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What is Planning Run in SAP?

Published in SAP MRP 4 mins read

The Planning Run in SAP is a critical process, primarily used for Material Requirements Planning (MRP). It's a systematic function within SAP Production Planning (PP) that ensures the availability of materials and production resources to meet demand, optimizing inventory levels and streamlining the manufacturing process.

Understanding the Core Function

At its heart, the SAP Planning Run calculates the required quantities and dates for materials based on existing and forecasted demand. Based on PP parameters, the system creates receipt elements (such as Planned Orders and Purchase Requisitions) against demand and/or sales orders. This process takes into account various factors like current stock, open purchase orders, production orders, and master data to identify potential material shortages or excesses. It operates as a distinct and integral section within SAP PP.

How the Planning Run Works

The MRP Planning Run systematically evaluates the supply and demand situation for all relevant materials. It performs a multi-level Bill of Material (BOM) explosion, breaking down the requirements for finished products into requirements for their sub-assemblies and raw materials.

Here's a breakdown of its key steps:

  • Net Requirements Calculation: Determines the actual material needs by comparing existing stock and scheduled receipts against gross requirements (demand).
  • Lot Size Calculation: Groups individual requirements into optimal order quantities based on configured lot-sizing procedures (e.g., fixed lot size, lot-for-lot, period lot size).
  • Scheduling: Calculates start and end dates for planned orders and purchase requisitions, considering lead times from material master data.
  • BOM Explosion: For manufactured items, the system recursively breaks down the BOM to determine the requirements for components at each level.

Key Inputs and Outputs

The effectiveness of the Planning Run hinges on accurate master data and transactional information.

Key Inputs:

  • Demand:
    • Sales Orders
    • Planned Independent Requirements (PIRs) from Sales and Operations Planning (SOP)
    • Reservations
  • Supply:
    • Current Stock Levels
    • Purchase Orders
    • Production Orders
    • Schedule Agreements
  • Master Data:
    • Material Master: Contains crucial planning parameters (MRP type, lot size, lead times, safety stock).
    • Bill of Material (BOM): Defines the components needed to manufacture a product.
    • Routing: Specifies the sequence of operations, work centers, and production times.
    • Work Center: Defines available capacities.

Key Outputs:

Output Element Description
Planned Orders Internal requests for the production or procurement of a material.
Purchase Requisitions Requests to the purchasing department to procure materials externally.
Schedule Lines For materials procured via scheduling agreements.
Exception Messages Alerts the planner to potential issues (e.g., late receipts, quantity discrepancies).
Capacity Requirements Details the load on work centers, helping identify bottlenecks.

Types of Planning Runs

SAP offers different types of Planning Runs to suit various business needs:

  • Net Change Planning (MD02/MD03): This is the most frequently used planning run. It only considers materials that have experienced changes relevant to MRP since the last planning run. It's efficient for day-to-day operations.
    • Example: A new sales order comes in, or a production order is confirmed; only affected materials are re-planned.
  • Net Change Planning in the Planning Horizon (MD02/MD03): Similar to net change, but restricts the planning to a defined planning horizon. This is useful for stable short-term planning while still reacting to changes.
  • Regenerative Planning (MD01): This is a comprehensive planning run that plans all MRP-relevant materials in the system, regardless of whether changes have occurred. It's resource-intensive and typically run less frequently, often overnight or weekly.
    • Example: A complete system refresh, or a major change in planning strategy might warrant a regenerative run.

Running the Planning Run in SAP

The Planning Run can be executed via specific transaction codes in SAP:

  • MD01: For regenerative planning (all materials).
  • MD02: For single-item, multi-level planning (plans a specific material and its components).
  • MD03: For single-item, single-level planning (plans only a specific material, not its components).
  • MD04: The Stock/Requirements List, used to view the results of the planning run and analyze material availability.
  • MD06: The MRP List, another report providing an overview of planning results, often used for post-processing.

Benefits of an Effective Planning Run

Implementing an effective Planning Run in SAP offers significant advantages:

  1. Optimized Inventory: Reduces excess stock and minimizes carrying costs while preventing shortages.
  2. Improved Production Scheduling: Provides clear production plans, enabling better utilization of resources and smoother operations.
  3. Enhanced Customer Service: Ensures materials are available to meet customer demands, leading to on-time deliveries.
  4. Better Decision-Making: Provides planners with real-time insights into material availability and potential issues through exception messages.
  5. Cost Reduction: Minimizes rush orders, production delays, and material obsolescence.

For further exploration of SAP MRP and its functionalities, the SAP Help Portal offers extensive documentation.