Regarding planning strategies

Question

Hi,
Dear Experts,
I have some confusion about strategies which i want to discuss which is as follows,
For MTS -10
      MTD-20
      Production with final assemble-40 etc.
Is is correct that i am using for make to stock,
for ROH-10, SFG-10, FG-40.
if not please tell me what are the others which i have to use also want to know more about how a industry choose a planning strategy.
Your suggesstions are weelcome.
Thank you.

Answer 1

Hi,
Make to stock: These are the following strategies 10,30,40 and 70 used in MTS
In a made-to-stock scenario, the incoming customer requests are fulfilled from the inventory. The made-to-stock products are normally the consumer products or products which have a monopoly market and are sold out of the existing inventory. Such products are developed and produced continuously over the years till the product comes to the end of its life cycle.
In such scenarios, the shop floor or the production team never knows, for whom the product is being produced. The customer demands and the market situations can only be forecasted and used as a basis for future production. In SAP the forecasted quantity is evidently used in a form of planned-independent-requirement.
Made-to-stock production quantities are entered in SAP through the use of u201CPlanned independent requirementsu201D (transaction code MD61) which are subsequently planned by SAP MRP run. The planned independent requirements can be entered manually or the requirement can be pulled in from forecast or it can be pulled in from the sales and operation information structures (information structures which carry the sales information at levels defined by the organization).
Make to Order:  Strategy no 20 and 50 used in MTO
In a make-to-order scenario, the incoming customer requests are accepted and produced thereafter and ultimately delivered to the very customer. The example of such a scenario can be high end products like jewelry or high end equipments or very costly product. These products are normally configured by the customer and the order is produced according to the customer requirements or by the design provided by the customer. The Sales order is created or configured according to the customer requirements and passed on to the production team.
In such a scenario, the tracking of the sales order from its creation to planning to production to inventorying to delivery can be easily tracked unlike in made-to-stock scenarios, where the incoming sales orders are not tracked in the plant, but are fulfilled by the existing stocks.
Coming to your question, using of strategies is purely depends on the business requirement. If it is make to stock, then you can use the same way you have posted (ROH-10, SFG-10, FG-40)
Hope it clears your doubt.
Regards / US