Make to stock with CIR

[Former Member]

Hi expert,

I have a question for you all. We used to work with Make To Order logic for our production therefore we used to have a SO which was creating word orders and so on... We now need to move into a Make to stock logic as we are externalizing our production to a vendor. This means that we need to place a PO with this vendor and we also need to make it without any SO reference just because we still don't have it but we need to keep our vendor making stock for us. I don't really know how to make it. I need to produce a sort of dummy SO which could be a CIR? I understand the CIR logic cannot be used for Make to Stock order? Is that right? What happen if I use the PIR logic for this purpose? Is it going to work?

Many Thanks for your help.

[Former Member · Accepted solution]

Leonido,

You placed this question in an APO forum, but you have asked questions that imply that your planning is done in ECC.  Please confirm if you are planning in APO or in ECC.

We now need to move into a Make to stock logic as we are externalizing our production to a vendor

This is not a SAP technical requirement, I will assume you have additional business requirements that cause you to change to MTS.  MTO is compatible with Purchasing.  The most common reason to use MTS is that you wish to build Finished goods stock before the Sales Orders arrive, to give you better compliance to customer's request dates.  In MTS you generally create Planned Independent Requirements, run MRP, and release the resulting procurement proposals to get your your vendors building stock for you.

In general, the most common method to change from MTO to MTS for a sellable material (FERT or HAWA) is to change the Planning strategy in the Material Master from an MTO strategy to an MTS strategy.

Naturally, you will have to come up with a transition plan.  What do you do with your existing MTO production orders, what do you do with your existing MTO stock, what do you do with your MTO Sales orders.  You normally decide upon your cutover strategy, then practice it several times in your Quality system, before going live in Production.

Best Regards,

DB49

[Former Member · Accepted solution]

Hi DB and thanks for your answer.

Yes, the planning in done in ECC. You are right there are some business requirements that cause us to move into a MTS logic. Because of the actual complexity of our situation I doubt I'll be able to explain all the issue we have so I may need to get in touch with some on site consultant.

PIR is going to be quite difficult because with a PIR we will not be able to produce a BOM to send to the vendor. We are not going to create planning tables for that purpose. Product is very complicate and we currently have no resources to mantains those planning tables.

Thanks

[Former Member · Accepted solution]

Leonildo,

For a purchased MTS part, you normally do not send a BOM to the vendor with the purchase order as part of the planning process.  The specifications for manufacturing are handled outside the planning system; your specifications department sends appropriate technical documents to the vendor which give him manufacturing details of the material that you wish to purchase from him. These documents may accompany the purchase order, or they may be sent in anticipation of the purchase order, and the vendor is instructed to keep them on file.

You did not mention whether you also intend to supply component materials to the vendor, nor whether you wish to plan these components on your local system.  For this, you normally use a subcontracting scenario.

http://help.sap.com/erp2005_ehp_04/helpdata/EN/4d/2b900743ad11d189410000e829fbbd/frameset.htm

Best Regards,

DB49