Browse Production Planning related topics under this category

Concept of Bill of Material

Bill of material form an important component of the Production Planning SAP PP module. In many SAP interviews candidates are asked to explain the concept of Bill of material.

 Q). What is a Bill of Material BOM in the SAP Production Planning PP module? Read more

PP Transactional Flow

Step 1: Material Master
Logistics > Production > Master Data > Material Master > Material > Create General > Immediately MM01

Step 2: BOM creation
Logistics > Production > Master Data > Bills of Material > Bills of Material > Material BOM > Create CS01

Step 3: Work Center creation
Logistics > Production > Master Data > Work Center > ( New Screen ) Work Center > Create CR01 Read more

Materials Requirement Planning in SAP

The main function of material requirements planning is to guarantee material availability, that is, it is used to procure or produce the requirement quantities on time both for internal purposes and for sales and distribution. This process involves the monitoring of stocks and, in particular, the automatic creation of procurement proposals for purchasing and production.

In doing so, MRP tries to strike the best balance possible between

  • optimizing the service level and
  • minimizing costs and capital lockup. Read more