planning strategy(10 Net trmt planning) and 40 final Assembly

[Former Member]

Hi,

PP Gurus......

what is the difference between planning strategy(10) and Planning with final assembly(40).

Yogesh...

[Former Member · Accepted solution]

Hi Yogesh

Both are Make to stock strategy only. Both considers stock while calculating net requirement for any material.

The major difference is

1) in Strategy 10 Sales order is only for informative purpose. It will not react to MRP and it will not create any procurement proposal. But in 40 sales order will react to MRP it will generate procurement proposal.

2) in stg 10 PIR will get consume during the delivery of final FERT to customer. Till such time it will be displayed in MD04.But in stg 40 PIR is dynamic and it will get consume for sales order immediately according to the consumption mode ( forward / backward ) we are using.

If you want your system to react sales order as well as you have to plan in advance based on your forecast PIR. IT is better to use strategy 40 rather than stg 10.

Hope this is clear.

Regards

J .Saravan

[Former Member · Accepted solution]

Thanks for prompt reply.........

[Former Member]

Strategy 10 :

- Sales orders are filled from warehouse stock

- Sales orders are not taken into account in the planning run

- The demand program is reduced at shipment (net requirements planning)

Strategy 40 :

- Planning is done at the finished product level

- Procurement and production are initiated after planning

- Sales orders consume the forecast quantities

- Forecast quantities that are not used increase warehouse stock

- Additional requirements automatically adjust demand program

[Former Member]

Hi,

Strategy 10:

1. Sale order only information purpose.

2. Sale order should not consume PIR.

3. PIR reduce while goods issue to delivery.

Strategy 40:

1. Sale order considers the stock.

2. Sale order consume the PIR. If requirement not covered system create planning proposal.

3. PIR reduce while goods issue to delivery.

Regards,

Dharma

[Former Member]

Hi, dharma......

I appreciate ur reply......

one thing i wld like to know is if we r using MTS strategy with 10 and 40 ,then what makes it difference from MTO.

Our scenario is like we create PIR for final assembly product and then do MRP.

Awaitng ur reply......

Yogesh

[Former Member]

Hi,

MTO:

1. In MTO, production will trigger when the sale order comes.

2. Without sale order you can not do production process.

3. MTO you can not create PIR, because for 20 strategy no requirement type.

4. This stock is customer specific. You can not deliver the stock to different customers.

MTS:

1. In MTS, production will trigger before getting the sale order.

2. With PIR, you can do production process.

3. This stock is not customer specific. You can deliver the stock to different customers.

For your scenario MTS is suitable.

Regards,

Dharma