Predictive MRP (pMRP) in SAP S/4HANA for simulating Supply/Demand Scenarios : Useful in Inventory-Provision

Definition

Predictive Material Requirements Planning (pMRP) is a simulation tool in SAP S/4HANA (introduced in 1909 release, enhanced in later versions) that helps planners simulate future supply and demand situations without impacting live production data.

It’s not a replacement of classic MRP Live (MD01N), but rather a strategic, scenario-based planning tool.


🔑 Key Features

  1. Simulation-Based
    • Runs outside the operational MRP.
    • Doesn’t consume or change transactional data.
    • Lets you create “what-if” scenarios.
  2. Strategic Planning
    • Used to analyze future capacity needs (work centers, suppliers).
    • Helps in long-term material and resource planning.
  3. Simplified and Fast
    • Runs on HANA in-memory engine for high performance.
    • Designed for planners to quickly test different assumptions.
  4. Capacity Evaluation
    • pMRP highlights overloaded work centers or suppliers.
    • Helps decide where to shift demand or procure differently.
  5. Integration with Fiori Apps
    • Fiori app: “Schedule Predictive MRP”
    • Fiori app: “Process Predictive Material Requirements Planning Simulations”
    • Allows planners to create, run, and review simulations directly in a user-friendly UI.

📊 How Predictive MRP Works

  1. Input Data:
    • Current BOM, routing, planned independent requirements (PIRs), sales orders.
    • Master data from Material Master, Work Centers, Source Lists.
  2. Simulation Run:
    • Planner selects a horizon (e.g., next 6 months).
    • pMRP simulates demand propagation through BOM levels.
    • System calculates required materials and capacities.
  3. Review Results:
    • Fiori app displays pegging relationships (which demand consumes which supply).
    • Shows shortages, overloads, and feasibility.
    • Planner can adjust demand, capacity, or sourcing options.
  4. Decision Making:
    • Adjust demand forecasts.
    • Negotiate supplier capacity.
    • Plan for hiring/overtime.
    • Use results to refine operational MRP runs (MRP Live).

Difference Between MRP Live and Predictive MRP

FeatureMRP Live (MD01N)Predictive MRP (pMRP)
PurposeOperational planningSimulation / Strategic planning
Impact on DataCreates real planned orders, requisitionsOnly simulations (no impact)
SpeedOptimized for HANA, large data volumesEven faster (focused data sets)
HorizonShort to mid-termMid to long-term
Use CaseDay-to-day supply executionWhat-if capacity and supply-demand scenarios

🌟 Example Use Case

A company expects a new sales forecast of 20% higher demand for Product A in the next quarter.

  • Planner uses pMRP to simulate:
    • How much extra raw material will be needed.
    • Whether supplier X can handle the extra demand.
    • If internal work center capacity will get overloaded.
  • Based on results, planner negotiates supplier contracts or hires temporary labor before running actual MRP Live.

👉 In summary: Predictive MRP = Scenario Planning Tool in S/4HANA. It enables strategic, AI-ready, in-memory simulations to validate supply and capacity feasibility before committing changes in the operational MRP.


We can deep-dive into AI/ML enhances Predictive MRP (e.g., demand sensing, auto-buffer adjustments), since this connects directly to my earlier blogs related to inventory provisioning using AI

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