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MRP 4 view in material master is for material that are listed as BOM of product or material or for material defined as dependent requirement. Dependent requirement is affected when there are change in the Planned Independent Requirement (PIR). When you choose 1 parameter,material requirements to buy will be generated when a customer order was entered under SD module (VA01). On the other hand, parameter 2 like parameter 1 it is used in the BOM explosion of a product but in sales forecast basis (MD61). To simplify, if material is unique or not common, with high value, with shelf life or short lead time, order proposals will be generated only during a customer order was received and entered in the system. Choose parameter 1, you have better control to manage the stocks and values, parameter 2 is the reverse, when a material that is commonly used in many products that your company is producing. and when you planned product via forecast or sales plan basis then parameter 2 is your option to choose, if works when sales forecast of a product where the dependent requirement or material were being used it propose a buying proposals for the material requirement even though no receive or confirm customer order yet.
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