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Former Member
May 22, 2014 at 02:26 PM

Strategy 70 and 74

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Hi experts,

I have a question regarding strategy 70 and 74.

Strategy 74 is termed as planning without final assembly at assembly level and strategy 70 is termed as planning at assembly level.

Accordingly, Mixed MRP indicator for strategy 70 is ‘sub assembly planning with final assembly’ and for strategy 74, it is ‘sub assembly planning without final assembly’

In both the cases, planning is done at sub assembly level and hence PIR is created at sub assembly level. In both the cases, sales order received for the FERT is used to create planned order which in turn is converted to production order. In both the cases, creation of production order for FERT consumes PIR of sub assembly.

In the case of strategy 74, non convertible planned orders are created against the PIR created for the sub assembly. After the creation of production order for FERT, those non convertible planned orders are consumed and convertible planned orders are created (based on the quantity of FERT to be produced).

In the case of strategy 70, convertible planned orders are created against the PIR created for the sub assembly. So, I can immediately produce the sub assembly without waiting for the production order of FERT.

My question

Could you please let me know the relevance of the phrases ‘with final assembly’ and ‘without final assembly’ associated with strategies 70 and 74?

Thank you very much for your time.

Thanks and regards,

Sethuraman Atisivan