This video explains the concept of Material Requirements Planning (MRP) Area in SAP Materials Management. The key points discussed in the video are:
- MRP at the Plant Level: The video starts with a discussion on how MRP is done at the plant level. It explains that all the requirements are combined and planned at the plant level, which lacks flexibility as all materials have to be planned in the same way.
- MRP Area-Based Planning: To overcome the limitations of plant-level MRP, the concept of MRP Area-Based Planning is introduced. This allows for the creation of MRP areas for each production line or product, enabling individual planning for each MRP area.
- Advantages of MRP Area-Based Planning: The video discusses the advantages of MRP Area-Based Planning, including the ability to plan for each store location or group of store locations, the flexibility to plan products or manufacturing lines based on business needs, and the ability to eliminate MRP run for specific store locations.
- Types of MRP Areas: The video explains the different types of MRP areas, including plant level MRP area (Type 01), store location level MRP area (Type 02), and subcontracting level MRP area (Type 03). It also explains how these MRP areas can be assigned to the Material Master.
- Assigning MRP Areas to Material Master: The video demonstrates how to assign MRP areas to the Material Master in the MRP 1 view. It explains that different values can be set for different MRP areas, providing more flexibility in planning.
- Caution with MRP Areas: The video cautions that care must be taken when a material is assigned to more than one MRP area to ensure that the material is not planned multiple times, which could lead to increased inventory.
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