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.
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.