Introduction to Gross Requirements Planning
Gross Requirements Planning (GRP) in SAP refers to the total quantity of materials required to meet production and demand before considering available inventory. It forms the foundation of Material Requirements Planning (MRP) by calculating the raw material, component, or finished product demand without adjusting for stock on hand or scheduled receipts.
Gross requirements planning ensures accurate demand forecasting, optimized procurement, and efficient production planning.
Key Concepts & Business Impact
Core Components
- Gross Requirements: Total material demand based on planned orders, sales orders, and dependent requirements.
- Net Requirements Calculation: Adjusts gross requirements by considering stock, receipts, and safety stock.
- Material Requirements Planning (MRP): SAP process that converts gross requirements into planned procurement or production orders.
Business Value
- Prevents Material Shortages: Ensures production plans account for all required materials.
- Optimizes Procurement: Helps align purchasing with demand forecasts.
- Improves Supply Chain Efficiency: Supports just-in-time (JIT) and lean manufacturing strategies.
Gross Requirements Planning Calculation in SAP
Formula: Net Requirements=Gross Requirements−Available Stock− Scheduled Receipts
Example Calculation
| Component | Quantity (Units) |
|---|---|
| Gross Requirements | 500 |
| Available Stock | 100 |
| Scheduled Receipts | 200 |
| Net Requirements | 200 |
Configuration & Customization in SAP
Define MRP Parameters
- Transaction Code:
OPPQ - Path:
SPRO → Production → MRP → Define MRP Types - Ensure MRP type PD (Material Requirement Planning) is active for materials.
Maintain Material Master for MRP
- Transaction Code:
MM02(Change Material) - Navigate to MRP 1 & MRP 2 Views:
- Lot-sizing procedure: Determines procurement batch size.
- Reorder point planning: Defines minimum stock levels.
Run MRP to Calculate Gross Requirements
- Transaction Code:
MD01(MRP Run for All Materials) - Transaction Code:
MD02(MRP Run for Single Material)
Integration with SAP Processes
Production Planning (PP)
- Gross requirements are generated from planned production orders.
- Supports Material Staging & Bill of Materials (BOM) Explosion.
Procurement (MM)
- Converts MRP-generated purchase requisitions into purchase orders.
- Aligns vendor deliveries with material demand forecasts.
Warehouse & Inventory Management (WM/IM)
- Helps optimize warehouse stock levels and prevent excess inventory.
- Supports real-time stock tracking for manufacturing operations.
Common Issues & Troubleshooting
MRP Not Generating Gross Requirements
- Solution: Check MRP type settings in
MM02(Material Master).
Incorrect Net Requirements Calculation
- Solution: Verify available stock levels in
MB52(Stock Overview).
Planned Orders Not Converting to Procurement Orders
- Solution: Ensure proper lot-sizing and procurement type settings in
MD04.
Best Practices
- Use Forecast-Based Planning: Implement
MRP Type VVfor long-term demand planning. - Automate MRP Runs: Schedule background jobs using
MD01to ensure continuous planning. - Optimize Lot-Sizing: Select efficient lot-sizing strategies to minimize procurement costs.
Key Transaction Codes & Tables
| Purpose | Transaction Code | Key Tables |
|---|---|---|
| Define MRP Types | OPPQ | T438X (MRP Types) |
| Maintain Material Master (MRP) | MM02 | MARC (Plant-Specific Material Data) |
| Execute MRP Run | MD01 / MD02 | MDKP (MRP Run Control) |
| Stock Overview | MB52 | MARD (Storage Location Data) |
| View Planned Orders | MD04 | PLAF (Planned Orders) |
Conclusion
Gross Requirements Planning in SAP ensures accurate demand calculation, prevents material shortages, and optimizes production efficiency. By properly configuring MRP parameters, material masters, and procurement processes, businesses can achieve cost-effective supply chain management and seamless production execution.
Pro Tip: Use SAP S/4HANA MRP Live for real-time demand planning and dynamic inventory adjustments.