Introduction: MRP and MPs

MPs:
The main production plan targets finished products or key parts. The main production plan aims to reduce inventory (including in-process) costs and improve the stability of the plan. The master production plan is required in the following cases:
To ensure that there is no shortage of materials, different buffer times and safety stock are input, which inevitably leads to a high inventory level. Therefore, high warehouse costs may occur especially for high-value materials.
The main plan of these materials greatly affects the production process: the plan of the relevant components depends on the Plan results of the finished product or key parts, even if the materials of each product are rarely the same. Frequent plan changes at the final product level will lead to unstable material demand plan operation.
Therefore, it is meaningful to pay special attention to the plans for various finished products and key parts. These materials can be identified in the SAP system as master planning projects and can be scheduled and adjusted using the master production planning tool. The plan for these "main planning projects" results in a reduction in inventory levels while improving delivery performance and making service levels more reliable.

MRP:
The main function of the material demand plan (MRP) is to ensure the availability of the materials. The system calculates the quantity of materials to be purchased or produced at which time to meet the requirements. MRP checks inventory and requirements to generate planned orders or procurement requests for procurement and production.
The purpose of the material demand plan (MRP) is to ensure that there is no shortage and minimize the cost and capital occupation.

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MPS is the main material plan, mainly for the main raw materials or semi-finished products in the production process, such as especially valuable materials, or materials that are difficult to prepare due to strict shelf life requirements.
MRP is a material requirement plan, which is applicable to all materials in the production process.
We can run MPs once before running MRP. If MPs does not meet the requirements, you do not need to run MRP ~

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There are three types of MRP: MPs, MRP, and basic consumption plan.
MPs includes: M0, M1, M2, M3, and M4
MRP includes: PD, P1, P2, P3, p4
Based on the consumption plan, including: re-order point, based on forecast plan, based on time material plan
If the material master data is maintained in MPs types such as M0, M1, M2, M3, and M4, use the md40, md41, md42, MDBs, and other transaction codes to run the data, run the transaction codes such as md02, md03, md43, and mdbt.

If you use md40 or MDBs to run MPs materials, you can choose whether to run the underlying MRP materials at the same time.

The operating principles of MPs and MRP materials are the same and are calculated based on the Common MRP logic.

In theory, MPS is executed to the finished product level, while MRP is executed to the material level below the finished product level. However, MPS or MRP can be used for different enterprise or product sub-properties, for example: if you do not need to adjust the planned orders from the system, use MPs. Otherwise, use MRP.