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    Make To Stock Strategies - Strategy 11

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    Make to Stock Strategies – Strategy 11


    March 9, 2014 | 2,027 Views |

    Kyatam Vinamrath Kumar


    more by this author

    MAN Production Planning (PP)

    Manufacturing

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    Introduction:
    Planning Strategy ’11’ is one of the most widely used and one of the
    important strategy of the MTS strategies. This strategy is also called
    as Gross Requirements Planning.
    Strategy ‘11’ is particularly useful for make-to-stock scenarios and
    the sales orders have no effect in the production with out considering
    the plant stock in to consideration . This strategy is particularly useful if
    you need to produce the Product, regardless of whether you have stock or

    not. The production is based on production plans transferred from


    SOP to demand management or with manually entered PIR’s.

    Few important features of this strategy are:


    Plant stock and Sales Order requirements do not affect the
    production.
    No concept of PIR consumption through customer
    requirements, since customer requirement is not relevant for
    make-to-stock production.
    PIR reduction happens during Goods receipt of the Production
    Order.

    Master Data:

    You need to maintain the following master data for the finished product:

    Maintain strategy group 11 on the MRP screen.


    Set the Mixed MRP indicator to 2 on the MRP screen.
    Maintain the item category group (for example, NORM) on the Sales
    Organization screen.
    Maintain the Availability check field so that you perform an availability
    check without the replenishment lead time (checking group 02 in the
    standard system).
    Process Flow :

    Creation of Planned independent requirements (PIR’s) for the production


    plan (MD61)

    MRP Run .(MD02)

    Procurement requisitions are created in the MRP run

    Planned order conversion to Production Order

    Production Execution and goods receipt for the order, the


    stock/requirements list display (MD04)

    Reduction of Planned Independent Requirements during Goods Receipt of


    the Production Order

    Sale order creation (VA01)

    Goods Issue for Delivery (VLO1N)


    Detailed Process Flow :

    Initial situation of material with stock 100

    Creation of Planned independent requirements (PIR’s) through MD61


    Now save
    Carry out MRP planning Run…with MD02
    Planned Orders created for the material.. here it can be observed that
    plant stock is not considered in net requirement calculation…

    Now convert the first planned order to production order and release
    Complete Goods Issue, Confirmation and Goods Receipt of the
    Order……after the goods receipt of the Production Order stock gets
    increased by 100 and First PIR gets consumed….

    then save
    Creation of sale order for the Product….
    Now it can be observed that Sale order does not have any influence on
    the planning situation it will be on display only as shown below…
    Now Goods delivery against the sale order through VL01N….
    Now final situation of the material….

    Thanks

    Kumar

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    4 Comments
    You must be Logged on to comment or reply to a post.

    Ramagiri Srinivas Rao

    March 9, 2014 at 11:05 am

    Hi Kumar,

    Nicely explained. You can also add where this type of strategy is used. For
    Eg:Cement Industries use this type of strategy where they do not consider the
    available stock.

    Thanks & Regards,

    Ramagiri

    Kyatam Vinamrath Kumar Post author

    March 28, 2014 at 2:57 am

    Hi,

    Thanks for your compliment…

    Regards

    Kumar

    Sharma rakesh

    April 25, 2014 at 12:46 pm

    Hi Kumar,
    Informative and great explanation. This Doc- would be helpful for young
    consultants like me .Expecting few more Doc’s in future.

    Thanks & Regards

    Rakesh

    Raja Rajan Chokkalingam

    February 7, 2017 at 6:48 am

    Hi Kumar,

    Thank you so much for this blog.

    I have a question, will this work the same way for process orders as well ?

    (in the blog you have demonstrated with production order)

    Thanks,

    Rajan.

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