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planning strategy

Former Member
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Dear Expert

I have gone through many threads regarding strategic group still there is slight confusion .

so i would like to know with live example

AS in bottle manufacture company

1) firstly they produce big sheets of plastic which is called sheet   then they cut into pieces of big sheet which is nothing but plastic roll.with these plastic roll they will make  bottle in required shape .so final finished product is bottle and plastic roll is also semi finished and finished product

so for above scenerio the planning is defined in these way for  sheet it is 10 make to stock and for plastic roll and bottle its 20 planning with final assembly

According to planning strategy sheet will be manufactured in stock it is not dependent on customer requirement

my question  starts here

1)Does my plastic roll and  bottle  are made in advance or they will be manufactured on customer requirement ??

2) how the planning with final  assembly works in these scenerio

3)For sheet how would  i come to know these much stock i need to produce I am using external planner APO??

4)Without  using demand planning is there any way to find my forecast of product

These could be intresting discussion

Thanks in advance

Regards

virender

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Answers (1)

Answers (1)

Former Member
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Virender,


1)Does my plastic roll and  bottle  are made in advance or they will be manufactured on customer requirement ??

Since you have selected strategy 20, you would typically create a forecast; and build in advance, according to the forecast.  If you use this strategy, but choose not to actually enter a forecast, then you will build to sales demand and dependent demand only.


2) how the planning with final  assembly works in these scenario

Quoted From SCM F1 Help:

"Choose this strategy if you can accurately forecast production

quantities for the final product. With this make-to-stock strategy,

production quantities take into account actual sales orders as well

as forecasted demand: incoming sales orders consume the forecast,

and production quantities result from the net demand. The advantage

of this strategy is that you can react quickly to customer demand."


3)For sheet how would  i come to know these much stock i need to produce I am using external planner APO??

YOU have to determine this.  If you choose not to forecast (it is usually quite complex to forecast on multiple levels of the BOM and I wouldn't recommend this) then you would commonly build to dependent demand.


4)Without  using demand planning is there any way to find my forecast of product

You could manually upload a forecast developed externally.

For more info about requirements strategies, see SAP online help

Forecast Consumption and Requirements Strategies - SAP Library

Best Regards,

DB49

Former Member
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Dear DB49

Thanks for your reply still i have small doubt in mind

1)Does my plastic roll and  bottle  are made in advance or they will be manufactured on customer requirement ??

Since you have selected strategy 20, you would typically create a forecast; and build in advance, according to the forecast.  If you use this strategy, but choose not to actually enter a forecast, then you will build to sales demand and dependent demand only.

A) Where we need to choose whether enter forecast OR not????

3)For sheet how would  i come to know these much stock i need to produce I am using external planner APO??

YOU have to determine this.  If you choose not to forecast (it is usually quite complex to forecast on multiple levels of the BOM and I wouldn't recommend this) then you would commonly build to dependent demand.


B)If we choose not to forecast thus it effect the planned orders which are going to generate according to bom or not ???

Once again thanks DB some confusion has been gone

Best Regards

Virender


Former Member
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Virender,

Your questions are not really SAP questions, they are basic planning questions.  I will preface my remarks by saying that this forum is not very suitable for teaching basics of planning with SAP.


A) Where we need to choose whether enter forecast OR not????

That is a philosophical question.  Some say that choices are made in the head, some people say that choices are made in the heart.  I am a somewhat practical and technical person, so I choose to believe that you make choices in the brain.

You may also wonder, once you have made your choice (forecast/not forecast), 'where do I enter the forecast'.  There are many answers.  You can create forecast-type elements  manually in /SAPAPO/RRP3.  You can choose to use demand planning, and release the forecasts to livecache.  There are other methods.  Or, you can choose not to forecast at all, in which you just do nothing.


B)If we choose not to forecast thus it effect the planned orders which are going to generate according to bom or not ???

Choosing not to forecast means that your planning engine won't be able to create planned orders that are based on forecast.  You can still configure your planning engine to create planned orders based on other demands, such as sales orders or dependent demand or safety stock or any other type of demand element.

I am going to discontinue responding to this discussion unless you have any specific questions about SAP software.  If you are interested in pursuing your basic knowledge of planning, you might want to consider the following

SCM200 - Business Processes in Planning (SAP SCM) | SAP Training and Certification Shop

I took a similar course when I first began planning in SCM and I feel I got quite a bit of benefit from it.  The above link is for the US, but SAP and their partners offer similar products all over the world, check locally.

Best Regards & Good Luck!

DB49

Former Member
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Dear DB

As i am new to SCM system . I am trying to learn things by mapping real scenerio .Thanks for your advice for going SCM200 it is very good book .Basic knowledge is  also very important to map scenerios .

Finally I can say Thanks for your replys .

thanks & Regrads

Virender