Batch Expiration in MRP

I've come across the problem of batch expiration many times. It is typical for Life Sciences, Consumer Products, Food and Beverage Companies to Batch Manage and Shelf Life manage their materials and products.

During  Material Requirements Planning or Master Production Scheduling (both  Standard and Long-Term Planning), SAP R/3 does not discount the net available batch quantities that  are expiring out into the future (and instead considers them as  available depending on the Inventory Stock categories configured for the  checking rule for MRP). This is a big gap.

Then I saw a solution brief from Vija Pisipaty (IT Sapiens) which addresses the problem in an add-on tool (without any source code modification)  with the following features to overcome the gap:

·       The  solution dynamically takes into consideration the Expiration Date (or any  Batch Date that you desire as key date) of balance quantity of batches  in Inventory after consumption/netting off.
·       The system  calculates the quantity of a batch that will expire on the expiration  date, or that will need to be discounted based on Key date of batch  (e.g. Use By/Last Ship Date).
·       The system reduces the 'Net  Available Material Inventory' per requirement date, by the net quantity  of the batch that whose expiration/key date is less than the requirement  date of the requirement.
·       Batch Numbers of the  expiring/discounted batches and their respective quantities discounted  will be visible in the MRP List and Stock Requirements List.
·       A  custom configuration task is provided whereby the entire functionality  can be turned ON/OFF per "Plant-Material Type-Division" combination or by another combination you desire.
·       The subject functionality scope includes the following Transactions:
o   MD01 - Total Planning (Online) MRP
o   MD02 - Single Item, Multi Level MRP
o   MD03 - Single Item, Single Level MRP
o   MD04 - Stock/Requirements List
o   MD05 - Individual Display of MRP List
o   MD06 - Collective Display of MRP List
o   MD07 - Collective Stock/Requirements List
o   MD41 - Single Item Multi Level MPS
o   MD42 - Single Item Single Level MPS
o   MD43 - Single Item Interactive MPS
o   MDBT - Total Planning (Background Run) MRP
o   MDBS - Total Planning (Background Run) MPS
o   Long term Planiing related Txns - MS01, MS02, MS03, MSBT, MS50, MS05, MS06, MS07

The functionality caters to Unrestricted Stock, Customer Stock, Vendor Consignment Stock and Subcontractor Stock. The solution can also be extended to project Stock. I really like this solution and wanted to spread the word about it, since it represents a big problem for anyone managing batches and planning these in SAP.

please contact Vijay at IT Sapiens directly for any further documentation...mentation...