Outlining Make-to-Stock Production

The demand program is defined without reference to sales orders.

Sales orders are fulfilled from stock. You can carry out the availability check with ATP logic in Sales and Distribution. Goods withdrawals against a sales order reduce the respective sales order.

Planning with final assembly (planning strategy 40) allows you to focus on a flexible and fast reaction to customer demand. This strategy also aims for a smooth production process.

You set the planned independent requirements to trigger the procurement and production of all components and assemblies, including their final assembly before sales orders arrive. You set the planned independent requirements for the finished product in Demand Management. Incoming sales orders consume these planned independent requirements. Planned independent requirements that have not been consumed can periodically be set to zero (transaction code MD74).

If customer requirements exceed planned independent requirements, the system automatically creates a planned order for the sales order, including the unplanned quantity, in the next material requirements process run (sales orders that affect requirements).

The availability check can be executed from the sales order. The consumption of planned independent requirements by customer requirements depends on the consumption mode and the consumption periods.

You can use a consumption mode to determine the direction on the time axis in which incoming sales orders consume planned independent requirements.

The following are the features of different consumption modes:

• Backward consumption (consumption mode 1):

  Sales orders consume planned independent requirements before the customer requirement.

• Forward consumption (consumption mode 3):

  Sales orders consume planned independent requirements after the customer requirement.

  The time interval for consumption is limited by the according consumption period.

  You can combine backward and forward consumption after taking the consumption periods into account (consumption mode 2 or 4).

You can define the consumption mode and the consumption periods either in the material master or for each plant and MRP group. If you do not enter any values, the system uses the default setting with backward consumption for 999 days.

In addition to the consumption mode and consumption periods, the consumption indicator (consumption type) is important. For example, the consumption indicator controls whether the planned independent requirements are consumed with the customer requirements or with dependent requirements and order reservations. It is defined as a default value for each planned independent requirement class in Customizing for Demand Management. You can override the indicator on the item detail screen for planned independent requirements management.

The figure shows a situation in which the sales order you receive is smaller than the planned quantity within the consumption period.

The figure shows a situation in which the sales order you receive is larger than the planned quantity within the consumption period.

The figure shows a situation in which the sales order you receive is larger than the planned quantity within the backward consumption period, but forward consumption is also permitted.

When you are processing variants, it makes sense to plan at the assembly level (strategy 70 + set mixed MRP indicator) if it is easier to specify a requirements forecast for certain assemblies than it is for the variant diversity of the finished product.

With this planning strategy, planning for an assembly is considered separately. The planned independent requirement is entered at assembly level and triggers the production of the assembly.

If sales orders are received for the finished product, the BOM is exploded for the finished product. Dependent requirements or reservations are also created for the assembly as a result of planned orders or production orders for the finished product. These consume the Planned Independent Requirements of the assembly.

If, due to sales orders, planned orders, or production orders at finished product level, the dependent requirements or reservations exceed the assembly’s Planned Independent Requirements, a planned order is created for the assembly during the next planning run.

In Sales and Distribution, the system does not check the assembly planning quantities. In the strategy group of the material master record, you must enter strategy 70 and set the mixed MRP indicator for assembly planning.

The consumption indicator on the item screen of the planned independent requirements must allow consumption with reservations and dependent requirements.

You make the strategy setting in the material master for the assembly or assemblies. Maintain the planning strategy 70 together with the set mixed MRP entries in the S/4HANA material master (MRP 3) for the assembly or assemblies. In principle, the finished product can show any strategy.

Maintain the consumption parameters (consumption mode, forward and backward consumption periods) in the material master.

The consumption indicator on the item screen for the Planned Independent Requirements must allow consumption with reservations and dependent requirements.

If you map this strategy together with a final assembly that takes place in make-to-order production, you must also set the individual or collective entry to "collective" in the material master of the assemblies.

For consumption in sub assembly planning, proceed as follows:

1. Create the requirement quantities expected in the future for the assembly. You do this in Demand Management.
2. Create and plan the sales orders at finished product level or generate the production orders.

The resulting dependent requirements or reservations (for the assembly) consume the planned independent requirements of the assembly.

Similar to S/4HANA strategy 40, the consumption logic is determined by the consumption mode and the backward and forward consumption periods. These are defined in the material master for the assembly, or per plant and MRP group.

With this strategy, the consumption periods are calculated based on the dependent requirements or reservations.