Multi-Level Subcontracting (Example) 

You can also use MRP areas to plan multi-level subcontracting.

Example Data

You order assembly 1 at subcontractor X. Subcontractor X needs assembly 2 for the production, which subcontractor X obtains from subcontractor Z. Subcontractor Z needs the component 3 to be provided, which you provide directly.

Prerequisites

  • You have entered the special procurement key for subcontracting in the material master of the assembly 1 that the subcontractor produces.
  • You have created a source list entry for the assembly 1 that the subcontractor produces. In this, you have entered the subcontractor as a fixed vendor and have set the indicator 1 for relevant to MRP in the MRP field.
  • You have defined a subcontractor type of MRP area, in which you have entered subcontractor X. You have assigned this MRP area to the material assembly 2, by creating an MRP area segment for subcontractor X in the material master for assembly 2. You have entered the special procurement key for subcontracting in the MRP data for the MRP area segment.
  • You have defined an additional subcontractor type of MRP area, in which you have entered subcontractor Z. You have assigned this MRP area to the component to be provided 3, by creating an MRP area segment for subcontractor Z in the material master for component to be provided 3. You have entered a special procurement key for Stock Transfer from Plant to MRP Area in the MRP area segment.

Planning Procedure

During the planning run, the system determines subcontractor X as the vendor for assembly 1 using the source list entry and creates a subcontract purchase requisition for assembly 1. Subsequently, the bill of material for assembly 1 is exploded. The dependent requirements of assembly 2 are assigned to the MRP area of subcontractor X.

The system generates a subcontractor-planned order (or purchase requisition or delivery schedule) to cover the dependent requirements for assembly 2. The system then explodes the bill of material for assembly 2 and generates dependent requirements for the component to be provided 3. These dependent requirements are assigned to the MRP area of subcontractor Z.

Due to the special procurement key in the MRP area segment of the component to be provided 3, the system determines that the component is to be procured using stock transfer from the plant to the MRP area of subcontractor Z.