Difference / Application of Strategy Group 40 & 70 ?

[Former Member]

Dear Experts,

<b>Would like to clarify the difference between Strategy Group 40 & 70 ?</b>

<u><b>Currently :</b></u>

<b>(1)</b> All product not required Sales, are defaulted Strategy Group 70 (Planning at assembly level)

<b>(2a)</b> Subsequently, for any product / spares that require sales, we will manually change Strategy Group to 40 (Planning with final assembly)

<i><b>AND</b></i>

<b>(2b)</b> If forecast (represented by Independent Demand) is required, further setup is required for auto consumption of Independent Demand by Sales Order :

- Consumption mode = 2 (backward/forward consumption)

- Foward & backward consumption period = 999

<b>What would be the effect if we default all product to be Strategy Group 40</b> (as any product has potential to be spare parts), and if Independent Demand is require then we will apply (2b) setting ?

<b>Is there a better way to this ?</b>

<b>THANK YOU FOR YOUR GUIDANCE !</b>

[Former Member]

Hi

Though these two strategies are similar , there is a hair line difference is there in consumption of PIR's:

planned independent requirements are consumed by production order requirements in 70 and not to requirements of sales orders as in 40.

I feel the set up what you have mentioned should work fairely well.

Regards

YMREDDY

[Former Member]

Dear Reddy,

Just to confirm my understanding that, I <b>can</b> change all products to default Strategy Group "40" <b>without</b> setup of (2b). Here, we shall assume all product to be potential for spare part sales (No need independent demand).

Should we have certain product (i.e machine level) that requires to be manage by Independent demand first then subsequently be consumed by sales order, then we will further setup per (2b)

<b> Thank you for your further guidance !</b>

[Former Member]

Hello,

Normally 40 , will be used when the sale order and PIR are for same item.

In case of 70, strategy 70 is given for the subassembly. Here you are starting the planning at subassembly level and when the actual demand of the FERT will come,

the actual demand will consume the PIR'S and no duplicate planning will happen.

Strategy 70, is used for planning components of the subassembly.

[Former Member]

Dear Ravindra & all,

If I have sub-assy that is part of machine/generic, and yet itself is also sold as spare parts, <b>I can leave it as Strategy Group "70" and yet create Sales Order for it, correct ?</b> The only assumption is, independent demand is not use, only sales order.

Do you foresee any other side-effect ?

In our setup, we use HALB/semi-finish for all parts, includeing FG. As our FG is semi-finish to inter-company.

<b> Thank you for your guidance !</b>