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Strategy Group S5 B6 & 70 exact operational definitions

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About strategy groups S5, B6 and 70, I would like to deeply understand the language and underlying algorithm. I will mix questions and assumptions, please comment on them.

B6 - Planning w/o final assy-MTO@STD w/o RA

S5 - Planning w/o final assy-MTO@SlsOdCost

70 - Planning at assembly level

1) What does planning exactly mean here? Is it the same for all three?

2) What does Planning w/o final assy-MTO exactly mean. Am I correct in combination with strategy group 70 for sub assemblies this is the equivalent of the APICS Strategy Assemble to Order?

3) What does the acronym @STD w/o RA exactly stand for?

4) What does the acronym @SlsOdCost exactly stand for?

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Product and Topic Expert
Product and Topic Expert

Dear fdo1958

Here are my comments for your questions:

1) The meaning of Planning is exactly the same for the 3 different Strategy Groups: B6 - Planning w/o final assy-MTO@STD w/o RA, S5 - Planning w/o final assy-MTO@SlsOdCost and 70 - Planning at assembly level. It means the Planning for the Manufacturing of the Material in the Plant.

2) The meaning for "Planning w/o final assy-MTO" is that the Manufacturing of the Semi Finished Products is planned and performed in advance, with a Make to Stock Strategy. Then, the manufacturing of the Finished Product will be triggered with the receipt of the Sales Order, using Raw Materials and Semi Finished Products already Manufactured.

3) The meaning of "@STD w/o RA" for Strategy "B6 - Planning w/o final assy-MTO@STD w/o RA" means that there is no Valuation Strategy associated.

4) The meaning of "@SlsOdCost" for Strategy "S5 - Planning w/o final assy-MTO@SlsOdCost" means that the cost of the Production Order considers the Cost from the Sales Order. This is used for Finished Materials with Advanced Variant Configuration, for the case that every Sales Order has a different Cost depending on the Definitions of features of the Finished Product.


Juliano Romanato.

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Thank you Juliano, but ..... even more precise.

1) What does planning mean here .... generating planned production & purchasing orders based on requirements through MRP?

2) Clear, thank you.So that is equivalent to Assemble To Order.

3) What does RA stand for?

4) Could you explain this in more detail? Production order considers cost of the sales order ... meaning stating a target cost?