Make to order and make to stock

[Former Member]

I need some helpful document on make to order and make to stock and the MRP linkage to both of these scenarios. I mean to say....what are the MRP's possible for both make to order and make to stock???

Please give the explanation for both of the scenarios.

[Former Member · Accepted solution]

Hi Pankaj,

Thanks for the reply. I just want to ask one more qusetion.

What i am thinking is--

In case if we use MTO scenario and we got 2 sales order for different items.Then we Run the simple MRP for the order quantity only. After running theMRP, we will get the 2 PR's. In MRP we will not change the PR to the PO but we will enter both of the PR's no. in ME21N and make a single PO.

so, in this will there be any implications? Because we have made single PO for 2 PR's in ME21N not in MRP.

Please suggest me the same.

points will be awarded for the same.

[csaba_szommer · Accepted solution]

Hi Neeraj,

It's your own decision how to create PO from PRs. You can convert PR into PO in MD04, you can use ME57-ME58 / ME59 (based on your master data), you can use ME21N.

You should decide which option to use.

But it seems reasonable to create only one PO for one vendor instead of converting many PRs to separate POs.

Regards,

Csaba

[pankaj_singh9 · Accepted solution]

Yes, you can also do as per the way you are thinking but the method which I have suggested need not require any additional steps for MRP Run and also doesn't require the MRP config.

[Former Member]

Basically i am working on a trading Client. They need to have the linkage of PO to SO, that we can get through the Make to order ,as MTO is order driven. But the problem is that they want to create a single PO (the quantity in PO will be the addition of 2-3 SO we received from the customer). They also need to have the Purchase requisition creation througn MRP based on the sales order.

So in this case for which MRP type shall i go?? Could you please suggest me on this.

Points will be awarded for the helpful answer.

Edited by: Neeraj Saini on Oct 9, 2008 6:13 AM

[pankaj_singh9]

Hi,

Instead of going for MRP Run and all other MRP relevant settings, you can control this whole process in SD Module only. I am suggesting this because you are dealing with only Trading Goods not manufacturing process so there is not any dependent requirement calculation.

Proceed as suggested;

1. VOV6 - Configure the Sales Schedule line category as following;

Delivery block - Blank
Movement Type         601   GD goods issue:delvy
Movement type 1-step - Blank
Order type            NB    Purchase requisition
Item category         0     Standard
Acct.assig.cat.       M     Ind. cust. w/o KD-CO
Also activate "Item rel.f.dlv." and "P.req.del.sched"

Use this Schedule line category in your Sales Order. And also use Requirement Type as "KE" in "Procurement" Tab.

Once you Create & Save Sales Order (VA01), system will generate the Purchase Requisition automatically (Check in Sales Order Display - VA03, under "Schedule Lines" Tab or in report ME5A0

Then convert these PRs to Single PO in ME21N and do further GR (MIGO), LIV (MIRO).

Then do Delivery (VL01N) and Billing (VF01) for the same.

[former_member581212]

hi,

> I don't think it is possible via MRP....you can do that manually if the sales order is made for the same vendor for all three...Pls check...Via MRP there will be generation of three PO's only...or Make one sales order for all the requirement...so that one PO willl be generated...

MRP is possible with both of them....

MAKE TO STOCK:

This business scenario enables quick and effective processing of those sales orders that use configurable materials that are already available as material variants in the warehouse. It comprises entry of the sales order using fast entry of characteristics, online order promising, delivery of the material, and the delivery-related billing.

To meet the customeru2019s requirement, you must carry out job processing in your plant. Due to the minimal expense involved, it is not necessary to create a production order. However, you may have to create a production order, for example, if the dimensions of the material do not meet the customer's requirements and you have to trim the material to suit.

You can combine this business scenario with "Manufacturing Scheduling and Execution Make-to-Stock (ERP)". The latter contains the make-to-stock production required in this business scenario.

Characteristics of a Make-to-Stock (MTS) process are commodity based end products, production prior to sales order based on forecast, end products sold from inventory, controlling of inventory is critical and distribution and warehousing of end product is the norm.

Increasing Revenue

Improve capacity utilization

Outsource excess capacity

Lowering Working Capital

Improve capacity utilization

Increase inventory turns

Lower work-in-process inventory

Reduce inventory carrying costs

Visibility to vendor/supplier inventory

Improving Customer Service

Better service levels

Collaborate with business partners

Reduce late orders

Reduce order lead-time

Reducing Operating Costs & Increasing Efficiency

Improve procurement processes

Lower logistics costs

Reduce administration, improve business processes

Reduce inventory levels

Reduce transaction costs

Please visit : http://help.sap.com/saphelp_ides/helpdata/en/51/9532c0a1fa11d189ba0000e829fbbd/content.htm

MAKE TO ORDER:

Check the link:

http://help.sap.com/bp_bblibrary/500/html/J66_MTOQPOP_EN_IN.htm

Regards

Priyanka.P

Edited by: Priyanka Paltanwale on Oct 9, 2008 6:01 AM