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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 –

/wp-content/uploads/2016/01/1_869247.jpg

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

Transaction – MD61

/wp-content/uploads/2016/01/2_869248.jpg

See the stock/requirement of the material –

Transaction – MD04

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

/wp-content/uploads/2016/01/3_869252.jpg

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

Transaction – MD81

/wp-content/uploads/2016/01/4_869253.jpg

Now again see the stock/requirement of the material –

Transaction – MD04

Customer requirement is appearing –

/wp-content/uploads/2016/01/5_869254.jpg

Now run MRP on the material –

Transaction – MD02

/wp-content/uploads/2016/01/6_869255.jpg

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 –

/wp-content/uploads/2016/01/7_869258.jpg

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

/wp-content/uploads/2016/01/8_869259.jpg

Production order is released –

/wp-content/uploads/2016/01/9_869260.jpg

First planned order is converted to production order 1000022 –

/wp-content/uploads/2016/01/10_869261.jpg

Good receipt is done for the production order 1000022 –

Transaction – MIGO_GO

Movement Type – 101

/wp-content/uploads/2016/01/11_869262.jpg

Production order is converted to stock of 40 –

Transaction – MD04

/wp-content/uploads/2016/01/12_869263.jpg

Now post a GI for the customer requirement –

Transaction – MIGO_GI

/wp-content/uploads/2016/01/13_869264.jpg

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 –

/wp-content/uploads/2016/01/14_869265.jpg



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 –

/wp-content/uploads/2016/01/15_869266.jpg

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 –

/wp-content/uploads/2016/01/16_869267.jpg

Create a customer requirement of 40 quantity on 1st March

Transaction – MD81

/wp-content/uploads/2016/01/17_869268.jpg

Now again see the stock/requirement of the material –

Transaction – MD04

Customer requirement is appearing –

/wp-content/uploads/2016/01/18_869269.jpg

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

/wp-content/uploads/2016/01/19_869270.jpg

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.

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      6 Comments
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      Author's profile photo madhukar poul
      madhukar poul

      Thanks for Sharing

      Regards,

      Madhukar

      Author's profile photo Former Member
      Former Member

      Hi Alok

      Good document and easily understandable. Thanks for sharing

      regards
      Suheel.

      Author's profile photo Venkatdas VANGA
      Venkatdas VANGA

      Hi Alok

      Thanks for sharing

      Regards,

      Venkatdas

      Author's profile photo José Henrique Dallagnese
      José Henrique Dallagnese

      Hello Alok,

      Great!!!

      I didn't know how the strategy 10 it worked.

      Thanks for your collaboration!

      Regards,

      José Dallagnese

      Author's profile photo Muhamed Ibrahem
      Muhamed Ibrahem

      Hello Alok,

      It was clear know about Strategy 30

      Thanks for your collaboration

       

      Regards,

      Muhamed

       

      Author's profile photo satyam chiluka
      satyam chiluka

      In strategy 30, procurement is based only on sales orders, and no planning for the
      finished product is involved. Depending on the dates, several sales orders can be
      grouped together for production in one single lot. Moreover, strategy 30 has the following
      qualities:
      • It's not possible to use information from other SAP planning tools, such as forecasting,
      sales information systems, or S&OP (except when combined with schedule
      line agreements).
      • An accurate availability check is performed according to ATP logic during sales
      order processing.
      • Lot size optimization and rounding mechanisms are possible. Depending on the
      dates, several sales orders can be grouped and collectively produced in a single lot.
      The lot size in this procedure can depend on various aspects of production, such as
      pallet size or production optimization.
      • Leftover stock from previous procurements can be used. Using leftover stock for
      other sales orders is particularly useful for companies that mainly produce goods
      for major customers but also want the option to sell smaller requirements from
      stock.
      • P!Rs aren't consumed by sales and stock orders. However, the delivery "consumes"
      the schedule lines or sales order items because it updates goods as delivered. If an
      issue is made for a particular sales order, the system reduces the sales order quantity.
      • Stock orders are reduced when the goods are sold from stock.

      Lot Size procedure is important in this Strategy.