on 09-19-2008 8:09 AM
can anybody explain when i can use planning strategy 10,11 with example. Don't suggest any link or SAP library.
Thx in advance.
Hi,
Pls. find the details about strategy 10 & 11 as below :
_Net Requirements Planning (10)_
Purpose
This planning strategy is particularly useful in mass production environments; it is often combined
with repetitive manufacturing. You should choose this strategy if you want production to be
determined by a production plan (Demand Management) and if you do not want sales orders to
influence production directly. One of the most important features of this planning strategy is that it
enables you to smooth the demand program.
Examples from Industry
Strategy 10 is used in the customer packaged goods industry because it is possible to
plan the demand for ice cream very easily, for example, while a single order should not
affect production.
Strategy 10 is also used for products with seasonal demand where production needs to
be smoothed.
Prerequisites
You must maintain the following master data for the finished product:
Strategy group 10 on the MRP screen.
Item category group (for example, NORM) on the Sales Organization screen.
Availability check field in Customizing so that you perform an availability check without
replenishment lead times (in the standard system, you must enter 02 here). For more
information see the Other Areas section below.
SAP AG Demand Management (PP-MP-DEM)
Net Requirements Planning (10)
April 2001 25
Process Flow
SSaalleess oorrddeerr Independent
requirements
Independent
requirements
Production
Push
Production
Push
Warehouse stock
Finished product
1
2
3 Consumption
5
Reduction
1. Procurement quantities can be planned relatively effectively by means of planned
independent requirements. It is possible to use information from the sales forecast, or
from the Sales Information System, or other planning tools to plan production quantities.
This means that production and procurement of the required components is triggered
before receipt of sales orders.
2. Procurement is determined by planned independent requirements only. This lends itself
to a smoothing of production, which means you can create a smooth production plan that
cannot be affected by irregular sales orders.
3. An accurate availability check is performed according to ATP logic during sales order
processing.
4. Sales orders can be displayed for information purposes only; they do not affect
production quantities. Goods are sold from stock in this strategy.
5. The planned independent requirements are reduced at goods issue for the delivery. This
means that you can compare the planned independent requirements situation with the
actual customer requirements.
6. Planned independent requirements that are left unreduced increase the warehouse stock
of the finished product and cause procurement to be decreased or not to take place at all
in the next period, due to the netting.
7. If you want the system to reduce future planned independent requirements when it
makes withdrawals for unplanned sales orders, you must maintain the appropriate
consumption period.
Other Areas
Availability Check
You must use an availability check that checks without RLT. See Availability Check [Page 157].
To switch off the display of the orders, set the No MRP indicator to 2 in Customizing (choose
Sales and Distribution Basic Functions Availability Check and Transfer of Requirements
Transfer of Requirements Define Requirements Classes).
Do not leave the No MRP indicator field blank. If the requirement is transferred, the
consequences may be serious.
This IMG activity is linked to LSF in Customizing under Sales and Distribution Basic Functions
Availability Check and Transfer of Requirements Transfer of Requirements Define
requirements types.
SAP AG Demand Management (PP-MP-DEM)
Sample Scenario: Strategy 10
April 2001 27
Sample Scenario: Strategy 10
Process Flow
This example is based on a production plan in which 100 pieces are planned for <reqdat1>,
<reqdat2>, and <reqdat1>.
Stage 1: Demand Management
1. In this scenario, planned independent requirements are created as follows for the
production plan. For information on how to create planned independent requirements,
see Creating Planned Independent Requirements with Reference [Page 201] or Creating
Planned Independent Requirements Without a Reference [Page 202].
Period indicator Reqmts date Planned qty Value
T (= day) <reqdat1> 100 10,000.00
T (= day) <reqdat2> 100 10,000.00
T (= day) <reqdat3> 100 10,000.00
The system finds requirements type LSF because the strategy group has been set to 10. See
the Table of Planning Strategy Assignments [Page 147].
2. The requirements are passed on to MRP. The stock/requirements list (Logistics
Production MRP Evaluations Stock/reqmts list) displays the following
information:
Date MRP element MRP element data Received/
required
quantity
Available quantity
<today> Stock 0
<reqdat1> IndReq LSF 100 - 100 -
<reqdat2> IndReq LSF 100 - 200 -
<reqdat3> IndReq LSF 100 - 300 -
Stage 2: Procurement Before Sales
1. Procurement requisitions are created in the MRP run (Logistics Production MRP
Total planning). The stock/requirements list displays the following information:
Date MRP element MRP element data Received/
required
quantity
Available quantity
Demand Management (PP-MP-DEM) SAP AG
Sample Scenario: Strategy 10
28 April 2001
<today> Stock 0
<reqdat1> PlOrd. 1234/Stck 100 100
<reqdat1> IndReq LSF 100 - 0
<reqdat2> PlOrd. 1235/Stck 100 100
<reqdat2> IndReq LSF 100 - 0
<reqdat3> PlOrd. 1236/Stck 100 100
<reqdat3> IndReq LSF 100 - 0
These procurement requisitions are the starting point for production or external
procurement. Various possibilities exist for handling the procurement process in the R/3
System. One option is to convert the planned order into a production order, then release
the production order and a goods receipt of the yield quantity. It is also possible,
however, to use returns or other goods movements for make-to-stock production.
2. After goods receipt for the order, the stock/requirements list displays the following
information:
Date MRP element MRP element data Received/
required
quantity
Available quantity
<today> Stock 100
<reqdat1> IndReq LSF 100 - 0
<reqdat2> PlOrd. 1235/Stck 100 + 100
<reqdat2> IndReq LSF 100 - 0
<reqdat3> PlOrd. 1236/Stck 100 + 100
<reqdat3> IndReq LSF 100 - 0
Stage 3: Sales Order
1. A sales order is created for 90 units (Logistics Sales and distribution Sales
Order Create).
Note the following:
It is possible to confirm any quantity up to the stock quantity (100 pieces in this example)
under Edit Check availability.
The system will find the requirement type KSL (under the Procurement type tab title)
because the strategy group has been set to 10 and it is not possible to select another
requirement type. The table of planning strategy assignments [Page 147] shows this
mechanism.
The system finds the schedule line category CP and the item category TAN because the
item category group was set to NORM.
SAP AG Demand Management (PP-MP-DEM)
Sample Scenario: Strategy 10
April 2001 29
2. After the sales order has been entered, the stock/requirements list displays the following
information:
Date MRP element MRP element data Received/
required
quantity
Available quantity
<today> Stock 100
<today> Order 327/010/01 90 -
<reqdat1> IndReq LSF 100 - 0
<reqdat2> PlOrd. 1235/Stck 100 + 100
<reqdat2> IndReq LSF 100 - 0
<reqdat3> PlOrd. 1236/Stck 100 + 100
<reqdat3> IndReq LSF 100 - 0
3. In net requirements planning according to strategy 10, the order does not create a
requirement; the sales order is displayed, but does not generate planned orders. In the
above table, you can see that the order does not reduce the Available quantity in the
right-hand column which remains at 100 pieces. When you perform the availability check
(in the sales order or in the stock/requirements list, choose List Calculate ATP
quantity), only 10 pieces are available.
4. The planned quantity is still 100 pieces. The source of the requirement is the
independent requirement alone. The planned independent requirement is unchanged,
and no allocation is carried out.
Stage 4: Procurement After Sales
This stage does not apply to this strategy.
Stage 5: Goods Issue for Delivery and Reduction of Planned Independent Requirements
After goods issue for the delivery (Logistics Sales and distribution Shipping Delivery
Create), the stock/requirements list displays the following information:
Date MRP element MRP element data Received/
required
quantity
Available quantity
<today> Stock 10
<reqdat1> IndReq LSF 10 - 0
<reqdat2> PlOrd. 1235/Stck 100 + 100
<reqdat2> IndReq LSF 100 - 0
<reqdat3> PlOrd. 1236/Stck 100 + 100
<reqdat3> IndReq LSF 100 - 0
Demand Management (PP-MP-DEM) SAP AG
Sample Scenario: Strategy 10
30 April 2001
The planned independent requirement is reduced during processing of the goods issue. Old
quantities can still be retrieved by using either Goto Schedule line history in Demand
Management, or by using the total requirements list (Evaluations Display total requirements
from the Demand Management menu). The quantities issued are displayed in the Withdrawal
quantity field.
The system always reduces the oldest planned independent requirements unless the
consumption fields (Consumption mode, Fwd consumption per., Bwd consumption per.) are
maintained in the material master or in the MRP group.
_Gross Requirements Planning (11)_
Purpose
The make-to-stock strategy gross requirements planning is particularly useful in mass
production environments; it is often combined with repetitive manufacturing. This strategy is
particularly useful if you need to produce, regardless of whether you have stock or not. For
instance, steel or cement producers might want to use this strategy because they cannot shut
down production; a blast furnace or a cement factory must continue to produce, even if this
means having to produce to stock.
This strategy is also frequently used if there is a Material Requirements Planning system in a
legacy system that needs to be linked to R/3 which serves as a production execution system.
The legacy system calculates a specific production plan, which has to be executed, regardless of
the stock situation in R/3.
Examples from Industry
Heavy-duty industries such as steel manufacturing (blast furnace) and the cement industry.
Prerequisites
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). For more details,
see the Other Areas section in Production by Lot Size (30) [Page 20].
Process Flow
For a detailed example of the entire process, see Sample Scenario: Strategy 11 [Page 36].
This planning strategy is to some extent similar to Net Requirements Planning (10) [Page 24].
However, the following differences exist:
Strategy 10 11
Stock is taken into account Yes No
Reduction of planned
independent requirements
takes place during u2026
u2026 goods issue for the
delivery
... goods receipt for a
production order (discrete
production), for a planned
order (repetitive
manufacturing), or for a
purchase order (trading
goods).
SAP AG Demand Management (PP-MP-DEM)
Gross Requirements Planning (11)
April 2001 35
Gross requirements planning also has the following features in common with net requirements
planning (10):
Production quantities can be planned relatively effectively by means of planned
independent requirements. It is possible to use information from the Sales Information
System, flexible planning, or other planning tools to plan production quantities. This
means that production and procurement of the required components is triggered before
the sales order stage.
Individual sales orders, which can be somewhat irregular, do not affect production.
An accurate availability check is performed according to ATP logic during sales order
processing.
It is possible to perform a lot size "optimization" during planning so that you always plan
convenient lot sizes in Demand Management or during the MRP run using lot size and/or
rounding keys.
Other Areas
Availability Check
You must work with an availability check that checks without checking the replenishment lead
time. See Availability Check [Page 157].
Demand Management (PP-MP-DEM) SAP AG
Sample Scenario: Strategy 11
36 April 2001
Sample Scenario: Strategy 11
Process Flow
This example is based on a production plan in which 100 pieces are planned for each
requirements date <reqdat1>, <reqdat2>, and <reqdat1>.
Stage 1: Demand Management
1. In this scenario, planned independent requirements are created as shown in the
following table for the production plan. For information on how to create planned
independent requirements, see Creating Planned Independent Requirements with
Reference [Page 201] or Creating Planned Independent Requirements Without a
Reference [Page 202].
Period indicator Reqmts date Planned qty Value
T (= day) <reqdat1> 100 10,000.00
T (= day) <reqdat2> 100 10,000.00
T (= day) <reqdat3> 100 10,000.00
The system finds requirements type BSF because the strategy group has been set to 11.
See the Table of Planning Strategy Assignments [Page 147].
2. The requirements are passed on to MRP. The stock/requirements list (Logistics
Production MRP Evaluations Stock/reqmts list) displays the following
information:
Date MRP element MRP element
data
Received/
required
quantity
Available
quantity
<today> Stock 0
<today> -
Gross reqmts plan
<reqdat1> IndReq BSF 100 - 100 -
<reqdat2> IndReq BSF 100 - 200 -
<reqdat3> IndReq BSF 100 - 300 -
Entry of the independent requirements is very similar to that in strategy 10 (net
requirements planning). The only difference is that the requirements have requirements
type BSF because the strategy group has been set to 11. See the table of planning
strategy assignments [Page 147].
SAP AG Demand Management (PP-MP-DEM)
Sample Scenario: Strategy 11
April 2001 37
Note there is now a special segment in the stock/requirements list; this is used for
planning purposes only.
Stage 2: Procurement Before Sales
1. Procurement requisitions are created in the MRP run (Logistics Production MRP
Total planning). The stock/requirements list displays the following information:
Date MRP element MRP element data Received/
required
quantity
Available
quantity
<today> Stock 0
<today> -
Gross reqmts plan
<reqdat1> PlOrd. 0001234/Stck 100 100
<reqdat1> IndReq BSF 100 - 0
<reqdat2> PlOrd. 0001235/Stck 100 100
<reqdat2> IndReq BSF 100 - 0
<reqdat3> PlOrd. 0001236/Stck 100 100
<reqdat3> IndReq BSF 100 - 0
These procurement requisitions are the starting point for production or external
procurement. Various possibilities exist for handling the procurement process in the R/3
System. One option would be to convert the planned order into a production order, then
release the production order and a goods receipt of the yield quantity. It is also possible,
however, to use returns or other goods movements for make-to-stock production.
2. After goods receipt of 90 pieces of the order (you can work with all kinds of orders, such
as production orders, run schedule headers in repetitive manufacturing, and purchase
orders), the stock/requirements list displays the following information:
Date MRP element MRP element data Received/
required
quantity
Available
quantity
<today> Stock 90
<today> -
Gross reqmts plan
<reqdat1> PrdOrd. 1000060/PP01/PD 10 10
<reqdat1> IndReq BSF 10 - 0
<reqdat2> PlOrd. 0001235/Stck 100 100
<reqdat2> IndReq BSF 100 - 0
Demand Management (PP-MP-DEM) SAP AG
Sample Scenario: Strategy 11
38 April 2001
<reqdat3> PlOrd. 0001236/Stck 100 100
<reqdat3> IndReq BSF 100 - 0
3. The Demand Management screen displays the following information:
Period indicator Reqmts date Planned qty Withdrawal qty
T (= day) <reqdat1> 10 90
T (= day) <reqdat2> 100
T (= day) <reqdat3> 100
The planned independent requirement is reduced during processing of the goods receipt.
Old quantities can still be accessed via Goto Schedule line history, or by using the
total requirements list (Evaluations Display total requirements) in Demand
Management. The quantities received are displayed in the Withdrawal qty field.
The system always reduces the oldest planned independent requirements unless the
consumption fields (Consumption mode, Fwd consumption per., Bwd consumption per.)
are maintained in the material master or in the MRP group.
The Demand quantity as seen in the planned independent requirements, is reduced
when the goods receipt is posted for the production order. To view the original demand
quantity in Demand Management (choose Logistics Production Master Planning
Demand Management Planned Ind. Reqmnts Display) choose Goto
schedule line history, or choose Environment Display total reqmnts. In this view the
total demand is the sum of the goods movement quantity plus the Total quantity.
Stage 3: Sales Order
1. You create a sales order by choosing Logistics Sales and distribution Sales
Order Create).
Note the following:
It is possible to confirm any quantity up to the stock quantity (100 pieces in this example).
Choose Goto Item Schedule lines Quantities/dates.
The system finds the requirement type KSL (under the Procurement tab title) because
the strategy group has been set to 11.
The Table of Planning Strategy Assignments [Page 147] shows this mechanism.
The system finds the schedule line category CP and the item category TAN because the
item category group was set to NORM.
2. After the sales order has been entered, the stock/requirements list displays the following
information:
SAP AG Demand Management (PP-MP-DEM)
Sample Scenario: Strategy 11
April 2001 39
Date MRP element MRP element data Received/
required
quantity
Available
quantity
<today> Stock 90
<today> Order 0000337/0010/001 90 -
<today> -
Gross reqmts plan
<reqdat1> PrdOrd. 1000060/pp01/PD 10 10
<reqdat1> IndReq BSF 10 - 0
<reqdat2> PlOrd. 0001235/Stck 100 100
<reqdat2> IndReq BSF 100 - 0
<reqdat3> PlOrd. 0001236/Stck 100 100
<reqdat3> IndReq BSF 100 - 0
3. In strategy 11, the order does not create a requirement; it is only displayed. It is possible
to hide the display of the orders as described in the Other Areas section of Net
Requirements Planning (10) [Page 24]. In the above table, you can see that the order
does not reduce the Available quantity in the right-hand column, which remains at 90
pieces. When you perform the availability check (in the sales order or in the
stock/requirements list by choosing List Calculate ATP quantity), however, no stock is
available.
Stage 4: Procurement After Sales
This does not apply to this strategy.
Stage 5: Goods Issue for Delivery
After delivery (choose Logistics Sales and distribution Shipping Delivery Create) and
goods issue, the stock/requirements list shows only the remaining planned independent
requirements and their associated planned orders.
Hope this helps.
Regards,
Tejas
Edited by: Tejas Pujara on Sep 19, 2008 9:15 AM
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Thx for clear my concept of Strategy.
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Hi,
Strategy group 10 on the MRP screen.
Item category group (for example, NORM) on the Sales Organization screen.
Availability check field in Customizing so that you perform an availability check
without replenishment lead times (in the standard system, you must enter 02 here).
In net requirements planning according to strategy 10, the order does not create a requirement; the sales order is displayed, but does not generate planned orders.
The planned independent requirement is reduced during processing of the goods issue.
Old quantities can still be retrieved by using either
Goto -> Schedule line history in Demand Management, or by using the total requirements list
(Evaluations -> Display total requirements from the Demand Management menu).
The quantities issued are displayed in the Withdrawal quantity field.
The system always reduces the oldest planned independent requirements unless the consumption fields (Consumption mode, Fwd consumption per., Bwd consumption per.) are maintained in the material master or in the MRP group.
11 BSF Gross planned independent requirements KSL Sale from stock without independent
requirement reduction
Strategy 11 in summary :-
1. Sales Order creation - no impact.
2. Goods Receipt - minus the quantity for the oldest planned independent in demand management.
For e.g. if PIR is 100 and delivery 90, PIR becomes 10 (withdrawal 90).
3. Delivery - no impact as delivery is issue from sales order.
This strategy is particularly useful if you need to produce, regardless of whether you have stock or not. For instance, steel or cement producers might want to use this strategy because they cannot shut down production; a blast furnace or a cement factory must continue to produce, even if this means having to produce to stock.
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).
Strategy 10 11
Stock is taken into account Yes No
Reduction of planned independent
requirements takes place during u2026 u2026 goods issue for ... goods receipt for a production
the delivery order (discrete production),
for a planned order (repetitive
manufacturing), or for a purchase
order (trading goods).
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Hi,
Strategy 10: Net requirement planning
i. This strategy is is used in FMCG sector -like seasonal product, ice cream, beverges etc.
ii. In net reqirement calculation the wharehouse stock is considered.
iii. PIR will reduce after GI for the sales order.
Strategy 11.
i. This startegy is used in mass production envirnment like cement , steel industry iresepetive of warehouse stock ,becoz in steel , cement industry once the killen or furnaces start it will be continue , coz it takes lot of time to start and lot of fuel ..
ii. In this strategy PIR will reduce at the time of GR of production order
iii.The system will not consider the warehouse stock means comparision of PIR with the plant stock, irrespective with plant stock it calculte the net requirement.
Please refermy reply in this thread also,
[ Planning strategy|https://forums.sdn.sap.com/click.jspa?searchID=16488576&messageID=6080555]
Regards,
R.Brahmankar
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