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Demand management (PIR) or Scheduling agreement? please chime in

Active Participant
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we have one DC and one vendor.

Vendor - They produce the finish material for us

DC - It has forecast for finished material and sales orders are placed on this DC. we send 1 month of forecast to vendor (in an email or spreadsheet) and they send us their 1 week of fixed production schedule back to us. based on the 1 week fixed schedule we send purchase orders to the vendor and receive the product into the DC.

Question - where is the best place to store the 1 week firm schedule for materials (that the vendor sends us) in our system? I was thinking either store them as

1. PIR's in the system for materials. MRP runs and creates PR's/PO's against the vendor. Sales orders come and consume forecast and use strategy 40 for materials

2. schedule agreement . MRP runs and delivery schedule/schedule lines to vendor and we receive against these open schedule lines. But in this case I am creating recept elemnts without a demand. ofcourse eventually a demand will come in form of sales orders..

which way is better? or is there any other approach that I am missing

Active Participant
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Any help is appreciated

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