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Former Member
Mar 15, 2008 at 07:38 AM

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.