What Are the Differences Between MRP Live and Classic MRP? (2024)

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What Are the Differences Between MRP Live and Classic MRP? (1)by SAP PRESSon May 21, 2021

SAP S/4HANA offers two different options to execute MRP: classic MRP and MRP Live. To understand when to use classic MRP versus MRP Live, we need to understand a little bit about MRP design and the differences between the options.

Because it needs to run a large data selection from the database and to execute complex algorithms to calculate shortages and create replenishment elements, MRP is usually a performance-intensive application.

In SAP ERP, the database was usually a performance bottleneck for the MRP execution because too many MRP elements had to be selected from the database and processed by ABAP code. MRP was originally designed with logic by which, for each material to be planned, the planning elements were selected individually from the database; each planning element selected was post-processed by ABAP source code, which would check if it was a valid element for MRP. For example, MRP would first select planned orders, and then each planned order would be validated by ABAP source code. Then MRP would select production orders, and each order would be validated. Then it would select purchase requisitions, and so on, until it finished reading and validating all the planning elements.

When SAP launched SAP HANA, a powerful in-memory and columnar database, it was clear that MRP performance could be improved by it. But though this traditional MRP logic worked fine for many years in SAP ERP, it did not take advantage of SAP HANA’s internal parallelism, meaning that running MRP on an SAP HANA database would not result in major performance gains. To extract the best of the SAP HANA resources and tune the MRP performance, the underlying logic of MRP had to be completely redesigned.

The first performance improvement delivered by SAP was to redesign the data selection from the database during the MRP run. Instead of selecting the MRP records one by one, MRP optimized for an SAP HANA database would trigger the whole data selection at once and allow the SAP HANA internal parallelism to work its magic. In a second step, ABAP code would post-process and validate all the planning elements selected from the database, and the rest of the MRP logic would remain the same.

This change improved the MRP performance, but it was restricted to the data selection. There was still room for improving the overall MRP performance through the power of the SAP HANA database. Therefore, MRP Live was created, pushing the MRP logic into the SAP HANA database and allowing an in-memory planning run, which was much faster than classic MRP.

Note: In SAP ERP on SAP HANA, the performance optimizations for classic MRP and the new MRP Live should be activated by a business function. In SAP S/4HANA, however, the performance optimizations for MRP are active by default.

The new MRP Live is executed in a different transaction, which means that we can choose whether we want use classic MRP or MRP Live for planning. It also brings some simplifications and changes when compared with classic MRP, so if we need to choose which one to use, it is important to understand those differences.

One of the simplifications with the most impact is related to MRP Lists. When MRP was created many years ago, it used the concept of the MRP List: a static report that provides a screenshot of the MRP results for each material. The MRP results were saved into a single table, which could be easily and quickly accessed by the user after the MRP run.

SAP S/4HANA offers the new MRP Live and the SAP Fiori applications of the MRP co*ckpit, which means faster MRP and a new user interface to evaluate the MRP results. In addition, the performance was improved in the classic MRP transactions, such as the Stock/Requirements List, which means that the user can work always with live data, instead of analyzing a screenshot of the past MRP run. With all those new features, the MRP List became obsolete, so when we run MRP Live in the new transaction, Transaction MD01N, the MRP List will no longer be generated during the planning run.

MRP Lists were traditionally saved into table MDKP, MDTB, or MDTC, and those tables were commonly used for the creation of custom reports based on the MRP results. Those reports will not work when using MRP Live because they will no longer be updated.

Tip: SAP recommends function module MD_MDPSX_READ_API to be used in custom reports to read the information previously read from the MRP List tables.

Another simplification that affects MRP Live is related to creation indicators, which allow us to choose whether it should create planned orders, purchase requisitions, or delivery schedules for materials procured externally. MRP Live will not use creation indicators, nor does it offer the option to create purchase requisitions only within the opening period defined in the scheduling margin key.

MRP Live will always create purchase requisitions for materials procured externally, or it can create schedule lines when a valid scheduling agreement is selected as a source of supply. If the creation of planned orders for materials procured externally is still required during the MRP Live planning run, we can use the ABAP-managed database procedures (AMDP) BAdI PPH_MRP_SOURCING_BADI => SOS_DET_ADJUST to change the MRP element to be generated during the planning run.

The last major difference between MRP Live and classic MRP is related to the BAdIs available to implement any custom code. While classic MRP is almost entirely written in ABAP, the new MRP Live logic was pushed down into the SAP HANA layer, meaning that it is almost entirely executed with SAP HANA stored procedures. This change allowed for a performance improvement, but classic MRP BAdIs that were previously executed in ABAP will no longer be called in MRP Live. This means that any custom logic written in ABAP-based BAdIs will have to be translated into the new AMDP BAdIs provided by SAP in MRP Live.

Tip: If it is not possible to translate a BAdI into its respective AMDP BAdI, we can use Transaction MD_MRP_FORCE_CLASSIC to force a material to still be planned in ABAP, even when using the new MRP Live transaction, Transaction MD01N. If we force too many materials to be planned in ABAP, however, we may not see any performance improvement when using MRP Live, so it is always advisable to use the new AMDP BAdIs.

One additional feature of MRP Live is the possibility to plan PP/DS advanced planning materials when PP/DS is used in SAP S/4HANA system. We can combine PP/DS and the MRP planning run in a single job, reducing the effort of synchronizing different jobs for materials planning. This feature is not available in classic MRP; it is a major improvement delivered for MRP Live.

Finally, MRP performance is also a major difference between MRP Live and classic MRP. MRP Live was developed to improve MRP overall performance because the planning run can take hours to be executed. However, note that though MRP Live is much faster than classic MRP when planning large sets and very complex materials (e.g., materials with complex BOMs), classic MRP can still be faster when planning a few simple materials.

These critical differences are key when deciding whether to use the new MRP Live or classic MRP, but they are also important for defining a migration strategy to SAP S/4HANA. For example, companies that currently rely heavily on MRP Lists or on custom reports based on MRP Lists will have to carefully plan steps to migrate to MRP Live by adapting the custom code.

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Another thing to consider is that it is possible to adopt MRP Live gradually, rather than abandoning classic MRP and exclusively using MRP Live all at once. For example, we can adopt a hybrid approach: use MRP Live for planning large sets of materials and taking advantage of the performance improvement, but keep using classic MRP for single-item planning, in which we can see the results before saving and for which classic MRP performance might still be better.

However, a note of caution here: before defining any migration strategy or choosing between MRP Live and classic MRP, always keep in mind that MRP Live has been defined by SAP as the target architecture and that classic MRP is now considered part of the SAP S/4HANA Compatibility Pack, which means that new features and improvements will mostly focus on MRP Live, rather than classic MRP.

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Editor’s note: This post has been adapted from a section of the book Material Requirements Planning with SAP S/4HANA by Caetano Almeida.

What Are the Differences Between MRP Live and Classic MRP? (2024)

FAQs

What is live MRP? ›

MRP Live is an innovative, intuitive and flexible material requirement planning feature in SAP S/4HANA that allows material planners to perform MRP at a faster rate than in SAP ERP. In MRP Live, individual material planners can plan for specific material or group of materials that is their responsibility.

What is classic MRP in SAP? ›

Classic MRP has a complicated set of rules for instructing the MRP run to create either purchase requisitions or planned orders for externally procured materials. MRP. parameters “Create purchase.

What are different MRP types? ›

MRP is performed based on the present and future sales figures, and planned and exact requirement quantities calculate net requirement calculations. Following MRP types are available − Manual reorder point planning. Automatic reorder point planning. Forecast-based planning.

What is classic MRP in s4 Hana? ›

Classic MRP is a set transaction that can be used to plan materials. It allows us to plan an entire plant or just one material. Classic MRP transactions such as Transactions MD01-MD02 and MD03 have been available from the earliest versions of SAP's ERP software.

What is the difference between MRP live and classic MRP? ›

MRP Live is capable of planning numerous materials in many plants and it always plans all MRP Areas. Classic MRP comes with a complex set of rules meant for instructing the MRP run for either creating the purchase requisitions or for the planned orders for the externally procured materials.

What are the benefits of MRP live? ›

Using MRP Live, you can benefit from improved performance and execute the planning run in much shorter cycles. This means that you can execute several planning runs daily providing the MRP controller with the following benefits, for example: More up-to-date supply and demand information on which to base decisions.

What are the different types of MRP in SAP? ›

MRP Types can be categorized in to 2 major categories, namely Material Requirement planning and consumption based planning.

What is material scope in MRP live? ›

"Material Scope" field in MRP live selection screen influence whether all material is selected or only materials which are marked for MPS is considered. In MRP Live selection screen we have two additional fields "Product Group" and "MRP Controller" to filter the materials are selected for planning.

What is the difference between MRP and MPS in SAP? ›

In short, an MRP, or Materials Requirements Planning, is used to determine how many materials to order for a particular item, while an MPS, or Master Production Schedule, is used to determine when the materials will be used to produce an item.

What is the main difference between MRP? ›

The primary difference between ERP and MRP is that ERP systems help to plan and automate a variety of back-office business functions, whereas MRP systems focus on materials management. ERP directly touches accounting, manufacturing, supply chain, customer management, quality, processes and planning.

What is the key difference between the MRP? ›

Difference between MRP and MRP II :
MRPMRP II
MRP is simply about ensuring the materials which are available to manufacture a specific part in a specific volume.It take care of all other aspects of a job including ordering, tracking inventory and ensuring capacity.
5 more rows
Mar 29, 2022

What is the difference between MRP? ›

MRPs (Material Requirements Planning) are a great way for manufacturers to manage their shops and include inventory, capacity planning, and scheduling features. However, ERPs (Enterprise Resource Planning) are an even better way for manufacturers to take control of their shops.

What does one MRP means in SAP's 4hana enterprise management? ›

Material requirements planning (MRP) is one of the most important functions in an ERP system but is also very performance-intensive. Depending on the size and complexity of the company and the production processes, it can take several hours. For this reason, the MRP is traditionally planned as an overnight job.

Where is MRP type in SAP? ›

SAP MRP type is a field that is maintained in the material master MRP 1 view under MRP procedure data.

What is the purpose of MRP in SAP? ›

MRP is the function or software module that calculates the need for materials and recommends production and purchasing activity (orders) to satisfy those demands. MRP planning is the process of exercising those calculations to develop a plan.

What is the main difference between MRP and MRP II? ›

But what's the difference when it comes to MRP I vs. MRP II? In short: MRP II (the successor to MRP I) includes the same core scheduling tools and inventory management, but adds functionality to forecast demand, manage capacity, boost quality and more.

Why MRP Live is faster? ›

More up-to-date supply and demand information on which to base decisions. Faster reaction to demand changes reduces the risk of stock-outs and means that you can reduce safety stocks. Match demand and supply more efficiently than was previously possible. Identify and react to issues faster than was previously possible.

What are the main differences between MRP I MRP II & ERP? ›

MRP I stands for Material Requirements Planning. MRP II refers to Manufacturing Resource Planning. ERP is Enterprise Resource Planning.

What are the advantages of MRP live over classic MRP? ›

We can combine PP/DS and the MRP planning run in a single job, reducing the effort of synchronizing different jobs for materials planning. This feature is not available in classic MRP; it is a major improvement delivered for MRP Live. Finally, MRP performance is also a major difference between MRP Live and classic MRP.

How does MRP live minimize the volume of data? ›

MRP Live reads material receipts and requirements, calculates shortages, and creates planned orders and purchase requisitions all in one database procedure. This minimizes the volume of data that has to be copied from the database server to the application server and back, which considerably improves performance.

What are the two main disadvantages of MRP systems? ›

Along with an array of benefits an MRP system could provide, it may also have its disadvantages. These can, however, be mitigated by proper planning of the implementation process.
...
Disadvantages of MRP systems
  • Implementation takes resources. ...
  • Business needs have to be clearly defined. ...
  • Everyone needs to be on board.
Sep 14, 2021

What are the three components of the MRP system? ›

What Are the 3 Main Inputs for MRP? The three basic inputs of an MRP system include the Master Production Schedule (MPS), Inventory Status File (ISF), and Bill of Materials (BOM).

What are the three major inputs of MRP? ›

The three basic inputs of an MRP system are the Master Production Schedule (MPS), Inventory Status File (ISF) and Bill of Materials (BOM). The MPS is simply the quantity and timing of all end goods to be produced over a specific time period.

What is the difference between MRP and JIT? ›

MRP looks at the customer demand to identify which materials are required for production and determines when they are needed. JIT is mostly used in scheduling and purchasing to ensure that products are produced only when they are needed and materials are ordered to arrive just before they are required for production.

What are 4 MRP inputs? ›

MRP Inputs

MRP Information Sources: There are four key information sources that MRP systems use to make their calculations. These sources include production schedules, material specs, production cycle times and supplier lead times.

What is the difference between material planning and MRP? ›

MRP displays the number of components or materials required and when production intends to make or use them. The material requirements plan establishes when the components/parts are needed to make each end item to be used in the final product.

What does MRP stand for? ›

Material requirements planning (MRP) is a system for calculating the materials and components needed to manufacture a product. It consists of three primary steps: taking inventory of the materials and components on hand, identifying which additional ones are needed and then scheduling their production or purchase.

What is the relationship between the MPS and MRP? ›

What Is the Relationship Between MPS and MRP? The master production schedule is the main driver of the material requirements plan. Along with the BOM, MPS can determine what components are needed from manufacturing and what components need to be purchased. The MPS is a priority plan for manufacturing.

What is MRP in SAP for material master? ›

Material Requirement Planning (SAP MRP) is a tool which helps in planning the requirement quantities and schedules of a given material. It not only ensures availability of the material for which MRP is carried out, but also ensures availability of the components (of all the BOM levels) below in the BOM structure.

What is the MRP meaning? ›

Maximum retail price (MRP) is a manufacturer calculated price that is the highest price that can be charged for a product sold in India and Bangladesh.

What does the term MRP mean? ›

MRP (Material Requirements Planning) is a specific type of material planning that is used to determine the amount and type of materials, components, and parts needed to meet production and customer demand. MRP determines the timing, amount, and location of materials needed and the lead times for ordering them.

What does MRP stand for in it? ›

Material Requirements Planning (MRP) is a standard supply planning system to help businesses, primarily product-based manufacturers, understand inventory requirements while balancing supply and demand.

How many types of MRP are there in SAP? ›

MRP Types can be categorized in to 2 major categories, namely Material Requirement planning and consumption based planning.

What does MRP mean in purchasing? ›

Material requirements planning (MRP) is a production planning, scheduling, and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, but it is possible to conduct MRP by hand as well.

What does MRP and SAP mean? ›

What is SAP MRP? The SAP MRP (Material Requirement Planning) is used to procure or produce the required material quantities on time for in-house purpose or for fulfilling customer demands. In manufacturing, the function of MRP is to guarantee material availability on time.

Why is MRP important? ›

MRP helps develop a production plan for finished goods by defining inventory requirements for components and raw materials. MRP assures that materials and components will be available when needed, minimizes inventory levels, reduces customer lead times, and improves customer satisfaction.

What are the three inputs to the MRP process? ›

The three basic inputs of an MRP system are the Master Production Schedule (MPS), Inventory Status File (ISF) and Bill of Materials (BOM).

What is the key to MRP? ›

The key to making MRP implementation work is to provide training and education for all affected employees. It is important early on to identify the key personnel whose power base will be affected by a new MRP system.

What are the uses of MRP? ›

Top 8 benefits of MRP systems for manufacturers
  • Inventory control. Inventory management is crucial to realising manufacturing efficiency. ...
  • Purchase planning. ...
  • Production planning. ...
  • Work scheduling. ...
  • Resource management. ...
  • Data management and documentation. ...
  • Economic purchasing. ...
  • Time-saving.
Jan 23, 2019

What are the steps in the MRP process? ›

SAP MRP is carried out in five steps:
  • Net Requirement Calculation.
  • Lot-Size Procedures / Calculation.
  • Procurement Types / Proposal.
  • Scheduling.
  • BOM Explosion.

What is MRP called in USA? ›

The manufacturer's suggested retail price (MSRP) is the price at which the manufacturer recommends retailers sell its product. The MSRP generally reflects all the manufacturing and selling costs associated with a product.

What is the difference between MRP and ERP? ›

The primary difference between ERP and MRP is that ERP systems help to plan and automate a variety of back-office business functions, whereas MRP systems focus on materials management. ERP directly touches accounting, manufacturing, supply chain, customer management, quality, processes and planning.

What is the difference between MRP and DRP? ›

MRP, which meets dependent demand, is based on requirements to produce a product. DRP determines the number of finished goods to be sent to each distribution center. DRP depends on actual demand signals, such as customer orders, and translates them into purchase orders.

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