Planning Strategy 10 vs Planning Strategy 30 in MTS

Planning strategy 10

Planning strategy 10 is one of the most common Make-to-Stock (MTS) strategies available in ECC. Key highlights of this strategy are –

• Planning is carried out at Finished product level using Planned Independent Requirement (PIR)
• Sales orders/customer requirement is not taken into account during MRP run
• There is no consumption of PIR by sales orders
• Reduction of the demand program, that is, reduction of the planned independent requirements, is carried out at goods issue

Example –

Finished Product FG01 at plant P1A1

Note the Strategy in MRP3 Tab –

Planned Independent Requirement (PIR) is created for the material for three months – Feb- April as shown below –

Transaction – MD61

See the stock/requirement of the material –

Transaction – MD04

Here can see all the three PIR created is appearing for three months –

Now create a customer requirement of 40 quantity with req. delivery date as Feb 10–

Transaction – MD81

Now again see the stock/requirement of the material –

Transaction – MD04

Customer requirement is appearing –

Now run MRP on the material –

Transaction – MD02

Now again see the stock/requirement of the material –

Transaction – MD04

Planned order is created only of 40 quantity as only requirement of PIR is considered and not of the customer requirement –

Now the first planned order i.e. 102824311 is converted to production order –

Production order is released –

First planned order is converted to production order 1000022 –

Good receipt is done for the production order 1000022 –

Transaction – MIGO_GO

Movement Type – 101

Production order is converted to stock of 40 –

Transaction – MD04

Now post a GI for the customer requirement –

Transaction – MIGO_GI

Now again see the stock/requirement of the material –

Transaction – MD04

Note the customer requirement has been satisfied and no longer appears in the list. Also the stock and PIR is no longer there –

Planning strategy 30 – Production By Lot Size

• Planning is carried out at Finished product level using Planned Independent Requirement (PIR)
• Sales orders/Customer Requirement is also taken into account in MRP
• There is no consumption of PIR by sales orders
• Sales orders are fulfilled from stock. The customer requirement is reduced by the goods issue to the customer
• In production by lot size, the system groups the procurement quantities for customer requirements and planned independent requirements into lots. To do this, it uses the lot-sizing procedure that you define in the material master record.

Example –

Finished Product FG01 at plant P1A1

Note the Strategy in MRP3 Tab –

Check the initial situation of the stocks and requirements of the material

Transaction – MD04

There are two PIR of 50 and 60 quantity each as shown below –

Create a customer requirement of 40 quantity on 1^st March

Transaction – MD81

Now again see the stock/requirement of the material –

Transaction – MD04

Customer requirement is appearing –

Now run MRP for the material by executing transaction MD02.

After MRP run, again see the stock/requirement of the material –

Transaction – MD04

Now we can see that MRP considered requirement of both customer requirement (40) and PIR (50) to create one common procurement quantity (planned order) of 90 quantity as shown below

This is the major difference between planning strategy 10 and planning strategy 30 as here sales orders/CIR is also considered in MRP run which was not the case in planning strategy 10. This is particularly used when you need to map orders for major customers and factory sales from the warehouse simultaneously.