ATO- Strategy 40, 50

[Former Member]

Hi, pls clear my doubt. I think that in strategy 40 (mts), all the subassemblies are manufactured without s/o, and upon receiving the order the final assembly will takes place. where as in strategy 50 (mto), process is same as above mentioned and in addition there will be value addition activity or operation will be done. in that case shall i consider that 40, 50 strategies are for ATO? Do we have seperate strategies for ATO, If so wht will be the difference between both?

[Former Member · Accepted solution]

Hi,

Planning strategy 40 without sales order, based on the forecast we are producing the FERT material. Planning strategy 50, we will produce till HALB level. Once we get the sales order, the FERT material planned order will be allowed to convert as production order. Without sales order the FERT planned order can't be convert to production order.

Regards,

V. Suresh

[Former Member]

hi,

while in strategy 40, the finished product can be produced before receipt of SO, in strategy 50 only assemblies can be produced upto the 2nd last level and for final assembly SO receipt is must.