Fixed pegging Versus Dynamic pegging with Timely receipts

[scm_09]

Hi Experts,

I understand the main difference between fixed and dynamic pegging. I have read in an oss note that fixed pegging will help you keep the receipt element as close to the requirement date..

When I read about Dynamic pegging with strategy "use timely receipts" also do the same thing but without having a hard pegging..

If my understanding is right, in what cases would people use fixed pegging when Dynamic pegging with Timely receipts option is giving you the same/similar functionality with more flexibility? am I missing something here??

[scm_09]

Any insight is appreciated

[Sasi2005]

Hi,

The main advantage of having a fixed pegging relationship, is its easy to trace which sales order is associated with which planned order and its stable and its easy to trace. Also when the relevant planned order is converted to production order this relationship is maintained thus its easier to provide customer confirmation dates and has stability. So I feel that in case of CTP kind of scenarios the fixed pegging has worked well as it gives some kind of stability in confirmation. In these scenarios I don't expect dynamic pegging to work well due to its inherent nature.

This is based on my experience.

Regards

Sasi

[scm_09]

Thanks again.. If I am using MTO strategy.. I will have that fixed relationship between SO and planned order already, right? So, in MTO scenario we don't need this fixed pegging?

[Sasi2005]

Hi,

In case of fixed pegging the below is the definition given in sap help "You use fixed pegging if you want to assign a stock or a receipt element to a requirement in a fixed way. Fixed pegging is retained, even after a document change.

Using fixed pegging has the following advantages:

• Stable confirmations

  When you use fixed pegging, the assignment of a sales order item to a receipt element remains stable. Moreover, the component assignments can be kept stable over multiple levels. In other words, components that are assigned to an order via fixed pegging cannot be consumed by other, competing orders. This means that it is easier to keep the confirmation date that you have given to your customer."

• So basically, as long as you there are no changes in demand e.g. sales order and its relevant quantities and you want the same receipt elements not to be allocated to something else the Fixed pegging works. If situations are very dynamic then its better not to go with Fixed pegging.

For more details i would suggest you to visit the below help link

https://help.sap.com/saphelp_scm700_ehp04/helpdata/en/a2/62af505f369e04e10000000a441470/content.htm?...

Hope this helps

Regards

Sasi

[scm_09]

Hi Sasi.. thanks for the reply.. yes I have gone through the help and also went through some oss notes.. below are my comments

1. If I do MTO setup, then anyway we will have link between sales order and production order..so what is the advantage of doing fixed pegging?

2. Now coming to dynamic pegging with timely receipts vs fixed pegging, I will ask my question with a figurative example in MTS scenario..

sales order 5678 req date is Jan 15, mrp ran created a receipt element 1234 for jan 14th. i have dynamic pegging with timely receipts turned on.. in this case 5678 is pegged to 1234.

Lets say I do a fix pegging between 5678 and 1234.. what advantage am I getting by doing fixed pegging over dynamic pegging with timely receipts? in both these cases I have my receipt element as close to my req element and satisfying my requirement..

could you explain with some example in where fixed pegging helps and dynamic pegging fails?