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PP Issue in choosing the correct strategy for implementation.

Feb 09, 2017 at 07:30 AM


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Dear All,

This is my first implementation and i need all your guidance for this. Our client is manufacturing gaskets for automobiles. They produce gaskets based on sales order and also based on Forecast. So literally they have MTO and MTS scenario. So we planned to choose strategy 40 which will combine both(Correct me if am wrong). When coming to product costing, if its MTS scenario product costing is based on Production order and if MTO scenario product costing is based on sales order. But here we are combining both strategies,so product costing will be based on what..?

Kindly please correct me and suggest which one will be right and will help in a simple smooth process without confusions and how will it reflect in product costing.

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2 Answers

Best Answer
Caetano Almeida
Feb 09, 2017 at 02:55 PM


You can combine two different planning strategies, such as 40 for MST and 20 for MTO. See the blog below for details:



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Hello Caetano,

Thank you for your reply. So as mentioned in the link, i'll combine both the strategies 40 and 20 into a single strategy group say Z1. So here i need a small clarification for my understanding.

1) For example for a FG, both sales order and PIR together we'll club together the quantity and run mrp in MD02 (or) for sales order separately in MD50 and PIR in MD02 ??

2) And since we are combining both strategies, costing will be based on sales order or production order..?

3) Strategy 40 itself is Planning with Final assembly and we plan planned independent requirements for finished product in demand planning and incoming sales order consume these planned independent requirement in strategy 40, so why should we combine both strategies to create a new one,as already strategy 40 satisfies us right?

Correct me if am wrong.

Thanks in advance.


Here are the answers to your questions

1) You don't need to run MD50. When you plant this material in MD02 or during the background MRP execution the sales order will also be planned. You only need to use MD50 when you want to ensure that all the requirements linked to the sales order stock will be planned separately;

2) Costing will depend on the settlement rule defined for your production orders;

3) You can use strategy 40 only, but it is not a MTO strategy, since the sales order is not planned separately. You only need to combine both strategies if you want to also use the MTO strategy, where the sales order is planned separately on the sales order special stock.



Hello Caetano,

Now its clear for me.

Thanks a lot for your reply and clearing my clarifications.

Mangesh Patil Feb 09, 2017 at 10:13 AM

Planning Strategy 40 is correct as the production of based on forecast and sale order.

Sale order will consume PIR/forecast.

Product costing will be on the material ( MTS), not based on sale order(MTO).

Sale order will not effect Product costing for Planning Strategy 40.

Before the start of Production make sure material is product costing is completed.

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