Understanding PRP

Project Requirements Planning is an option within the MRP/MPS Requirements Planning program (R3482) that you use to generate replenishment schedules for components that are used to produce a project item.

PRP recognizes the shippable items from the project as the supply of the end item and uses this supply to drive the demand for its components. Thus, the project supplies its own demand.

The dependent demand is generated by the bill of material (BOM) structure or by the work order parts list that is associated with the end items. Inventory that is acquired either by purchase order receipts or work order completions for these project-specific items should be used only for meeting the project's demand.

Project demand and supply is regarded as standalone or independent so that any additional demand or supply from forecasts, sales orders, work orders, or purchase orders on that end item does not interfere with the requirement from the project.