Sunday, February 15, 2026
Saturday, February 14, 2026
Question 4100 : MRP Area
In SAP PP for MRP Area as at S/4 1909,
(more than one answers)
A) An MRP area can have one or more default "Receiving Storage Location".
B) An MRP area can have one or more MRP area Storage Locations.
C) An MRP area for Storage Location must be created with 5 or more Alphanumeric code.
D) An MRP area must be assigned with an Address for default to Purchase Order Delivery address.
E) MRP area must be activated in the MRP Plant Parameter before it can be created.
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Answer: B, C
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(more than one answers)
A) An MRP area can have one or more default "Receiving Storage Location".
B) An MRP area can have one or more MRP area Storage Locations.
C) An MRP area for Storage Location must be created with 5 or more Alphanumeric code.
D) An MRP area must be assigned with an Address for default to Purchase Order Delivery address.
E) MRP area must be activated in the MRP Plant Parameter before it can be created.
.
Answer: B, C
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Thursday, February 12, 2026
Q&A in Class (2026-02-12) SAPSCM
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Question: What is the purpose of the Minimum Range of Coverage in the Coverage Profile for Safety Stock derivation in the MRP run for Safety Stock generation?
Answer: The fields Safety Stock and Minimum Stock can be found in MRP 2 data view,
The Safety Stock can be set via:
• Manual entry directly in the MRP2 data view
• Dynamic Safety Stock
• Calculated via Range of Coverage Profile (also assigned in the MRP 2 data view)• Calculated via DDRP (only if the Material is set as DDMRP Material)
The Minimum Safety Stock can be set via:
** It is important to note that this is NOT the same calculation as the RED, YELLOW, GREEN ZONE calculations in DDMRP Planning (meaning the Minimum Safety Stock, Target Safety Stock, Maximum Safety Stock <NOT the SAME> to DDMRP Red, Yellow, Green ZONEs.
• Manual entry directly in the MRP2 data view
• Dynamic Minimum Safety Stock• Calculated via Range of Coverage Profile (also assigned in the MRP 2 data view)
** It is important to note that this is NOT the same calculation as the RED, YELLOW, GREEN ZONE calculations in DDMRP Planning (meaning the Minimum Safety Stock, Target Safety Stock, Maximum Safety Stock <NOT the SAME> to DDMRP Red, Yellow, Green ZONEs.
in DDMRP > RED Zone = Safety Stockin DDMRP > RED Zone + Yellow Zone = Re-Order Pointin DDMRP > RED Zone + Yellow Zone + Green Zone = Maximum Stock
Average Daily Usage/Requirement (ADU/ADR) is the fundamental driver used to calculate the Red, Yellow, and Green zones in DDMRP. It represents a smoothed, calculated average of daily consumption (actual demand) over a specific time window, used to define buffer sizes.
**** It is important to note that Minimum Safety Stock (in the last testing) is not used if a Material is set with MRP Type with "DDMRP Procedure". (I have double-checked SAP documentation that verifies that DDMRP Materials do not calculate and use Minimum Safety Stock for the current S4hana 2023 version - the same I mentioned in class). DDMRP don't use minimum Safety Stock as it uses multi dynamic Buffer Zones which is the principle and mechanics of DDMRP logic.
**** However if the Material is set with MRP Type with "MPS" or "MRP" Procedure, then the Minimum Safety Stock will be used for Replenishment Calculations Tiggering Point.
Range of Coverage Profile was introduced in R/3 and still available for use in S/4HANA.
Range of Coverage Profile based Dynamic Safety Stock uses demand-driven (dynamic) safety stock, rather than a fixed quantity, allowing for flexible inventory levels based on fluctuating demand. AND this is similar in principle to the new concepts of DDMRP (Demand Driven MRP) in S/4HANA.
Minimum vs. Target vs. Maximum Safety Stock:Assuming ADR = 50pcs
• Minimum (Min) Safety Stock: Triggers procurement when stock is too low.
= Average Daily requirement x Minimum Days Supply= 50 x 2 Days (Minimum Days Supply)= 100
**** When Stock fall below this Minimum Safety Stock, Replenishment is triggered
• Target (Tgt) Safety Stock: The desired stock level for reordering.= Average Daily requirement x Target Days Supply= 50 x 5 Days (Minimum Days Supply)= 250
**** Replenishment quantity is expected to fill up to the Target Safety Stock level
• Maximum (Max) Safety Stock: Defines when excess stock exists.= Average Daily requirement x Target Days Supply= 50 x 7 Days (Minimum Days Supply)= 350
**** Replenishment beyond the Target Safety Stock is allowed but only until the Maximum Safety Stock level
ADR (Average Daily requirement) is determine by
• Planned Independent Requirement (PIR)(In this case, Finished Product, Sub-Assembly, and Components can use the Range of Coverage)
• Sales Order
• Dependent Requirement
Example Calculation:
ADR (Average Daily Requirement) = 50pcs
Minimum Days Supply = 2 Days, hence the Minimum Safety Stock is 2 x 50pcs = 100pcsTarget Days Supply = 5 Days, hence the Target Safety Stock is 5 x 50pc = 250pcsMaximum Days Supply = 7 Days, hence the Maximum Safety Stock is 7 x 50c = 350pc
Calculation logic as below:
Case 1: If the Stock is now 50pcs (below the 2 days minimum of 100pcs), the system will replenish up to 250pcs, hence the procurement proposal will be 200pcs up to the Target Safety Stock level.Case 2: If there is a Lot Size adjustment due to Lot Sizing Rule or Rounding Rule/Profile and the replenishment qty should be adjusted higher than the Target Safety Stock level, then the Maximum allowed in this case will be 300pcs (as current stock 50 + 300pc = 350 = Maximum Safety Stock).
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Question: Dealing with "Static" parameters for Planning.
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Answer: As we know that "Garbage in is Garbage out", MRP calculation is always based on the accuracy of the INPUT data. Therefore whether data in and not limited to the following:
the BOMthe Routing Cycle TimeThe MRP1,2,3,4 data view in the Material MasterOther parameters of Planning HorizonsPO delivery datePO confirmation requirementPIR etc etc
are expected to up-to-date. The questions asked is:
• Do we evaluate these parameters in certain regulated intervals to ensure its accuracy• Are there any tools or transaction code that assist in recommending the right parameters and offer option to update the various master data
Thoughts:
• Unfortunately SAP do not provide all the tools (transactions) for evaluating the actuals and use it to update the Master data.• For example one of good example of a tool is, transaction code WPDTC for Planned Delivery Time Calculation; see below.• Even if SAP do not provide such tools, then it is up to "us" to device methodologies the evaluate actual performance and update the "actuals" to the various master data to ensure the accuracy of INPUT to the MRP Calculation.
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Question: Notes on WPDTC transaction code for Planned Delivery Time Calculation.
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Answer: Transaction code WPDTC is used to calculate the actual planned delivery time by analyzing historical data, comparing order dates, and goods receipts. This function, is used to update vendor-specific master data (ie: Purchasing Info Record) based on actual, rather than assumed, delivery performance.
Points to be considered:
- Calculation of Average Lead Time: It calculates the average time between the PO date and the Goods Receipt (GR) date to determine a more accurate, data-driven planned delivery time.
- Mass Update Master Data: Users can select calculated results and directly update the planned delivery time in the Purchasing Info Record, Material Master, or Vendor master data.
- Performance Evaluation: It provides a report to analyze the deviation between the current planned delivery time and actual delivery performance.
- Flexibility in Calculation: The report can handle specific criteria, such as selecting by plant, vendor, or material, and allows for weighting partial deliveries.
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Question: Industrial Engineering Cycle Time vs the Actual Time.
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Answer: Industrial engineering (IE) standard times in production routings often differ from actual production times because standards represent the theoretical time for an "average" operator under ideal conditions, whereas actual production is subject to real-world variability, human factors, and systemic inefficiencies.
Case 1: Usually the IE times are often "TOO OPTIMISTIC" compared to ACTUAL run times resulting always in, the reason behind such "TOO OPTIMISTIC" deficiencies are:
• Unaccounted Downtime: Routing times often ignore unplanned equipment failures, breakdowns, or tool changes that occur on the shop floor.• Variability in Operator Performance: Standards are set for an "average" operator. In reality, skill levels vary, and an inexperienced operator or operator fatigue can significantly increase the actual time.• Over-Idealized Conditions: Time studies often assume the ideal, optimized environment, while actual production involves imperfect conditions, such as poor ergonomics or inefficient workstations.• Outdated Standards: If the process has been improved or if tools/machinery have evolved, old standard times become inaccurate. So, it goes back to how often IE re-evaluate the appropriate cycle times and update to the Routing.• Batching and Queue Time: Actual production involves waiting for batches to complete at previous stations. These "wait-for-batch" times can account for 90% or more of total manufacturing cycle time.
Case 2: Another scenario is when "TOO MUCH BUFFER" is included in the IE calculated time to the Routing BUT there seemed to be always more than enough Capacity. Since SAP uses the Routing from IE time, planner may then resort to EXCEL to adjust the cycle time for Planning Production!!!!
• IE and Planning : When Industrial Engineering (IE) works in a silo and fails to communicate with Production Planning, it creates a fundamental disconnect between engineered capability (how things should run) and production execution (how things are running).
Thoughts:
• To get Actual Production time isn't an easy task as it requires correct Actual Production Start Time and then Actual Production Finish Time for each operation; It is not an easy task (or "impossible") to dictate a requirement for Production to provide this result as the entry of confirmation times can be partial plus many other factors like wait for qc, etc etc making collection of actuals production times to be compared with the IE cycle times not an easy task from the standpoint of SAP data entry.
• Nevertheless, in order that IE deriving a balanced Cycle Time without being "TOO OPTIMISTIC" and "TOO MUCH BUFFER", IE should not work in isolation (in Silo), it must work both Production department and the Planning department OR communicate for a balanced Cycle Time input to SAP.
• To ensure "REALISTIC" Cycle-Times, some Organizations will place the IE as part of the Production department but reorganization is only part of the solution; it fundamentally only require people to work together.
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Question: Spreadsheet or No-Spreadsheet but SAP does not provide row and column view of Planning data and SAP system not flexible to make quick changes to master data for a one-off or case to enable more "effective planning", then what.
Answer: The perception of spreadsheets as "king" stems from their familiarity, low cost, and flexibility, but they are increasingly viewed as a "shadow system" that introduces risk and inefficiency as businesses grow.
• As the spreadsheet is "so FLEXIBLE" that it does not provide as a single source of truth to planning.
• Denying the use of spreadsheet many ways isn't always possible because ERP system do not provide the spreadsheet like presentation and "flexibility" making it cumbersome to work efficiently and coupled with data in the ERP system cannot be adjusted easily for planning purpose.
In the advent of FIORI App and continued collaboration between SAP and Microsoft, Excel is increasingly becoming the additional tool for data entry and data review. One such tool released for S/4HANA is the "pMRP" FIORI App depicted by an example screenshot above of the Capacity view of multiple work center on the period layout.
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Demand-Driven Material Requirements Planning (DDMRP) can be effective, but it is not a "magic wand" that works immediately without proper implementation. It is specifically designed to combat the high variability and complexity (VUCA world) that causes traditional MRP systems (Push system) to break down. _0406&07_aATP&BOP_Blogged.jpg)
Answer: One of the functionality introduce as part of the aATP (Advanced Availability to Promise) development in S/4HANA is the Advanced BOP (or Advanced Back-Order Processing), Advanced Backorder Processing (BOP) in SAP S/4HANA (aATP) enables organizations to efficiently manage and reprioritize pending customer orders during supply shortages, ensuring critical, high-priority, or "winner" orders are fulfilled first. It utilizes batch processing to automatically reevaluate, filter, and reallocate stock across complex supply chains based on preconfigured strategies like Win, Gain, Redistribute, Fill, and Lose.
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Question: What is DDMRP?
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Answer: Demand Driven Material Requirements Planning (DDMRP) was developed by Carol Ptak and Chad Smith. Both are prominent proponents of the MRP system and have work with/in APICS (American Production and Inventory Control Society) for many years. They then become the co-founders of the Demand Driven Institute (DDI), an organization established in 2011 to promote and develop these Dmand-Driven Strategies.
The Demand Driven Institute (DDI) is now the global authority and governing body for Demand Driven Material Requirements Planning (DDMRP) education, training, certification, and compliance. organization. The Institute sets the standards for DDMRP, promoting methodologies that replace traditional, forecast-driven planning with demand-driven approaches to improve supply chain flow, reduce inventory, and increase responsiveness.
The Core Concept of DDMRP is "Position, Protect, and Pull" - Instead of pushing inventory based on long-term forecasts (which causes the "bullwhip effect"), DDMRP manages inventory through a visual, pull-based system that only replenishes what has actually been consumed.
DDMRP vs. Traditional MRP:
- Driver: Traditional MRP is push-based (forecast-driven), while DDMRP is pull-based (demand-driven).
- Inventory: Traditional MRP often leads to overstocks and shortages, whereas DDMRP reduces total inventory (30-45% reduction) and improves service levels (97-100% on-time).
- Response: DDMRP reduces lead times by up to 80% and reduces the need for "firefighting" or expedited shipping.
SAP officially released Demand-Driven MRP (DDMRP) capabilities in September 2017 with the SAP S/4HANA 1709 release. It was introduced to help manufacturers manage complex supply chains by using buffer-level stocking, rather than relying solely on forecasts.
See the following Blog Post
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Question: Advanced Back-Order Processing.
_0406&07_aATP&BOP_Blogged.jpg)
Answer: One of the functionality introduce as part of the aATP (Advanced Availability to Promise) development in S/4HANA is the Advanced BOP (or Advanced Back-Order Processing), Advanced Backorder Processing (BOP) in SAP S/4HANA (aATP) enables organizations to efficiently manage and reprioritize pending customer orders during supply shortages, ensuring critical, high-priority, or "winner" orders are fulfilled first. It utilizes batch processing to automatically reevaluate, filter, and reallocate stock across complex supply chains based on preconfigured strategies like Win, Gain, Redistribute, Fill, and Lose.
Do note that Advanced BOP is only one of the features of aATP, other aATP feature like "RefDy (Release for Delivery)" FIORI App etc are desirable tools to many Availability check for mid term to short term Sales Order delivery confirmation.
See the following Blog Post:
See the following link to the Fiori Apps for Advanced BOP in the Fiori Library
Configure BOP Variant (App ID F2160)Configure BP Segment (App ID F2158)Schedule BOP Run (App ID F2665)Monitor BOP Run (App ID F2159)
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Question: Alignment and reacting to changes via FIORI tools.
Answer: MM, SD, QM, PM, PS provide several "Overview" FIORI App tools that combine multiple transaction data into one APP. For example, in MM, the "Procurement Overview" Fiori App ID F1990 comes with the ability to set "Area of Responsibility" so that the responsible person for groups of vendor (and other criterias) and SAVE as different FIORI App variants to allow immediate analysis of Problems, for example:
• Contracts that are Expiring which require review• PRs without vendor• PR with vendor but waiting to be converted to PO• PO with delivery date already outstanding• etc
See the following link to the FIORI App in the Fiori Library:
From the operation point of view, to be align and responsive to the "current situations" is an important day to day operational requirement in any department in any organizations. Traditionally, SAP does not a variety of transaction codes each dealing with different motivations. We appreciate that SAP S/4HANA is beginning to offer tools in FIORI Apps that provide "Insights" to these operational issues in such FIORI apps likes the "Procurement Overview" in MM that publishes such operational insights on-line real time to the App to allow more efficient response to these daily tasks.
Another example is the "Order Fulfillment" Fiori App for SD Issue identification and Resolution. Check the FIORI (App ID (F0029A/F0029):
Click link below:
Do note that SAP may update the Apps like it is now F0029A (the above is link the F0029).
Suggestion: SAP Fiori applications generally offer better, more efficient tools for addressing operational issues compared to the traditional SAP GUI. Fiori provides a modern, role-based user experience (UX) that simplifies complex tasks, enables real-time analytics, and provides better mobile access for field operations.
Click here to go to Fiori Library:
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Tuesday, February 10, 2026
Monday, February 9, 2026
Q&A in Class (2026-02-11) S4222
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Question: Video Library and SAP Official Resources for SAP S/4HANA
See the following official SAP link to Video Library for SAP S/4HANA:
https://help.sap.com/docs/SAP_S4HANA_ON-PREMISE/VideoLibraryforSAPS4HANA/
(Note that the "Manufacturing" Video Library may still be "in Construction" at the time of access)
(* You can revisit in the near future for new Video updates by the SAP team members)
See comprehensive SAP resources main page:
See the following links on official SAP resources on S4HANA:
https://blog.sap-press.com/key-differences-between-sap-ecc-and-sap-s4hana/
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Question: How does IBP integrate to the S/4 backend Demand Planning?
Answer: SAP Integrated Business Planning (IBP) integrates with the SAP S/4HANA backend to enable seamless data exchange for supply chain planning, using specialized tools to connect the cloud-based IBP with on-premise or cloud ERP systems or Cloud S/4HANA deployment. This is typically achieved via SAP Cloud Integration for Data Services (CPI-DS) or SDI, enabling downstream production and procurement planning.
SAP IBP Releases and Transfer the demand plans to S/4HANA by transferring finalized, high-level, or constrained forecasts—often from the FINAL CONSENSUS DEMAND key figure to become Planned Independent Requirements (PIRs) in S/4HANA.
It is important to note that APO Demand Plan or SOP Plan also requires Releases and Transfer the demand plans to S/4HANA PIRs. The Principle and Structured method are well documented when SOP (Sales and Operation Planning) was released by consultants Richard Ling of the Oliver Wight organization in the mid-1980s. The structured methodology has been adopted by all MRP systems developed since then including the SAP system in its deployment of (ALL uses the SAME Principle of Release and Transfer the Demand Plans to PIR):
• SOP (Sales and Operation Plan) in R/3 1992• DP (Demand Planning) in APO in 1999 (approximation)
• IBP (Integrated Business Planning) in S/4 in 2014
You can see the following Blog Post for more details:
or Goto the section "IBP (Integrated Business Planning" in the Blog link section
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Question: Review S/4HANA Fiori Apps.
SAP Fiori Library via the link https://fioriappslibrary.hana.ondemand.com/Viewer/
and the following links for Fiori demo and settings:_Blogged.pptx.jpg)
Answer: To upload and download Excel/CSV files for managing Planned Independent Requirements (PIR) in the SAP Fiori "Maintain PIRs (App ID F3445)" app, download a template using the "Excel download" button, edit the CSV file, and use the "Upload and Edit" button to import changes. Ensure you have the necessary roles (e.g., SAP_BR_PRODN_PLNR) and have assigned your area of responsibility.
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Question: Review the the steps to upload PIR from Excel to the "Manage PIR" Fiori App.
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Answer: To upload and download Excel/CSV files for managing Planned Independent Requirements (PIR) in the SAP Fiori "Maintain PIRs (App ID F3445)" app, download a template using the "Excel download" button, edit the CSV file, and use the "Upload and Edit" button to import changes. Ensure you have the necessary roles (e.g., SAP_BR_PRODN_PLNR) and have assigned your area of responsibility.
Review the Excel download + upload of PIR using "Manage PIR" Fiori App:
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Question: Review of Strategy 50 applications in Advanced Planning.
S_4-2023)MRPLive_Blogged.jpg)
https://froggysap.blogspot.com/2025/05/sap-pp-strategy-50-planning-without.html
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Question: Review parameters/functionality differences in classic MRP transactions vs MRP Live.
Answer: MD01 (Classic MRP) and MD01N (MRP Live) differ primarily in speed, technology, and functionality, with MD01N being designed for high-performance planning on SAP S/4HANA. MD01N utilizes in-memory database capabilities to plan faster, allows for multiple plants/materials in one run, and does not create traditional MRP lists, unlike the slower, legacy MD01.
Here is a blog post illustrating the major difference in classic MRP via MD01/MD02 vs MRP Live via MD01N:
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Question: What happens when Release the Production, the component availability check returns a dialogue of missing parts?
See the following Blog Posts for the configuration and execution case:1 = When missing parts, User decide to Release the Production Order Exit without Release2 = When missing parts, System proceed to Release the Production/Process Order3 = When missing parts, the Release is Rejected with "MPST" system status to the Header
https://froggysap.blogspot.com/2026/02/availability-check-in-production-orders.html
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Question: Strategy 10 vs Strategy 11
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• Strategy 11: only consider PIR in planning run (ignore both stocks and Sales Orders)
• Strategy 10: consider stocks, PIR in planning run (ignore Sales Orders)
• Strategy 40: consider stocks, sales orders, PIR in planning run
See the following Blog Posts for setup and processing steps of Strategy 10 and 11:
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Question: Review of Consumption and Reduction logic for PIR with Sales Order with Consumption Mode "05".
Answer: 2 Points of discussion:
• Consumption mode 5 in SAP, introduced in S/4HANA, represents Period-Specific Consumption for Planned Independent Requirements (PIRs). It ensures that customer orders or other demands only consume PIRs located within the same, exact planning period (e.g., within the same month or week). This prevents sales orders from consuming forecasts from different periods.• PIR consumption and reduction in SAP represent how forecasted Planned Independent Requirements (PIRs) are adjusted by actual sales orders. Consumption is a dynamic, visual reduction in MD04 (planning only), while reduction is a hard, physical decrease of the PIR quantity in the database, typically triggered by goods issue or delivery. This ensures forecasted demand is not double-counted once actual sales orders are confirmed.
Here is a demonstration via a Blog Posts recently created:
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Question: Review the setup of the Navigation profile in MD04.
Answer: A Navigation Profile in SAP MD04 (Stock/Requirements List) is a customizable tool used to accelerate workflow by adding custom buttons, menu items, and transaction shortcuts directly to the ALV toolbar, facilitating faster access to related transactions (e.g., MD01N, MMBE, MD05, ME53N etc). It allows users to define, save, and assign personal navigation settings to improve efficiency.
See the following Blog Post:
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Question: When IBP released PIR, does the "pMRP" Fiori Apps capability to allow change of the PIR and release new quantities in the PIR violate the fundamental Principle of IBP.?
Answer: Based on Best Practices for SAP Integrated Business Planning (IBP) and its integration with SAP ECC or S/4HANA, the consensus, in most cases, is that Planned Independent Requirements (PIRs) released from IBP should not be changed manually at the PIR level (e.g., MD62 in ERP) anymore.
The goal of implementing a robust planning tool like IBP is to establish a "single source of truth."
However, the question remains that why do SAP developer came out with the functionality in the "pMRP" Fiori App to allow changes to the PIR knowing that this violates the principles behind the fact that IBP's release PIR should be the "single source of truth"?
The main functionality of simulating the PIR in a Scenario-based environment (active or non-active) was the focus of the "Long Term Planning" (PP-MP-LTP) introduced when SAP released the R/3 system (likely in the 1990s). The LTP functionality probably ceased development in SAP moved to work on other functionalities of PP in the S/4HANA system and one such new functionality is the "pMRP or Predictive MRP" Fiori App which complements or some say replacing the aged LTP features.
A couple of points worth mentioning (in personal opinion):
- The organization do not use IBP, the "pMRP" Fiori App tool is used as the main tool to derive a Feasible PIR to be released for Planning.
- Within a pMRP simulation, you can adjust the demand quantities to resolve capacity bottlenecks or material shortages. These changes are made in a simulated state and do not immediately change the original PIRs in the operational system. However, the simulation need not be released BUT rather to be used as a proof of "Capacity Overloads calculated by pMRP" to the IBP Planner to re-evaluate their Planning quantities.
- It is also possible that use of "pMRP" to be considered as a Collaboration tool with IBP Planner to decide if shifting planned quantities is appropriate so that the changed PIR plans are approved collectively before Releasing the Plans as active PIR. Thus, the question of ownership of changed quantities in the pMRP results must be addressed.
- Alternatively, IBP may be releasing a non-active PIR to the S/4 backend for evaluation via "pMRP" Live with Collaboration planning to adjust the PIR quantities within specific tolerances to be released as active PIR; if this is a desirable planning policy for the organization.
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Question: Review the ReOrder Point and Safety Stock calculation in the SAP system.
Answer: Use the MRP type to configure ROP and/or Safety Stock Calculations, the system uses the following Formula:
• Automatic Safety Stock= Safety Factor (R) × Square root of (Lead Time (W)) × MAD• Automatic ROP = Safety Stock + (Average Daily Requirement × Replenishment Lead Time)
See the following Blog Posts for the data and calculations in SAP for the above:
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Question: Review of the Class Exercises
• 01_Explore the Planning Process at a Glance
• 02_ExploreProductionPlanningMasterDataAndSAPFioriApps
• 03_ApplyMake-to-OrderProduction(Strategy20)
• 04_ApplyPlanningWithoutFinalAssembly(Strategy50)
• 05_ApplyPlanningwithFinalAssembly(Strategy40)
• 06_ApplyPlanningOnAssembly(Strategy70)
• 07_ReorganizePlannedIndependentRequirements
• 08_RunPredictiveMRP
• 09_PlanInteractivelyUsingtheMonitorMaterialCoverageSAPFioriApp
• 10_ApplyingPlanningRunwithMRP-Live
• 11_ApplyDemand-DrivenReplenishmentinSAPS/4HANA
• 12_Finite MRP-Live Planning with PP/DS
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Question: Notes on the Basics of DDMRP Logic.
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The Demand Driven Institute (DDI) is now the global authority and governing body for Demand Driven Material Requirements Planning (DDMRP) education, training, certification, and compliance. organization. The Institute sets the standards for DDMRP, promoting methodologies that replace traditional, forecast-driven planning with demand-driven approaches to improve supply chain flow, reduce inventory, and increase responsiveness.
The Core Concept of DDMRP is "Position, Protect, and Pull" - Instead of pushing inventory based on long-term forecasts (which causes the "bullwhip effect"), DDMRP manages inventory through a visual, pull-based system that only replenishes what has actually been consumed.
DDMRP vs. Traditional MRP:
- Driver: Traditional MRP is push-based (forecast-driven), while DDMRP is pull-based (demand-driven).
- Inventory: Traditional MRP often leads to overstocks and shortages, whereas DDMRP reduces total inventory (30-45% reduction) and improves service levels (97-100% on-time).
- Response: DDMRP reduces lead times by up to 80% and reduces the need for "firefighting" or expedited shipping.
SAP officially released Demand-Driven MRP (DDMRP) capabilities in September 2017 with the SAP S/4HANA 1709 release. It was introduced to help manufacturers manage complex supply chains by using buffer-level stocking, rather than relying solely on forecasts.
See the following Blog Post
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Question: Is there a way to setup to run MRP Live right after PPDS Run completed?
Answer: Yes. via SM36 for S/4HANA Jobs with conditions meaning for example:
Use SM36 to setup
Job 1 with example Job Name "MD01N' for Program PPH_MRP_START"Job 2 with example Job Name "PPDS" for Program /SAPAPO/BACKGROUND_SCHEDULING"then in Job 2 use "Start Condition" with "After Job" Condition to Job name "PPDS"
Caution: you may need to check with Basis Consultant if the Job created for "Schedule MRP Run" Fiori App (Fiori App for backend MD01N) can also be included in SM36.
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Question: Where to setup of the PP of PPDS and DS of PPDS Horizon?
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Answer: Do check on the latest SAP S/4HANA version for any changes in the settings of PP/DS Horizon, Detailed Scheduling Horizon, and Time Fence and the following are as at S/4HANA 2023.
- PP/DS Horizon (CONVH): Defines the timeframe in calendar days within which PP/DS heuristics plan, typically used to generate procurement proposals to satisfy production requirements (mid to long term planning)
- Set at the Material Master "Advanced Planning" data view (MM02) Priority 1
- Set at the Planning Version (/SAPAPO/NVM) Priority 2
- Detailed Scheduling Horizon (DS Horizon): PP/DS in S/4HANA enables detailed scheduling, which focuses on sequencing operations on resources, often within a shorter, specific, detailed scheduling window (short term sequencing of production orders)
- DS Horizon can be set in the Detailed Scheduling Planning Board itself
- Time Fence: n the product master, this defines the period within which PP/DS orders cannot be changed by the heuristic
- Time Fence is set in the Material Master MRP1 data view
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Question: In S/4HANA, when materials are planned using PP of PPDS and MRP Live, the system NEVER creates MRP List (as at S/4HANA 2023), is there any way to get the SAP system to create the MRP List (the snapshot of the last MRP run) at al?
The new MRP Live was designed with a focus in performance improvement, so it wouldn't make any sense to include an additional logic in MRP Live to aggregate the MRP results into a table, considering that this information would be quickly outdated and also because the actual information can be quickly read from the Stock/Requirements List. Therefore, when we plan a material with MRP Live in SAP S/4HANA, it will not generate an MRP List. Only materials planned with the Classic MRP transaction (such as MD01) will still generate MRP lists.
Key OSS Notes and Considerations:
- SAP OSS Note #2268085: This is the primary note explaining that MRP Live on SAP HANA does not create MRP lists. It highlights that the MRP list is part of the SAP S/4HANA compatibility scope with limited usage rights.
- SAP OSS Note #2269324: Compatibility Scope Matrix for SAP S/4HANA: Details that MRP lists are part of the compatibility scope, meaning their usage is limited and they are being phased out.
- SAP OSS Note #2554382: MRP List (MD05) Can't Be Found After MRP Live Run: Explains that MRP Live does not create MRP lists to improve performance, except for specific termination scenarios.
- SAP OSS Note #2640393: Explains the detailed differences between transaction MD01N (MRP Live) and classic MRP (MD01/02/03), specifically regarding the "Create MRP List" parameter.
- SAP OSS Note # 2269324: MRP List is part of the SAP S/4HANA compatibility scope, which comes with limited usage rights. Classic MRP which can generate MRP List is still available in SAP S/4HANA.
Alternative Solution:
- Use Dynamic Lists: Shift to using MD04 (Stock/Requirements List) or the Fiori app Manage Material Coverage to evaluate current supply and demand or use the improved Fiori UX of "Material Coverage" Fiori App.
- Force Classic MRP: If a material absolutely requires an MRP list, you can use transaction MD_MRP_FORCE_CLASSIC to ensure it is planned via the classic engine instead of the HANA-optimized one.
- Planning File Clean-up: If lists are missing even in classic MRP, run report PPH_SETUP_MRPRECORDS to ensure the planning file is correctly populated.
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Sunday, February 8, 2026
Question 4099 : Classic Kanban Replenishment for Production Orders
In SAP PP as at S/4 1909, Classic Kanban Replenishment for Production Orders have which the following characteristics ?
A) Material set with MRP Type “PD” (MRP Planning) are not allowed for Classic Kanban Control Cycle.
B) The Storage Location view in the Material Master must set for without Planning.
C) MRP type "ND" will allow Classic Kanban Control Cycle to be created for the Material.
D) Purchasing Group is Mandatory assignment in the Control Cycle for External Procurement Strategy.
E) MRP Controller is Mandatory assignment in the Control Cycle for In-house Procurement Strategy.
.
(only one answer)
Answer: A, C, E
A) Material set with MRP Type “PD” (MRP Planning) are not allowed for Classic Kanban Control Cycle.
B) The Storage Location view in the Material Master must set for without Planning.
C) MRP type "ND" will allow Classic Kanban Control Cycle to be created for the Material.
D) Purchasing Group is Mandatory assignment in the Control Cycle for External Procurement Strategy.
E) MRP Controller is Mandatory assignment in the Control Cycle for In-house Procurement Strategy.
.
(only one answer)
Answer: A, C, E
Relevant Master Data Management Transaction sfor Kanban:
• Material Master (MM01, MM02, MM03)• Production Supply Area (PK05)• Control Cycle (PK01, PK02, PK03 or PKMC)• Print Kanban (PK17)• Change Life-Cycle Status (PKLCM)
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