The Importance Of Planning For Materials For Production Logistics

1319 Words Mar 9th, 2016 null Page
1b) Provide a one-two sentence summary of what the entire exercise was about. This SAP exercise revolves around the production logistics, emphasizing the regions involved in manufacturing the kites as well as the processes and steps required to do so. It portrays the significance of planning for materials in the process of procurement as it is essential to have the correct amount of materials required in order to finish the product. Through the exercise we can learn how to make planned orders using the bill of materials, converting planned order into orders for production, then creating a receipt and receiving the goods.

•PP07 (MRP): During this step of the process, material planning is in processes as the availability and requirement for the material to produce kites is assessed. The material in that is already in stock is analysed and the amount required to produce the final product i.e. the run MRP stage. In this stage the trigger is the already existing bills of material, sales order, proper schedule, and routing plan. Therefore, the step is completed by the MRP controller, who supervises the MRP runs. There are no physical or money flows in this stage.
•PP08 (Display stock/requirements): In this step of the production process, by displaying the stock/requirement list the planned order is created. It indicates the amount of materials that are currently on hand and the changes according to the going on transactions. This is similar to a purchase requisition however…

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