Diffrence between planning strategy 40 and 50

[Former Member]

Hi,

pl. tell me what is main difference between planning strategy 40 and 50.

Regards

Lal Bahadur Yadav

[Former Member · Accepted solution]

Hi,

Strategy 40:

It is make to stock. Without sales order, with PIR you can initiate the production process. When sale comes, you can issue the material from stock. System will consider the stock when sale order comes.

Strategy 50:

It is make to order at FG level, make to stock at HALB level.

With PIR, you can initiate the production process for HALB and make stock.

But without sales order, can not initiate the production process for FG (customer specific). You can able to create PIR for FG but after MRP run planned order not able to convert to prod order.

When sale comes, it will consmes the FG PIR & you can do production process. FG planned order will consume the stock from HALB level.

Regards,

Dharma

[Former Member]

Thanks

[Former Member]

HI,

The difference in between strategy 40 & 50 is as below -

Head level - 40 is used as planning with final assembly in MTS & 50 is used as planning w/o final assembly in MTO.

Scenario - 40 is for Make to stock & 50 is for make to order.

Planned order - In strategy 40 planned order is of regular type i.e LA for finished product & will be converted to production order. In Stratey 50 planned order for finished product will be of VP type which is non convertible to prod order. Only when sales order is entered for FG then in next MRP run planned order of (with same sales order Qty) LA type will be generated.

Availability check - Strategy 40 does not require specific value in Availability check field. In 50 it requires specific value (normaly checking rule AE is used).

May this will help you.

Regards,

Ashish

[Former Member]

Planning w/o Final Assembly (50)

Use this planning strategy when the main value-added process is final assembly. It is a MTO stg Once you get the order from customer, system will reduce the PIR qty as well as planned order qty created. Here the difference is the planned order created for customer order is sales order assigned planned order.

Planning with Final Assembly (40)

Planned independent requirements are consumed by incoming sales orders so that the master plan is always adjusted to suit the current requirements situation. This means that the important feature of this planning strategy is that you can react quickly to customersu2019 requirements. The smoothing of the master plan is less important.

In this case the planned order created is nothing to do with sales order crested.

[Former Member]

Hi

the main diffrence b/n these two strategies are ,

planing with final assembly where we keep the products in stock before sales order comes ,once the sales order comes ,the sales order will consume the PIR,

in 50 strategy ,before sale order triggers ,we will procure the the things and we produce the sub assemiblies in stock in advance ,once the sales order comes ,final assembly will be started .

[rupesh_brahmankar3]

Dear,

Startegy 40: Make to stock startegy, here finished products are produced against pir (forecast) and when we receive the s/o, s/o will consume the pir. example: finished products are manufactured without s/o and when we recieve the s/o they wil be shipped to customer

Strategy50: PIRs are entered for the final assembly. On MRP - Final assembly planned orders are not convertible to prod orders. However the lower level assemblies planned order are convertible to pord/ pur req. Final assemble produced only on rceipt of sale order. Advantage is that the components are procured earlier and kept ready before sales orders arrive.

Strategy 50 is Make to order startegy, here sub assemblies are manufacture against pir (forecast), when we recieve the s/o for the finished/final product, all the manufactures sub assemblies will be assembled finally with an extra value added operation and sent to customer.

Please refer this liank also,

[Planning strategy 40 and 50|http://help.sap.com/saphelp_45b/helpdata/en/cb/7f9b7043b711d189410000e829fbbd/frameset.htm]

[Thread|/message/3719367#3719367 [original link is broken]]

Regards,

R.Brahmankar

Edited by: R Brahmankar on Oct 16, 2008 4:58 PM