1 SAP Logistic Chair or Production & Operations Management University of Vienna All for One Vienna, Austria Franz Birsel Materials Requirements Planning

2 All for One Vienna, Austria Chair of Production & Operations Management University of Vienna Task of Disposition  Due providing of the necessary material requirement  Providing of the material requirement for the disposition  Providing of the internal material requirements  Long-term management of the material availability  Dissolving lists of material  Preparation of planned orders for the production  Preparation of Beschaffungsvorschlägen for the purchasing dept.

3 All for One Vienna, Austria Chair of Production & Operations Management University of Vienna Methods of Dispositions  Consumption-driven Disposition based only on the use of materials in the past  Deterministic or demand-driven Disposition based on the demand of materials in the future

4 All for One Vienna, Austria Chair of Production & Operations Management University of Vienna Consumption-driven Disposition  Activator of production- or providing demands in the consumption-driven disposition is the undercutting of a defined minimum stock level  The stock level should be high enough that the provision of material during the delivery time of the supplier or the time of inplant production is secured

5 All for One Vienna, Austria Chair of Production & Operations Management University of Vienna Deterministic Disposition  Activator of the production- or providing demands in the deterministic disposition is the existence of pegged requirements These are e.g.  Customer orders  manually triggered production orders Planaufträge  The deterministic disposition does not produce any supply which are not really needed

6 All for One Vienna, Austria Chair of Production & Operations Management University of Vienna Types of Disposition  Single item, single-level planning  Single item, multi-level planning  Total planning

7 All for One Vienna, Austria Chair of Production & Operations Management University of Vienna Single item Single-level planning  Single item, single-level planning is conducted manually online  Only the entered material is planned. If the material has a bill of material, the bill of material will be dissolved and all materials of this bill of material planned.  Subjacent lists of materials are not planned.  The single-object single-stage planning is usually conducted in the warehouse in order to check the availability of each material.

8 All for One Vienna, Austria Chair of Production & Operations Management University of Vienna Single item Multi-level planning  The single item, multi-level planning is conducted manually online.  The entered material is completely planned. If the material has a bill of material, the bill of material will be dissolved and all materials of this bill of material planned.  Subjacent bills of materials are planned up to the lowest level.  The single-object single-stage planning is usually conducted in the production management and control in order to check the availability of every material of a production order.

9 All for One Vienna, Austria Chair of Production & Operations Management University of Vienna Overall Planning  The overall planning can be conducted manually online or as background job.  As a rule the overall planning is periodically automatically planned.  The period depends on how flexible the production has to react to changes in the pegged requirements.

10 All for One Vienna, Austria Chair of Production & Operations Management University of Vienna Amount of the overall planning  New Planning A new planning is normally conducted only by implementing a system  All materials are planned that have a valid dispo-attribute.  Net-Change-Planning Every disposition-relevant change of material places internally an attribute on the material level which marks the material for the next planning.  The advantage is a reduction of the duration of planning; materials which have not been changed, will not be handled.

11 All for One Vienna, Austria Chair of Production & Operations Management University of Vienna Level of Disposition Planning  The demand planning is generally conducted on factory level, i.e.in planning the whole available stock in the factory will be considered.  The stocks of several storage locations can be dissolved or planned independently from the disposition. These stocks will not be counted in the disposition on the factory level.  Moreover, the demand planning can also be conducted for several fields of disposition. In one field of disposition more storage locations can be combined and the demand planning can be conducted separately from the factory for this field of disposition.  Fields of disposition enable also a differentiation of the demand planning within a factory.

12 All for One Vienna, Austria Chair of Production & Operations Management University of Vienna Questions ???