Lesson 2 of 5
Planning strategies
9 min
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A planning strategy answers one question: how do forecasts and customer orders work together for this product? SAP Learning describes strategies as numeric codes for approaches to production planning, grouped into make-to-stock, subassembly planning and make-to-order. The strategy is selected through the strategy group in the MRP 3 view of the product, per plant.
| Strategy | Category | PIRs? | Sales orders | Typical use |
|---|---|---|---|---|
| 10 Net requirements planning | Make-to-stock | Yes | Not planning-relevant; served from stock; PIRs reduced at goods issue | Mass production, low-cost items |
| 40 Planning with final assembly | Make-to-stock | Yes | Consume PIRs; excess over PIRs is planned too | Forecastable finished products with customer orders |
| 50 Planning without final assembly | Subassembly planning | Yes (for the finished product) | Trigger final assembly; components ready in advance | Short delivery time, final assembly varies |
| 20 Make-to-order | Make-to-order | No | Each order planned and stocked separately | Customer-specific products |
Make-to-stock: 10 and 40
With strategy 10, the demand program is set up without reference to sales orders. SAP Learning describes the behavior: sales orders are filled from stock and do not enter planning, and PIRs are reduced when goods are issued for the delivery, oldest first. It suits products sold from the shelf in volume, where individual orders do not change the plan.
Strategy 40, planning with final assembly, is the most common make-to-stock strategy for products with real customer orders. PIRs trigger procurement and production ahead of demand. Incoming sales orders consume the PIRs, so demand is not counted twice. If customer orders exceed the forecast, the next MRP run plans the extra quantity. The availability check can be run in the sales order. Contoso uses strategy group 40 for CMC-ALT-100 in plant 1710.
Make-to-order: 20 and 50
With strategy 20, nothing is produced until a sales order arrives, and PIRs are not used for the finished product. SAP Learning explains that each sales order is planned in its own individual customer segment, lot-for-lot, and the resulting stock belongs to that order and cannot be used for another. Costs can be tracked per sales order item.
Strategy 50, planning without final assembly, sits in between. PIRs for the finished product create planned orders of a special type (VP) that plan components and assemblies but cannot be converted into production orders. When the sales order arrives, it consumes the PIR and final assembly starts. The components are already there, so lead time shrinks to final assembly time.
How the strategy is chosen
The strategy group in MRP 3 points to a main strategy (and optionally alternatives). The strategy determines the requirements types for PIRs and sales orders, and through them the requirements classes that control consumption, availability check and whether a separate segment is used. An MRP group can also carry consumption settings; per SAP Learning, if both exist, the strategy group values win. For assemblies, the individual/collective indicator in MRP 4 decides whether they are planned per sales order or collectively.
What would you do?
Maria wants fleet orders for the standard alternator delivered from stock, but planners want each order to reduce the forecast so they do not over-produce. Which strategy fits best?
- The strategy group in MRP 3 selects the planning strategy per product and plant.
- Strategy 10: orders served from stock, PIRs reduced at goods issue. Strategy 40: orders consume PIRs.
- Strategy 20: no PIRs; each sales order planned and stocked in its own segment.
- Strategy 50: VP planned orders prepare components; final assembly starts with the sales order.
Check your understanding · not graded
Lesson check
1. Where is the strategy group maintained?
2. Under strategy 10, when are PIRs reduced?
3. What is special about VP planned orders under strategy 50?
4. Under strategy 20, where is a sales order planned?