Can we use planning strategy 40 for MTO scenario or we can't.

[Former Member]

Hi PP gurus,

Actually in my previous company they are using Planning Strategy 40 for MTO scenario, But when I tried to check in blogs people written its as 40 strategy comes under Make To Stock Scenario

Is it right way to use strategy 40 in MTO , If not Please tell me the Pros and Cons of using this strategy in MTO

Please help me with this I'm bit confused

Thanks in Advance

Hariteja Bandla

[Raja_S_Reddy_B · Accepted solution]

Hi Hari,

As mentioned by you, In general, Strategy 40 is considered , as one of MTS Scenario.

Point 1:
In fact, this( Strategy 40) has a feature, to respond for the incoming sales Orders, which means, if you receive more quantity of the Sales Orders, than the Independent Requirement, then the System will generate additional Planned Orders, to fulfill for the Sales Order requirements

Point 2 :

This Strategy(40) is not considered as the MTO ( Make to Order), because, in this case Planned Orders/Production Orders, don't have nay ref. of the sales Orders & also, Stock will be posted to Unrestricted Stock ( Not specific to any Order)

Point 3 :

If you want to have the Ref. of the Sales Orders, in your Production Orders, Its better to proceed with the other make to Order Strategies Like, 20, 50, 52.
Hope, this will be some useful info. Kindly let me know, for any further assistance required

Best Regards : Raja..Reddy

[Former Member · Accepted solution]

Hi Bannuru

Thanks for the quick response

Yeah you are right in my previous organisation there is no track of sales order in production order due to this strategy I think and Stock will be posted on WBS Element because PP is integrated with PS over there

Finally You mean to say using Strategy 40 in MTO is not the standard process according to SAP. Am I right

Regards,

Hariteja Bandla

[Raja_S_Reddy_B · Accepted solution]

Hi Hari,

Yes, You are Correct. Its not the Pure MTO Strategy, it will only respond for the incoming sales orders

Thanks & Regards : Raja...Reddy