Skip to Content
Author's profile photo Srirama Manikandan

Decision tree for choosing the planning strategy for a material

Consider a final product A which has an assembly B as a componentBOM model .jpg

When we assign a strategy group to a material in material master record, the system determines the correct requirements type for the planned independent requirements (PIR) and sales order for that material. The requirement types control the business procedures concerning the sales orders, PIR, generation and conversion of planned order and so on. It is important to choose the correct strategy in order to match the business procedure so that planning, production and sales gets streamlined to the demand situation.


The decision tree has been drawn in such a way that it helps to determine the right strategy to adopt for the final product A, except for the three strategies 70, 59 and 74 which really is meant to be adopted at any of the component level like B,C or D and so on. The component level strategy is given a separate color code for easy identification.


A note of caution before we start with the description of the tree: all the differences between the strategies cannot be known from the tree. Only the major unambiguous questions have been asked at each node of the tree.


Description of the tree:


The strategies that have been covered by the tree are:

Strategies for make to stock: 10, 11, 30, 40, 52 and 63

Strategies for make to order: 20, 50 and 60

Strategies for planning components:  70, 59 and 74


More details on the strategies can be found in this link:


Every node in the tree has an unambiguous question which can be answered by a YES or NO and not both of course, the green arrow represents a YES while a red arrow a NO. By asking the questions and answering them we will be able to get a unique case for each strategy type. Now there are many more differences between the strategies which are not accounted for in the tree, the tree only contains a single difference to make a unique choice.

strategy tree.jpg

Hope that this decision tree will be useful for choosing the right strategy, will definitely let the tree grow based on the valuable feedback. Kindly feel free to add your comments.




Assigned Tags

      You must be Logged on to comment or reply to a post.
      Author's profile photo Satish Kumar Dhanapal
      Satish Kumar Dhanapal

      Hello Sriram,

      Nice overview



      Author's profile photo Srirama Manikandan
      Srirama Manikandan
      Blog Post Author

      Glad to hear it Satish

      Author's profile photo Former Member
      Former Member

      Thanks for this decision tree. For me as an Intern it was extreamly usefull.

      Author's profile photo Srirama Manikandan
      Srirama Manikandan
      Blog Post Author

      Thanks for the gratitude

      Author's profile photo Colin Cooper
      Colin Cooper


      Not sure how your post has ended up here but this doesn't look like it is related to SAP Strategy Management. Maybe this is a misplacement during the migration from SCN to the new Community environment!


      Colin Cooper

      Author's profile photo Srirama Manikandan
      Srirama Manikandan
      Blog Post Author


      Looks like you are right, removed some tags that i don't remember adding while posting, should be fine now.


      Author's profile photo Patrick Sekar
      Patrick Sekar

      Very useful decision tree, thank you !!!