Explanation on use of Strategies for Make to Order/ Make to stock scenario

Hi Gurus,
I have a scenario. In the BOM, the final Finished Product was to be made for make to order. There are two semi finished material below that. One I want to use it for make to stock and another for make to order. There is one more raw material at the bottom level which I want for make to stock. So I want to know what are the strategies I can use in the material master at all the levels for this scenario. Can anyone explain how can I do it in SAP?
Regards,
Brijesh

Dear Brijesh,
This indicator will determine the component how it should get produced either individually or collectively
Example
Fert 1 - strategy 20, requirement for this fert Via sales order is 10
Fert 2 - strategy 40 requirement for this fert Via sales order/demand management is 10
ROH is used in both Ferts and mainatined in BOM and also set to indicator 2 ( Colletive ) in MMR
ROH requiement for fert 1 -1 ( BOM )
ROH requiement for fert 2 -1 ( BOM )
after MRP system will create only 1 PR for total qty 20
If ROH is set to 1 ( individually ) then
after MRP system will create 2 PR's as 10 each
Hope it answers your query
Regards
Madhu

Similar Messages

Dash board report for make to stock scenario?

hi friends,
Here i am having a problem that, I need to do the dash board report to display the sales and production values (quanty s , value) with particular date comparission.
some more detailed.
my client need the report with day wise production and sales values with respective of material number. I can make the report if it is make to order situation. but , this is make to stock situation. and also mentioned that values should match the G\L Account ,ref: fs10n Transaction.
plz help out ......
rewards in advance.
Regards,
Naveen M

The definition of Organization structure might not allow you to do so
Please go throught the following link in detail http://help.sap.com/saphelp_47x200/helpdata/en/f4/7d3f9344af11d182b40000e829fbfe/frameset.htm
Summary from the above link is as mentioned below
You can plan material requirements at plant level or for different MRP areas. With MRP at plant level, the system adds together stocks from all of the individual storage locations, with the exception of individual customer stock, to determine total plant stock. The requirements are combined in the planning run and procurement elements are created for these pegged requirements with unknown sources. Individual storage locations can be planned separately or be excluded from planning.
In the case of material requirements planning on an MRP area level, only the stocks from the storage locations or subcontractor assigned to the respective MRP area are taken into account. Only the requirements in this MRP area are combined and procurement elements are created for them. This enables you to plan material requirements specifically for certain areas.

Availability check for Make to stock and Make to Order

Dear All,
Client is selling Make to stock and make to Order material.
How and what settings need to do for Avaialbility check.or we can use standard one.
I hope in case of Make to Order availability check may not happen.
Please correct me.
Thanks in advance.
Regards,
Shrikant

hi,
yes for make to order we dont have AvChk. for make to stock items u need to follow the
below configuration.
Availability check
1. Availability check is an integral part of the business process that determines if the required delivery quantity can be met on a required delivery date. For this purpose the system takes into account pre-delivery activities such as scheduling for picking or packing times and the time taken to produce or obtain the material. It also performs several background functions such as Backorder processing, rescheduling and ATP quantities.
2. Backorder processing: processing of a sales order that has not been fully confirmed or not confirmed at a certain delivery date.
3. Rescheduling: is a proposal of how u2013 confirmed quantities already assigned to a sales order can be reassigned to other sales orders that have a higher priority.
4. Available to promise (ATP): is a process of checking the available quantities of a material. The ATP quantity consists of warehouse stock + planned receipts (incoming stock) u2013 planned issues (outgoing stock). to examine stock on hand (CO09) proceed to logistics u2013 sales & distribution u2013 sales u2013 environment u2013 availability overview.
5. Replenishment lead time (RLT): is the time taken for the material to become available either internally (in house production) or externally (from a vendor). The most important things to consider during an external procurement are purchasing and MRP 2 (procurement) views of MMR where the processing time for purchasing, planned delivery time and goods receipt processing time are taken into account. On the other hand internal procurement is based on in house production time (MRP 2 view) goods receipt processing time or alternatively RLT time, which is found on MRP 3 view.
6. RLT (Replenishment Lead Time) is the time taken for the material to become available. RLT is only used when doing an ATP check (Available To Promise). The value of RLT for a material is specified on material master record.
7. There are three types of availability checks u2013
Check on basis of ATP quantities.
Check against product allocation.
Check against planning.
Configuring Availability check through Checking Groups u2013
1. The checking group + checking rule determine how the availability check is to be performed.
2. The checking group determines whether and how the system checks the stock availability and generates requirements for material planning. The checking group defines what type of requirements will be passed on i.e. summarized requirements (daily/weekly) or individual requirements for each sales order.
3. The checking rule applies to how the availability check is to be carried out at the transaction level. Note that you must define checking rules for each individual application such as for production orders for example. In Sales and Distribution, the checking rule is specified internally within the system and cannot be changed.
4. The checking rule, in conjunction with the checking group, determines the scope of the availability check for every business operation; that is, which stocks, receipts and issues are to be included in the availability check and whether the check is to be carried out with or without the replenishment lead time.
5. Briefly explaining the above u2013 checking group determines which type of requirement to be passed on to MRP whether it be individual or summarized and checking rule which is at the transaction level and can be configured independently for each application module, determines which stocks, receipts and issues to be taken into account. For performing an availability check checking group has to work in conjunction with checking rule.
6. Advantages of individual processing over summarized processing u2013
Backorder processing is possible.
You can access (MD04) order, line and schedule line individually which gives a greater control on available stock and requirements placed on stock.
The system automatically uses individual requirements in case of special stock items.
7. Required data for the Availability check to be carried out u2013
The Availability check must be switched on at the requirement class level.
The Availability check must be set at the schedule line level.
A requirements type must exist by which the requirements class can be found.
A plant must be defined in the sales order for each schedule line item (in other words plant must be defined for every material in MMR).
A checking group must be defined in the material master record in the MRP3 screen in the availability check field.
8. Configuring Availability check and defining Checking Groups u2013
Checking groups are introduced into the sales order based on the setting in the material master record.
SAP standard checking groups are 01 u2013 summarized requirements and 02 u2013 individual requirements or you can create your own by copying the standard ones.
Total sales and total deliveries columns are there to configure a checking rule to sum up requirements to post to MRP either individually or by day or week.
Block quantity required can be set if you want several users to be able to process the material simultaneously in different transactions without blocking each other.
The no check indicator is CHECKED when you DO NOT want the system to carry out ATP check.
9. Defining material block for other users u2013 the block check box is an indicator that enables you to block material master records of a particular material during the availability check and restrict other users from accessing same master record and reserve the material. If the block is not set, two users can confirm the same material at the same time for two different orders, not knowing if the stock is available or not. If you select this field, the material is blocked during the availability check and other users cannot: a) Make changes in the material master record. b) Create purchase orders for the material. C) Create orders for the material.
10. Defining default values for checking groups - Checking groups are introduced into the sales order based on the setting in the material master record.
However if there is no entry present in the material master record for the checking group, a default value can be set here, depending on material type and plant.
This default value will be used by the system depending on the material type mentioned in MMR and plant in sales order.
If an entry exists, this default value is over written by MMR.
11. Controlling Availability Check u2013 in this section, you tell the system what stock on hand and what inward and outward movements of stock it must take into account when performing the availability check in addition to whether or not to consider the replenishment lead time.
12. These settings are based on the checking group that is assigned to the material master record and the checking rule that is predefined and assigned to the sales and distribution transaction.
13. These settings carry out control both for sales order and delivery as well. This is due to the fact that you may want to include specific stock or incoming stock for the sales order, yet at the time of the delivery only include physical stock on hand waiting to be shipped.
14. It is possible to indicate to the system that you would like the availability check NOT TO CHECK the stock at the storage location level. This indicator is used to set the scope of the availability check.
15. It is used to switch off the check at storage location level. You create a reservation for a particular storage location. However, the scope of the availability check is set in such a way as to exclude the storage location. In this case, the system carries out the check at plant level only and does not take the storage location into account that is specified in the reservation.
16. Should you not want the system to automatically check RLT, you may indicate so here. RLT is the time taken for a material to become available. It is only used when doing an ATP check and is taken from MMR.
17. Defining the elements in the availability check entirely depends on the business needs, but a few tips are given under u2013
When controlling the Availability check at the time of the sales order, a purchase requisition does not necessarily indicate by it is going to come into the plant.
A shipping notification on the other hand - a confirmed purchase order u2013 is a good indicator of receiving stock on a specified date.
It is always recommended not to select the shipping notifications for the delivery requirements type as you may not actually receive the stock into plant or warehouse for which you are creating a delivery.
regards
anand

The reporting point backflush is not possible for make-to-stock repetitive

Hi All,
we are using the assembly backflush in the MTS REM process. we are need to do the reporting point backflush
if we tick against the RP backflush. what will be the effect in the process while confirmation.
i read the sap library . it say like
The reporting point backflush is not possible for make-to-stock repetitive manufacturing.
is it correct.
Thanks
VRaj

Hi mangal,
i did all the setting as you said. but when click on the reporting point.
system thru error
Error reading reporting point information
Message no. RM111
Diagnosis
The repetitive manufacturing profile is set for the reporting point procedure. However, either no reporting points exist for the material or they are incorrect. Two common reasons for this are:
The repetitive manufacturing profile has been changed in the current session.
You have not defined any milestone operations in the routing.
When creating the product cost collector, no reporting points were created.
Procedure
Two alternative solutions are possible:
Assign a repetitive manufacturing profile with no reporting point procedure to the material in the material master record.
Recreate the reporting points by recosting the product cost collector. To do this, the following prerequisites must be met:
In the material master record, in the production version, you must enter a routing under either detailed planning (first priority) or under rate-based planning (second priority).
Milestone operations must exist in this routing. The system ususally automatically creates the reporting points from these milestones when creating a product cost collector or when creating a production version.
how to create the REPORTING POINT

Updation of RG1 register for make-to-stock material

Dear Experts,
Will you please guide me how to update the RG1 register in case of sales for make-to-stock materials?
With regards,
Jhelum Roy

Read SAP help documentation [Update of Registers RG 1 and RG 23 (Part I)|http://help.sap.com/saphelp_erp60_sp/helpdata/en/09/ebf138cdd78a4be10000000a114084/frameset.htm]

Make to order and make to stock scenarios in prodcut costing

Dear Co Experts,
I am new to product costing, in product costing there are two way to estimate the cost of the product by using make to stock and make to order.
Kindly tell me the scenario of make to order and make to stock
In make to order scenario what are the minimum configuration steps are required in controlling, PP, MM, and SD.
In make to stock scenario what are the minimum configuration steps are required in controlling, PP, MM, and SD.
How we will defend the costing variant in make to order scenario
I really appreciate for your early response
pls tell me end to end cycle for both the scenarios
Warm Regards
Venkataswamy

Hi
In Cost Planning in Product Costing,We configure Cost variant
Costing variant is a A tool that contains all control parameters for costing, including
parameters that control how cost estimates are executed and the material
prices or activity prices that are used to valuate the costing items.
In Cost Object Controlling category a)by order b)by period c) sale order
a) BY Order,We create Co Production Order which will be used in Make To Order Production.
b) By Period,We create Product Cost Collector which will be used in Make To Stock or Repetitive Manufacturing
c) By Sale Order,We create sale order with linked to Co production order,We can use Make To Order Scenario.
Re: Repitative manufacturing
www.sap-topjobs.com/SpecialPP/samplepc.doc -
Regards
Edited by: Dublin on Oct 19, 2009 10:02 AM

Make to order and make to stock scenarios

hi .
plz can any one help wt is make to orders scenario and make to stock scenario.
thanq

Hi
In Cost Planning in Product Costing,We configure Cost variant
Costing variant is a A tool that contains all control parameters for costing, including
parameters that control how cost estimates are executed and the material
prices or activity prices that are used to valuate the costing items.
In Cost Object Controlling category a)by order b)by period c) sale order
a) BY Order,We create Co Production Order which will be used in Make To Order Production.
b) By Period,We create Product Cost Collector which will be used in Make To Stock or Repetitive Manufacturing
c) By Sale Order,We create sale order with linked to Co production order,We can use Make To Order Scenario.
Re: Repitative manufacturing
www.sap-topjobs.com/SpecialPP/samplepc.doc -
Regards
Edited by: Dublin on Oct 19, 2009 10:02 AM

How to link the Sales Order to Planned Order in Make-to-Stock scenario

Dear All,
My scenario is Make-to-Stock. Now client wants to know exactly what are the process orders created for Sales order. Please let me know where I will get the link between Sales orders and Process orders in Make-to-Stock scenario.
Regards
Naveen

You will require to work on the requirement type settings for MTS Scenario. The transaction code is OVZH. The requirement type for MTS is KSL.There are various rules for determining the requirement category.
The requirement type can be determined based on the strategy group in the material master / You can also use the item category and MRP type to determine the requirement.
Regards,
Ashok Chauhan

How to use of API for Cancel Sales Orders

Hi....
I want to use API for Cancel Sales Orders. Plz give me advice how we can cancel orders. I know that there is procedure provide in ORACLE APPs (i.e. OE_ORDER_PUB.process_order). But in this procedure i know the how to create and update sales order, but how to Cancel order with the use of this API.
Plz send me soultion as soon as possible. ITS VERY VERY URGENT BASE.
Thanks in Advance.

Hi all,
We are importing Sales Orders on 11.5.9 using OE_Order_PUB.Process_Order API .We have supplied most of the mandatory fields and the same data works from the front end. When we use the API it throws a Ora 20001.
A snapshot of the error message.
SQL> exec pk_process_object.process_order('1o');
Message Count is :2
Message is RA-20001: User in Package OE_Header_Util Procedure Get_Order_Number
Message is :User-Defined Exception in Package OE_Header_Util Procedure
Pre_Write_Process
Return Status is ErrorU
PL/SQL procedure successfully completed.
--------------------------------------------------------------------------------------------

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Some can help me .. Plz . Im try using visa to make payment

Contact iTunes support at the link below.
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MRP for Make to Stock Production 10 Strategy

Dear All,
I am using strategy 10. But when i run MRP system also creates plan order for sales order too. Guide me where i am missing something

check the procurement tab in sale order
whats your requirement type ?
is it KSL, if not select the KSL from drill down.

Using Variant Configuarion for a sales order

Hello
I have most of my solution on VC for sales completed. I am having a small issue on one thing...and I would like to get some suggestions please.
We are not a true MTO site so this really is not a MTO scenario...but there is a requirement to use some of the functionality of VC for the different software options...everything works great except one thing. I have one of my items (this is a power cord and can be a 110 or a 220) that I have as a K class and a stock item(L) and I have the material numbers listed for this in CL24N; all the classes and characteristics, etc are set up. CU50 works correctly, My Class type for this is 300. The sales order works great, etc...my issue is when I post goods issue fo ra sales order, the power cord item does not get reduced in inventory and I need it to. The item does not show up on the sales order, we want it like that; however the power cord needs to be reduced from inventory. Does anyone know a way around this without having to add it as an item in the sales order. We would like to keep it in the Variant Configuration selections.

Thank you for responding, very appreciated. My valuation class and account assignment appear to be correct. If I use this item as a standard line item in the sales order, it will relieve inventory. Only when I am using it as a characteristic will it not relieve inventory, which is what I need it to do.

Forecast Consumption in SNP for Make-to-Order products

We are working on using APO-SNP for Make-to-order products (PlngStrategyGroup = "81" in R/3). We want to achieve normal forecast consumptino on FinishedGoodLevel and generate PlndOrders which shall derive component demand for purchasing (such PlndOrers wont be released to production - they should only function as demand driven on component level)
What we have done so far: Forecast in APO-DP on Finished good level exists and has been released to SNP. The product gets "ciffed" from R/3 into APO material master with planning strategy group "20" (which is basically "make-to-stock") --> we were hoping this would allow us to use "normal" forecast consumption but nothing happens (FCST is not being consumpted by open Sales orders). Within the product view of such products APO is still "realizing" that this is a make-to-order product.
Any other ideas / thoughts what could be done to achieve "normal" forecast consumption on FGI level for make-to-order products in APO-SNP ?
Tks !

I checked in /n/SAPAPO/RRP3 (Product View), unfortunately only FC exists there
Seems that the open Sales Orders from R/3 are being created within another segment (the "element" Tab of RRP3 shows 2 segments:
1) "Make-to-stock" (which contains the FC)
2) "Make-to-order" (which contains the Sales Orders)
That might explain the issue I see (FC and SOs are in different planning segment --> no consumption). Reading about planning segments in the help sounds like I need to find a way to bring Sales Orders for Make-to-Order products into the Make-to-stock segment ... jus a thought .. any idea how to do this ? Does that mean I need to modify the CIF for Sales Order transfer for Make-to-order products ?
Tks
Thomas

Configurable material with make to stock

Hi,
My scenario is like final products Distemper red 1kg, distemper red 5kg and 10kg like this.But Sales order will be Distemper red 1000kg.Based upon the availability of stock customer will get 5kg,10kg Depending upon the pack, price also differs depends upon the pack.
In RG1 register they are updating only Distemper red total stock.
If i go for variant configuration i should create distemper as variant and all finished material as normal and variant should be assigned(distemper red) in mrp 3 view.
Moreover planning also done for only distemper red while packing they will go for different quantity.
For Configurable material PIR can't be done.
So how to proceed further, what about RG1 resister it should not update all pack wise only distemper red total quantity.
Regards,
S.Suresh.

Hi,
As BNR said you need to work with Material Variants for having Variant Configuration with Make to Stock.
Pls. find the helpful details for maintaining Material Variants :
Maintaining Material Master Records for Variants
Prerequisites
A configurable material exists, for which you create a material variant. The configurable material
has all the necessary settings in the configuration profile, class assignment, dependencies, and
so on.
Procedure
1. From the material master menu, choose Material   Create general   Immediately.
Enter a material number, an industry sector, and a material type for materials kept in
stock.
You must process the following views:
Basic Data*
Sales Data*
MRP Data*
For material variants, you maintain the usual material master data, such as
availability check, strategy groups, and so on. This documentation describes the data
that you need to maintain specifically for material variants.
2. Maintain the required basic data.
Do not select Material is configurable for a material variant.
In the basic data, you can link the material variant to a configurable material. This
configuration applies to all plants. To manufacture the material variant in-house, you
must maintain the variant at plant level, so that BOMs, routings, and so on can be
determined. Cross-plant variants can be used in Purchasing, but are not supported in
Sales.
3. Maintain the sales data.
You can only use the variant in sales orders if you maintain sales data for the variant.
4. In the MRP data, enter a configurable material for configuring the variant at plant level.
5. Choose Configure variant.
You see the value assignment screen with the characteristics of the configurable
material.
Configure the variant.
6. Once you have maintained all the data, save your material variant.
Bill of Material (BOM)
To do a requirements explosion for a configured material, you must maintain the data in the
material master record and link a BOM to the configured material.
If the material of the material variant is the same as the configurable material, the link
is already there.
You can either create a BOM especially for the configured material (perhaps using the copy from
function) or allocate the configured material to the BOM for the configurable product. The second
option is the more common solution.
If you allocate the configured material to the BOM for the configurable product, the BOM for the
configurable product is interpreted and exploded according to the characteristic values assigned.
The interpretation includes the processing of selection conditions and the setting of field values in
BOM items according to the relevant actions.
Allocating a Configured Material to a BOM
To allocate the configured material to the BOM of the configurable product, proceed as follows:
1. From the bills of material menu, choose Bills of material   Material BOM   Alloc. config.
mat.   Create.
2. Enter the name of your configured material in the Material field.
You see a screen on which your configured material is shown as the first allocation.
Select the allocation and choose the All allocs for BOM function to see all the materials
allocated to this BOM.
3. Save your allocation.
Task List
To produce a configured material, you need to allocate a task list to the configurable material
once you have created the material master.
If the material of the material variant is the same as the configurable material, the link
is already there.
You can either create a task list especially for the configured material (perhaps using the copy
from function) or allocate the configured material to the task list for the configurable product in the
task list maintenance function. The second option is the more common solution. If you allocate
the configured material to the task list for the configurable product, the task list for the
configurable product is interpreted and exploded in the production order according to the
characteristic values assigned. The interpretation includes the processing of selection conditions
in the operations or activities, sub-operations, sequences of operations, and production
resources/tools (PRTs).
Allocating a Task List to a Configured Material
To allocate the configured material to the task list of the configurable material, proceed as
follows:
1. From the routings menu, choose Routings   Routing   Change.
2. Enter the number of the configurable material.
3. Choose Goto   Overview.
4. Choose Routing   Material allocation   New entries and enter the number of the
configured material you want to allocate to the task list.
5. Save your allocation.
Creating Cross-Plant Material Variants
Use
For material variants that are procured externally, you can define the assignment to a
configurable material in the basic data of the material master, because no plant-specific data
needs to be determined for these variants.
Procedure
1. In the material master menu, choose Material   Create (General)   Immediately.
Enter a material number, an industry sector, and a material type for materials kept in
stock.
Select the views that you want to process.
2. Maintain the required basic data.
Do not select Material is configurable for a material variant.
3. Under Client-specific configuration, enter the configurable material of which you are
creating a variant.
4. Choose Configure variant.
You see the value assignment screen with the characteristics of the configurable
material.
Configure the variant.
5. Once you have maintained all the data, save your material variant.
Result
The variant can be entered in a purchase order. The configuration of the variant is copied from
the material master.
Cross-plant material variants can be used in Purchasing. However, they are not
supported in Sales.
Strategies for Variants
Definition
Low Variance
This section describes how to plan products that have a practical limited number of possible
combinations of characteristics and characteristic values. Technically speaking this section
describes the use of variants to sell configurable materials.
Variants can be used to facilitate the work with configurable materials. Variants of a configurable
material are, for example, defined to prefabricate frequently required configurations and place
them in stock, which is why variants were formerly called stockable types.
For some configurable materials, it may be difficult to determine the variants of a configurable
material. To use the strategies for variants effectively you must have an estimate of future
consumption for each variant.
If the configuration is not changed during the Sales Order stage, production can occur at the
Production Before Sales Order stage. Then the customers must purchase the variants as they
are or as they were planned. The benefit is that the products can be shipped immediately to the
customers, if they are in stock.
Make to Stock Production for Variants
Variants can be planned on the finished product level using any make-to-stock strategy, such as
Planning with Final Assembly (40) or Net Requirements Planning (10)
The planning of variants with make-to-stock strategies combines the advantages of make-tostock
production (very short delivery time) with the advantages of variant configuration (one BOM
and one routing for a whole product family).
Make to Order Production for Variants
Variants can be planned on the finished product level using any make-to-order strategy, such as
Planning w/o Final Assembly (50) or Planning with a Planning Material (60)
The planning of variants with make-to-order strategies combines the advantages of make-toorder
production (planning without final assembly or cost tracking on the sales order level) with
the advantages of variant configuration (one BOM and one routing for a whole product family).
Integration
Hope this helps.
Regards,
Tejas

VMS for OEM : Production Order

Hi All,
VMS has all the features required for Automobile Importers. In the 'Make to Stock - Scenario ' , we can create vehicle , purhcase order and get vehicle from the Vendor . But implementing VMS for OEM is not that simple.
Could any VMS expert advise the best solution for the given below scenario.
Client : An Automobile manufacturer
Scenario: "Make to stock" : Manufactured in the Production Centre of the same company ( kindly note vehicle it is not purchased from vendor ).
I need to create Production order to manufacture a vehicle .
The solution I found here is
a) Create Vehicle
2) Create Purchase Order
3) Create a resevation Sales Order
4) Run MRP , get planned Order
5) Planned Order converted to Production Order.
Please advise anyone has better approach.
Thanks and Regards
Tom Cruiser

Tom,
it's easy to implement a new ordering system based on SAP VMS . I've seen some customers who did that .... and all had different approaches. Some were complex, some were suprisingly easy.
It depends .... it really depends on the complete scenario at the customer. Is the customer going to run the production process in the same SAP box? Or is production going to be in searate systems and the VMS is used to "just" handle all vehicles as a central instance?
Your described process is one way, esp. if all is in one box.
An other way is to send vehicle details to the (e.g. model-based selected) production system, and manage the purchase (doc flow) when the vehicle is finished and being moved out of production stock.
Other experiences?
Tell us!
Ute

Explanation on use of Strategies for Make to Order/ Make to stock scenario

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