location level. In so doing, now if the stock level falls below the reorder level in that perticular the storage location, its considered in MRP run.

MRP 4 settings

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Consider current stock as below:

SL01 as 10 – to be planned separately

SL02 as 50

Sicne the current stock (10) level is below reorder point  (15) and it should be considered in MRP run. As shown in below expample, for requirement of -25 system create a transfer requirement of 25 quantity from SL02 as stock is already present in different storage location under same plant.

After MRP run
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Once the transfer posting is made against the reservation, stock situation looks like this:

Stock from SL02 has moved to SL01

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Apart from transfer posting with movement 311, there are possibilities to use special procurement key for Sloc to be planned separately.  They can be maintained in MRP 4 at storage location details:

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Scenario 1

Material RM0001 in plant FP01 in Sloc SL01 (Storage location to be planned separately with SPK 40 – Stock transfer)

Reorder point –  15

Replenishment Quantity – 25

Current Stock of RM0001 – 10 (below reorder point)

Demand plant – FP01

Supplying plant – FP02

MD04 in Demand Plant FP01

Pic 17.png

After MRP run:

System creates a planned order that can be converted in Purchase requisition then to Stock Transfer order

Pic 18.png

STO gets created with Suppling plant as FP02

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After Goods Receipt, the stock gets updated

Pic 21.png

Default Storage location MRP setting in SPRO

You can also set default setting of Storage location MRP customizing under below path:

Production > Basic Data > Material Requirement Planning > Planning > Define Storage Location MRP per Plant (OMIR)

SL.PNG

If you set this indicator in custominzing then system will propose same settings at the time of creating new material master record. 

Incase materials are already extended to a perticular storage location and you set OMIR settings later, then system will not set these settings automatically in MRP4 view. One has to set them manually in material master record.

Situations where such Indicator is useful:

1. When you want to have some quantity of material separate for specific purpose (only for manual goods issue)

2. When you DO NOTwant to have a particular material considered for net requirement planning.

3. When stores / warehouse is geographically too far from the production location that is planned with the storage location MRP

4. When stock of a storage location is only available for service and not for production

etc…

There could be multiple other cases where Storage Location MRP functionality can be used instead of setting up complex scenarios.

* Request all readers to please suggest other possible cases, if they have come across any, so that this documents can be updated and improved with the course of time.

Thank you for reading.

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15 Comments

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  1. Sagar Mane

    Hi Rohit,

    Really very nice document.The concept of storage location is fully cleared.

    Thanks for sharing this document.

    Regards,

    Sagar Mane

    (0) 
    1. Rohit Singh Post author

      Hi Sagar,

      Thank you for your comments on document and good to know it helped in understanding the concept of SLoc MRP.

      Regards,

      Rohit

      (0) 
  2. Venkatesh Babu

    Hi Rohit,

    Nice document..

    How to get those fields storage location MRP in MRP4 view

    because i have knowledge in OMIR (plant level storage location exclusion from MRP)

    Regards,

    Venkatesh..

    (0) 
    1. Rohit Singh Post author

      Hi Venkatesh,

      Thank you for comments. I have also added significance of OMIR setting in the above document.

      If you want to check Sloc settings in MRP 4 view then you have to give organization levels as plant and storage location (either on MRP 4 view of during MM02/03).

      Check if your mateiral is extended to a perticular storage location in MMSC. If not then you have a extend a material to sloc first (with MM01 or MMSC) and then check settings in MRP 4 view.

      Pls refer SAP note 386491 for more details.

      Regards,

      Rohit

      (0) 
  3. sushant katekar

    Nice Rohit,

    Thanks a lot for such efforts. Please clear my one point that,you said

    4. When stock of a storage location is only available for service and not for production.



    Please elaborate, so that it will clearly understand.



    thanks once again,



    Regards,

    Sushant


    (0) 
    1. Rohit Singh Post author

      Hi Sushant,

      This is the case when you have some materials, not used in regular manufacturing process, and kept separately. This could be the case of spare parts that you do not want to plan using MRP at plant level.

      Regards,

      Rohit

      (0) 
  4. vinoth varadarajan

    Hi Rohit

    Very useful knowledge sharing about SLOC.

    Could you please tell me if there is possibility to create a separate planned order ย instead of creating a transfer requirement. I understand that SAP is always correct in planning the material. But I just want to know if there is a possibility to create a 2 different planned orders with SLOC specific, instead of creating a transfer requirement.

    Br, Vinoth V

    (0) 

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