Make to Stock Strategies - Strategy 11

[former_member184574]

Introduction:

Planning Strategy '11' is one of the most widely used and one of the important strategy of the MTS strategies. This strategy is also called as Gross Requirements Planning.

Strategy ‘11’ is particularly useful for make-to-stock scenarios and the sales orders have no effect in the production with out considering the plant stock in to consideration . This strategy is particularly useful if you need to produce the Product, regardless of whether you have stock or not. The production is based on production plans transferred from SOP to demand management or with manually entered PIR’s.

Few important features of this strategy are:

• Plant stock and Sales Order requirements do not affect the production.
• No concept of PIR consumption through customer requirements, since customer requirement is not relevant for make-to-stock production.
• PIR reduction happens during Goods receipt of the Production Order.

Master Data:

You need to maintain the following master data for the finished product:

• Maintain strategy group 11 on the MRP screen.
• Set the Mixed MRP indicator to 2 on the MRP screen.
• Maintain the item category group (for example, NORM) on the Sales Organization screen.
• Maintain the Availability check field so that you perform an availability check without the replenishment lead time (checking group 02 in the standard system).

Process Flow :

Creation of Planned independent requirements (PIR's) for the production plan (MD61)

MRP Run .(MD02)

Procurement requisitions are created in the MRP run

Planned order conversion to Production Order

Production Execution and goods receipt for the order, the stock/requirements list display (MD04)

Reduction of Planned Independent Requirements during Goods Receipt of the Production Order

Sale order creation (VA01)

Goods Issue for Delivery (VLO1N)

Detailed Process Flow :

Initial situation of material with stock 100

Creation of Planned independent requirements (PIR's) through  MD61

Now save

Carry out MRP planning Run...with MD02

Planned Orders created for the material.. here it can be observed that plant stock is not considered in net requirement calculation...

Now convert the first planned order to production order and release

Complete Goods Issue, Confirmation and Goods Receipt of the Order......after the goods receipt of the Production Order stock gets increased by 100 and First PIR gets consumed....

then save

Creation of sale order for the Product....

Now it can be observed that Sale order does not have any influence on the planning situation it will be on display only as shown below...

Now Goods delivery against the sale order through VL01N....

Now final situation of the material....

Thanks

Kumar

[former_member184666]

Hi Kumar,

Nicely explained. You can also add where this type of strategy is used. For Eg:Cement Industries use this type of strategy where they do not consider the available stock.

Thanks & Regards,

Ramagiri

[former_member184574]

Hi,

Thanks for your compliment...

Regards

Kumar

[former_member193869]

Hi Kumar,

Informative and great explanation. This Doc- would be helpful for young consultants like  me .Expecting few more Doc's in future.

Thanks & Regards

Rakesh

[former_member305045]

Hi Kumar,

 

Thank you so much for this blog.

I have a question, will this work the same way for process orders as well ?

(in the blog you have demonstrated with production order)

 

Thanks,

Rajan.

[imranpathan]

but for SFG it will consider system stock into consideration what to do i want gross quantities of sfg also depending upon PIR of fg without considering sfg stock present in system.

[eddyizaguirre3]

Veeery Good.

[former_member227350]

very good

[hyigitgur]

Thank you for your document,

How did you consume the Independent Reqs after confirmed Prod. Order. I tried same processes and I am still facing Independent Reqs. after confirmation. I added the configuration of Req. Class (102) of BSF. Maybe could be helpful.

Also I reviewed other documents which are explained Strategy 11. They are facing same thing too.

Could you explain this issue?

Config of Req Class

Thanks in advance.