Strategy ’10’ is one of the frequently used and frequently discussed MTS strategies. In this document we try to explore this strategy with the relevant configuration setttings.
Strategy ‘10’ is particularly useful for pure make-to-stock scenarios and the sales requirements have no effect in the production. The production is based on production plans transferred via demand program/ manually entered PIR’s. Strategy ‘10’ is also referred as ‘Net Requirements Planning’ and few important features of this strategy are:
- Sales Order requirements do not affect the production.
- No concept of PIR consumption through customer requirements, since customer requirement is not relevant for pure make-to-stock production.
- PIR reduction happens with PGI’s for Sales Order delivery.
- It is often used in make-to-stock REM.
Important Master Data:
In this example we will consider a simple BOM structure, one FERT containing one ROH as the BOM component. Strategy 10 is used for finished products exclusively, thus the important parameters relevant to this strategy is set up for the FERT item as shown.
Item category group ‘NORM’ in the Sales Organization view:
Strategy Group ‘10’ and a suitable availability check group without RLT (in standard, availability check group ‘02’):
Relevant configuration settings:
Strategy group ‘10’ contains only main strategy ‘10’ in the standard system, the same can be verified/ maintained in OPPT transaction (alternatively in SM30 transaction, view V_T461P) and this configuration is stored in T461P database table. More about the requirement type, requirement class and their connection to the planning strategy is discussed in this document when required.
Availability check group without RLT can be verified in OVZ9 transaction. The checking rule for make-to-stock strategies is ‘A’, and for make-to-order it is ‘AE’. In OVZ9, we check for the ‘check without RLT’ indicator for checking rule ‘A’ and checking group ‘02’ (can be checked/ maintained at table level in SE16N transaction T441V table; alternatively in SM30 transaction V_441V view – field name is T441V – OWBZP).
We will discuss the relevance of Consumption mode, Backward Consumption period and Forward Consumption period a little later when we discuss the consumption logic and strategies. According to the requirements of the planning perspective, these fields need to be maintained.
In PP point of view, these are the relevant master data that we need to provide.
Standard Scenario Flow:
The PIR’s are created in this step, which can be manually inserted or derived from Sales and Operations planning. In this example we create the PIR’s manually through MD61 transaction.
In the initial screen of MD61, the user can change the format (Monthly, Daily etc.) in the Planning period field (RM60X-ENTLU). In this example, we switch to the daily view and provide requirement quantities on three different dates as shown (note the ‘Active’ indicator in MD61).
When working with multiple BOMs and production version wise BOM selection, use the menu function Settings -> Production Version in the schedule line tab in MD61/ MD62 to enable the production version column, so that you can define PIR’s according to the production versions.
The system finds requirement type as ‘LSF’ derived from the configuration of the strategy 10. It is defined in OPPS transaction (for a reference of assignment of Requirement Types to the planning strategies, take a dump from T461S table). Check the entry for ‘requirement types for independent requirements’ in OPPS configuration for strategy ‘10’. Since stock/requirements list or MD04 is a dynamic report, we should be able to see the PIR’s entered (here in MD61) in MD04.
Procurement before Sales:
In this step, we need to procure (produce, ‘procurement’ is a generic and broad term) the FG so that we can sell the same later against the customer orders.
We run MRP, get the procurement proposals from MRP (in this example planned orders), and convert them to production orders (in case of REM, the production is based on planned orders and the planned orders are non-convertible), and produce against the production orders and do the PGI against SO delivery.
After running MRP, system generates planned orders to cater the requirements; lot size plays an important factor for the planned receipt quantities.
In this example, I have converted the first planned order (you can perform partial conversion) fully.
Now we post confirmation for the production order (for simplicity, we have activated auto GR through control key PP03 in routing of the FERT and auto GI through backflush indicator of the ROH material master backflush indicator in MRP2 view), and get the stock of the FERT.
We now create a sales order of 30 pieces in VA01 transaction.
In the procurement tab, we find the Requirement Type as ‘KSL’ and Schedule line category as ‘CP’ in standard system. The system finds the item category as ‘TAN’ in standard system.
These are derived from the settings for planning strategy OPPS, and from the configurations in SD. As discussed earlier, the requirement type for customer requirements is defined as KSL for strategy ‘10’ in OPPS (table T461S).
The schedule line category and the item category are derived as discussed here. In SPRO -> Sales and Distribution -> Sales -> Sales Documents -> Sales Document Item -> Assign Item Categories (SM30 transaction view V_T184), we define that based on the Sales Document type and item category group the value for the item category. The SD document type that I chose in this example is ‘ZDSE’, and the item category group in Sales Organization view of the material master we have selected ‘NORM’.
In SPRO -> Sales and Distribution -> Sales -> Sales Documents ->Schedule Lines -> Assign Schedule Line Categories (SM30 transaction view V_TVEPZ), it is defined that the proposed schedule line category for item category TAN and MRP Type ‘PD’ combination will be ‘CP’:
We save the sales order and check the stock/requirements list. The sales order is displayed, but it does not affect the available quantity.
Technically speaking, this depends on the value of VBBE – NODIS (No MRP) field value for the sales order, line item and schedule line combination. For requirement type ‘KSL’, in standard it is ‘1’.
This is derived from the SD configuration as discussed in the following section. In OVZH configuration, we maintain the requirement type to requirement class mapping; for KSL it is 030. In OVZG configuration for requirement class 030, the No MRP field is maintained as ‘1’. If you want to switch off the display of sales order in MD04, you can maintain this value as ‘2’. Please note, do not maintain this as ‘blank’ for requirement class 030, the requirement transfer can generate serious consequences.
Also, it can be noted that the PIR quantities have not been consumed. For strategy ‘10’, no concept of PIR consumption is there since the SO’s are not relevant to change the planned quantities.
Goods Issue for Delivery and PIR Reduction:
We create a delivery in VL01N and post the Goods Issue for Delivery on 08.12.2013. For strategy ’10’, PIR’s are reduced by the 601 movement against the delivery.
We face an issue in this example, the PIR is not reduced:
The reason the PIR is not reduced is that the PIR lays in future 11.12.2013 than the PGI for delivery 08.12.2013 and we do not have any forward consumption period maintained in material master. As per OSS note 772857 Question # 3, “the reduction occurs in the time scale up to the current date and the oldest planned independent requirements are reduced first. By maintaining the consumption period forwards, planned independent requirements are used for the reduction from the current date up to the number of days in the future entered there. The used consumption mode is not effective.” It is recommended to go through OSS note 38687.
So we reverse the Goods Issue in VL09, change the consumption mode to 2 or 3 with a forward consumption period of say 15 days, and post the Goods issue again and check.
The first PIR has been reduced now.
Considering OSS note 38687, the oldest PIR’s are reduced first up to the current date, then system checks whether forward consumption is allowed for a certain period and can reduce the same. The consumption mode, backward consumption period and forward consumption period can also be maintained at an MRP group level in OMD1 or OPPR configuration, but the values entered in the Material Master MRP3 view has the highest priority. We should also consider BAdI MD_PIR_FLEX_CONS for flexible consumption/ reduction according to the MRP elements.
After reduction in the PIR’s, the old PIR quantities can be checked in MD63 Schedule line tab.
SAP Help – Demand Management: Net Requirements Planning (10) – Demand Management (PP-MP-DEM) – SAP Library
OSS notes: 772857, 38687
Thank you for reading. Kindly notify if any modifications/ updates necessary.