Make to stock & Make to order

[Former Member]

Hai Friends,

I am dealing with one finished product called "FIN_01".

For that product i am dealing with both strategy Make to order & Make to stock.

Assume that for this month , i have a got a requirement from customer for product "FIN_01" about 1500 quanity and also i have made a plan for this month (SOP) for product "FIN_01" about 3000 quantity.

Now i wants to run MRP (MD02). Is my MRP will plan for both requirements ( means 1500 + 3000=4500)?

What is the best way to plan for the requirements?

Thanks

Senthil

[rmazzali · Accepted solution]

you cannot deal with a MTO and plan like a MTS, and even it makes not sense.

Use the Assembly to Order so that you plan as MTS in the lower levels of the BOM and then the MTO sales order create production orders that use the scheduled components.

regards

Roberto

pls. reard if helpful

[Former Member · Accepted solution]

Hi Roberto,

Could u explain me in detail about "Assemble to order"? (regarding combining MTO & MTS reqirements)

"y<b>ou cannot deal with a MTO and plan like a MTS, and even it makes not sense.

Use the Assembly to Order so that you plan as MTS in the lower levels of the BOM and then the MTO sales order create production orders that use the scheduled components.</b>"

Which strategy group should i use?

Your help will be very much appreciated.

Thanks

Senthil

[rmazzali · Accepted solution]

HI Senthil, I'm not a PP guy so I cannot suggest you exactly the configuration BUT, the logic is to work with indipendend requirements on BOM lower levels, and the use the MTO only for the final assembly, eg. the production order is MTO for the finished goods but the pieces to make the finished good are managed as Stock parts.

roberto

pls. reward if helpful

[Former Member · Accepted solution]

Hi Roberto,

What do u mean is,

In Material Master, for finished goods, manitain strategy group as "20" (Make to order), & for Semi finished goods( BOM items) maintain strategy group as "10"(make to stock).

And create Planned independent requirements for BOM items & execute MRP for BOM items in MD03 (Single item, Single level) and keep stock of BOM items.

This is what u mean know...

Thanks

Senthil

[rmazzali · Accepted solution]

Yes you are right !

But I think strategy 41 would be more appropriate.

Roberto

[Former Member · Accepted solution]

Hi Roberto,

You are advising to select strategy group "41" (Planning with final assembly with make to order) instead of "20" (make to order) for my finished goods. Is it know?

Is it correct to select "10"(make to stock prod) for my BOM items?

Thanks

Senthil

[rmazzali · Accepted solution]

yes I meant strategy group "41" (Planning with final assembly with make to order).

You can use startegy "10"(make to stock prod) for BOM items but you need a way to plan them based on some way (indipendent requirements for example).

reward points if helpful, pls.

Roberto

[Former Member · Accepted solution]

Hi Robertto,

I am trying with "41" for my finished goods. Under this strategy group "41", The main strategy is 40( planning with final assembly) & the secondary strategy is 20 (make to order), 50 (planning with out final assembly).

For Strategy group "41' , what will be suitable Recquirement class & requirement type for sale order processing? (in t.code OVZG, OVZH)

Thanks

Senthil

[Former Member]

Hi

You can use combined strategies to plan for the material requirement.

Please maintain this in spro if not maintained

stratgey

strategy group

assign mrp group to strategy

maintain material masters with mrp fields

MRP time fence

kindly get in touch if it is not working

hope this is of some use

regards

Prakash

[Former Member]

Hi,

I have done , what u ahve said. If i combine both, while running MRP (MD02), Is sytem will consider both requirements (means 1500+3000=4500)?

What about Planned Independent requirement?

In which case this will be useful?

Thanks

Senthil

[rmazzali]

Planned Independent requirements cannot be consumed by MTO requirements

Roberto

[Former Member]

You have to understand that MTO requirements and MTS planned requirements (for the same material) are independent. While both appear in the same stock/requirements overview for the plant and material, MTO requirements are tied to a customer order, so procurement elements for that order may only be used for that order. Conversely, MTS procurement elements may be used for any order that does not use a MTO requirement class.

So you can have a production order to produce 1500 specifically for a sales order (MTO) and at the same time have another production order to produce 3000 into general stock. However, the two are not interchangeable. Goods receipts for the 1500 will post into sales order stock, while goods receipts for the 3000 will post into general unrestricted stock.

Hope this helps.

- Otto

[Former Member]

Him Otto,

So..i have to run MRP (t.code MD50-Make to order planning-multi level) for MTO requirements & MRP (MD02) for MTS requirements seperately. Is it so?

Could u please explain me about Planned independent requirements? What does it mean? When i have to use this concept?

Thanks

Senthil

[Former Member]

Hi Roberto,

What do u mean by Planned independent req (PIRs)can not be consumed by MTO. I ahve created (PIRs) in t.code MD61 and rum MRP (in MD02) and produced & stocked in unrestricted use. Now i can use this stock to any sale order know.

Please clarify..

Thanks

Senthil

[Former Member]

Senthil,

I have not seen where separate MRP runs are required for MTO and MTS. In my experience, we use assembly order processing, where the finished good is MTO, but the components that make it up are MTS. We run MRP nightly at the plant level with MD01.

Planned independent requirements are those that you create based on information other than sales order requirements. They can be based on a material forecast or a sales plan. They are not tied to sales at all.

- Otto

[Former Member]

Hi Otto,

As you said, we will go for strategy group "40" (Planning with final assmbly). Is Strategy group "40" will take care of both requirements of MTO & MTS?

Please explain me with some example?

Your help will be very much appreciated.

Thanks

Senthil

[Former Member]

Senthil,

We use a customized copy of strategy group 82 for finished materials and strategy group 70 for lower level materials.

This allows us to plan finished materials by customer order and semi-finished materials by dependant requirements.

This is not to say that you should use these same settings. I'm in the furniture industry, where MTO is appropriate because a sofa is upholstered for a particular customer order and cannot be used anywhere else. Your business may not use the same model.

The proper selection and use of MRP strategy takes more analysis than I can provide over this forum. So I can describe how certain configuration settings work, but I cannot tell you if they're appropriate for your business model.

Good luck,

Otto