Can you explain the difference between MRP (Material Requirements Planning) and MPS (Master Production Scheduling) in SAP PP?

Difference Between MRP and MPS in SAP PP

In SAP PP, Material Requirements Planning (MRP) and Master Production Scheduling (MPS) are key processes that help in managing the production and material planning of a company. Here is a brief explanation of the difference between MRP and MPS in SAP PP:

Material Requirements Planning (MRP)

MRP is a production planning and inventory control system used to manage and plan the materials required for manufacturing. It calculates the required quantities of materials based on the production schedule, available inventory, and lead times. MRP helps in ensuring that the right materials are available at the right time for production.

Master Production Scheduling (MPS)

MPS is a strategic planning tool that helps in determining the production schedule for finished goods based on the sales forecast, production capacity, and inventory levels. MPS involves creating a detailed plan for the production of finished goods over a specific period, considering various factors such as customer demand and production constraints.

While MRP focuses on the detailed planning and procurement of materials needed for production, MPS deals with the high-level planning of production schedules for finished goods. Both MRP and MPS are essential components of the production planning process in SAP PP, working together to ensure efficient production and inventory management.