Article Credit(SAP PP Planning strategies) – Sudarshan Aghav
There are many Planning Strategies to choose from in SAP. It is anticipated that most of the strategies will be used at one time or another for at least one material. The strategies range from pure make-to-stock to pure make-to-order including many hybrid strategies. In most cases, the strategy will be associated with the finished item, however the strategy can also be associated with a Planning Material or an Assembly.
Planning Strategies define how Planned Independent Requirements (i.e. forecasts) and Customer Independent Requirements (i.e. sales orders) interact and become visible to manufacturing planning and the Planning Run (e.g. MPS and MRP). Additionally, they define whether Availability Checking is permitted and where costs are ultimately settled. There are many Planning Strategies representing many (but not all) combinations of the above.
SAP offers many Planning Strategies to choose from. Selecting the right Planning Strategy is critical for the successful balance between customer service, cycle time / inventory investment, and costs.
Master Data:
You need to maintain the following master data for the finished product:
Strategy Group 10: (Net Requirements Planning)
Strategy ‘10’ is particularly useful for pure make-to-stock scenarios. The production is based on production plans transferred via manually entered PIR’s. Strategy ‘10’ is also referred as ‘Net Requirements Planning’ and few important features of this strategy are:
- PIR reduction happens with Sales Order delivery.
- No concept of PIR consumption through customer requirements, since customer requirement is not relevant for pure make-to-stock production.
- Sales Order requirements do not affect the production.
The system finds requirement type as ‘LSF’ of the strategy 10.
In this example we create the PIR’s manually through MD61 transaction.
After running MRP, system generates planned orders to cater the requirements
Strategy Group 11: (Gross Requirements Planning)
Planning Strategy 11 is one of the most widely used and one of the important strategies of the Make-To-Stock Strategies. This strategy is also called as Gross Requirements Planning.
Important features of strategy 11:
- No concept of PIR consumption through customer requirements, since customer requirement is not relevant for make-to-stock production.
- Plant stock and Sales Order requirements do not affect the production.
- PIR reduction happens during Goods receipt of the Production Order.
You need to maintain the following master data for the finished product:
1) Maintain strategy group 11 on the MRP screen.
2) Set the Mixed MRP indicator to 2 on the MRP screen.
The system finds requirement type as ‘BSF’ of the strategy 11.
In this example we create the PIR’s manually through MD61 transaction.
After running MRP, system generates planned orders to cater the requirements
Strategy Group 40: (Planning with Final Assembly)
strategy 40, the main focus is on flexibility in reacting to customers’ demands. Production, including final assembly, is triggered by the planned independent requirements before the sales order is received. You plan the PIR for the finished product in Demand Management.
maintain the following master data for the finished product in the material master:
Consumption parameters to allow consumption of independent requirements. If no consumption parameters are maintained in the material master, the system uses default values are taken from the MRP group. To control consumption, you maintain a consumption mode as well as a consumption period.
The system finds requirement type as ‘VSF’ of the strategy 40. In this example we create the PIR’s manually through MD61 transaction.
After running MRP, system generates planned orders to cater the requirements
You can use the consumption mode to define in which direction incoming sales orders are to consume planned independent requirements on the time axis.
Available stock consider.
PIR getting consumed by the sales order.
Strategy Group 20: (Pure make to order)
Strategy 20 is the Pure make to order strategies in Demand Management. In this 20-strategy product is specifically manufactured for a sale order or customer order. There is no forecasting involved. Sale order or customer order will be the trigger point for production.
Maintain planning strategy 20 in the material master in MRP 3 view in as shown below.
There is a situation of material with 100 KG unrestricted stock. This stock is kept make the understanding of difference between unrestricted stock and sale order stock.
Now Put sale order for the product with VA02
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