Answer:
The Process Flow:
1. The system calculates net requirements for all the requirement quantities that are to be planned. The system thereby compares available warehouse stock or the scheduled receipts from Purchasing and Production with planned independent requirements, material reservations and incoming sales orders. In the case of a material shortage, that is, if the available stock (including firmed receipts) is smaller than the quantity required, the system creates procurement proposals.
2. The system calculates the quantity recorded in the procurement proposal according to the lot-sizing procedure that you specified in the material master. Various lot-sizing procedures are supported by the system. You can define a lot-sizing procedure for each individual material.
3. The procurement proposal is also scheduled which means that, for materials procured externally, the delivery and release dates are determined, and for materials produced inhouse, the production dates are calculated.
4. For materials produced in-house, the dependent requirements of the components are determined during the BOM explosion. For each component, the dependent requirements date is displaced by the in-house production time of the higher-level material.
5. Additional requirements (unplanned goods issues, excess
consumption of components in production, and so on) can be covered by using
the materials forecast within MRP. The historical values of unplanned requirements
form the basis of the forecast. These requirements are then taken into
account along with the exact requirement quantities.
The whole production process takes place in the following steps.
1) Forecasting of the future demand.
2) Demand Planning (Flexible planning / Standard SOP).
3) Transfer Demand Planning data to Demand Management.
4) Demand Management.
5) MRP - Material requirement planning will happen in
the following steps:
a) Net requirements are calculated
b) based on the various configuration parameters like
the requirement type, planning strategy & MRP type...etc, planned orders
are generated with schedule dates & quantities.
6) Capacity Planning.
7) Conversion of Planned Orders to Production Orders & execution.
In short this is the whole process of planning.
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