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Former Member

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

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

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1 Answer

  • Best Answer
    Jul 12, 2017 at 11:06 AM

    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

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