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Planning strategy

can anybody explain when i can use planning strategy 10,11 with example. Don't suggest any link or SAP library.

Thx in advance.

Former Member
Former Member replied

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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