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Planning with Final Assembly

I learn this planning strategy from SAP library and I have some quetstion, could any experts clarify them in a detailed way? Thanks in advance.

In strategy 40, the first step is to put the planned independent requirements into finished product level. so the where does planned independent requirements coming from? sales forecast?

In this strategy also mentioned consumption mode, when a sales order is received, if PIR could cover sales order, it would be a backward consumption, if not, it would be forward consumption. Is my understanding correct?

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  • Posted on Jun 11, 2014 at 05:03 AM

    Hello,

    Did you see below links for detailed explanation about 40 Planning strategy.

    How Strategy 40 - Planning with Final Assembly Works

    http://www.erpgreat.com/pp008.htm

    Br

    KK

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  • Posted on Jun 11, 2014 at 05:04 AM

    Hi Jason,

    you can create planned independent requirements through transaction MD61 here you can mention requirement type for example planning with Final assembly. please check and confirm. thanks

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 11, 2014 at 05:50 AM

    Hi,


    Q: where does planned independent requirements coming from? sales forecast?


    It depends on organizations way of determining the forecast quantity. Yes it may be the sales forecast also.


    Once it is determined then business users can enter materials with respective required quantities into MD61 transaction ( as Planned Independent Requirements ).


    Q: In this strategy also mentioned consumption mode, when a sales order is received, if PIR could cover sales order, it would be a backward consumption, if not, it would be forward consumption. Is my understanding correct?


    Yes your understanding is correct. For more details and example, you can refer the links suggested by Mr. Kiran Kumar.


    Regards,

    Narresh

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 11, 2014 at 10:30 AM

    Tian,

    In this strategy also mentioned consumption mode, when a sales order is received, if PIR could cover sales order, it would be a backward consumption, if not, it would be forward consumption. Is my understanding correct?

    No. The direction of consumption is independent of Strategy. You can use any one of the four standard consumption modes

    Backward consumption only

    Backward/forward consumption

    Forward consumption only

    Forward/backward consumption

    with any strategy that uses consumption.

    The actual direction that a sales order consumes the PIR is dependent upon the consumption mode selected and the actual values of the sales order and of the unconsumed forecasts.

    Consumption Strategies and Logic - Demand Management (PP-MP-DEM) - SAP Library

    Best Regards,

    DB49

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  • Posted on Jun 11, 2014 at 10:52 AM
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  • Posted on Jun 11, 2014 at 11:17 AM

    Hi Tian,

    1. Idependent Requiremets For the Sales Order Can Come From Any sourece Like SOP or Forecsting Based MRP, OR Manualy Entering PIR intoMD61.

    2. This Also have options Lie What ever the Consumption Mode that we will Give in the Material Master MRP 3 view based on that PIR Consumption will Be happened.

    Regards,

    Venkat.

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