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Differences between planning strategies 40,70 & 50

My understanding is as follows:

startegy 40: mts startegy, here finished products are produced against pir (forecast) and when we receive the s/o, s/o will consume the pir. example: finished products are manufactured without s/o and when we recieve the s/o they wil be shipped to customer.

strategy 50: mto startegy, here sub assemblies are manufacture against pir (forecast), when we recieve the s/o for the finished/final product, all the manufactures sub assemblies will be assembled finally with an extra value added operation and sent to customer. please suggest me an example for this strategy.

startegy 70: mts startegy, here sub assemblies are manufactured against pir, when we receive the s/o for final product, bom explodes and dependent req consume the pirs. i think here there is no final assembly/ value added operation. i think the sub assemblies will be sent as it is.

startegy 20: simple mts strategy for components. components are produced against pirs, against s/o when we do gi, the s/o will consume the pir of the components. applicable only for raw material or components.

startegy 10: simple mto, against s/o only production commences. no pirs.

please advise any mistakes in my understanding of above stategies and i appreciate if you give me one scenario for each startegy. mainly looking for differences between strategy between 40 and 70.

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    author's profile photo Former Member
    Former Member
    Posted on Mar 15, 2008 at 09:59 AM
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  • author's profile photo Former Member
    Former Member
    Posted on Mar 15, 2008 at 09:34 AM

    hi Yadav

    Q:-

    startegy 20: simple mts strategy for components. components are produced against pirs, against s/o when we do gi, the s/o will consume the pir of the components. applicable only for raw material or components.

    Ans :- 20 is MTO strategy. MRP will react only to Sale order not to PIR. All the dependent req are exploded against the header material sales order. The stocks will be of sale order stock only.

    As you said it is not MTS.

    Q

    startegy 10: simple mto, against s/o only production commences. no pirs.

    Ans:- 10 is MTS net requirement. Unresticted stock will be considered for MRP . The planning proposal will be less by your stock. MRP will react only to PIR not to sale order.

    As you said it is not MTO

    Regards

    J. Saravan

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  • author's profile photo Former Member
    Former Member
    Posted on Mar 21, 2008 at 05:11 PM

    Hi

    I know of a Industry which manufactures Industrial Batteries.

    In one of the plant the scenario is as under :

    There are different HALBS which are manufactured and kept as stock based on the Sales Forecast given.Final Assembly is triggered only after receipt of Sales Order.( These same HALB's are used in different Assemblies / FERT's in different combinations.) HERE STRATEGY 50 CAN BE USED.

    Hope this example makes u clear with 50

    Anil

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