Planning with Final Assembly (40) 

Purpose

This strategy is probably the most widely used make-to-stock strategy. It makes sense to use this planning strategy if you can forecast production quantities for the final product.

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 customers’ requirements. The smoothing of the master plan is less important.

Prerequisites

You must maintain the following master data for the finished product in the material master:

To control consumption, you maintain a consumption mode as well as a consumption period. For more information, see Consumption Strategies and Logic.

Process Flow

For a detailed example of the entire process, see Sample Scenario: Strategy 40.

  1. Planned independent requirements are entered at finished product level and trigger the procurement and production of the necessary assemblies and components before receipt of the sales orders.

    2. It is possible to use information from the sales forecast, the Sales Information System, or other planning tools to plan production quantities.

  2. As soon as the sales order is received, it consumes the planned independent requirements. You can then compare the planned independent requirements situation with the actual customer requirements situation.
  3. An accurate availability check is performed according to ATP (available to promise) logic during sales order processing. The system checks whether sufficient planned independent requirements have been planned to cover the sales order.
  4. Requirements from the sales orders are passed on to production and can lead to changes made to procurement if the requirements from the sales orders exceed the planned independent requirement quantities. If there is insufficient coverage of components (the sales order quantities exceed the planned independent requirement quantities), the sales orders cannot be confirmed. The system therefore automatically adjusts the master plan. For more information see Coping with Insufficient Coverage of Components. Planned independent requirement quantities that are left unconsumed increase the warehouse stock of the finished product.

Other Areas

Availability Check

Unlike other planning strategies, strategy 40 does not require the material master MRP II Availability check to contain a specific value. This field has no major impact on the strategy 40 planning process. You can use the S/D checking rule either with or without replenishment lead times. From the sales order choose Edit ® Item availability ® Goto ® Scope of check. See Availability Check.

Statistics in Demand Management

For Planning Strategy 40, the system displays only order quantities that have consumed independent requirements. Quantities that are in excess of this amount are not displayed. For example, suppose the following situation:

Confirm the creation of the sales orders, and the consumption of the planned independent requirements in the Stock Requirements List.

Choose Logistics ® Production ® Master Planning ® Demand Management ® Evaluations ® Display total requirements. The Total Requirements List shows only those sales orders that have reduced the independent requirements. Orders are allocated to independent requirements on a first come, first served basis. When independent requirements are fully consumed by current orders, they cannot be further reduced by new orders. New orders are not displayed on the Total Requirements List. The system performs this process dynamically, based on a calculation. The allocation does not display on the database.

As a result, the statistics in Demand Management may not display all sales figures over a planning period. In the example, only the 50 pieces of the first sales order display in the Total Requirements List, even though more were sold. Other functions, such as LIS or SIS, can be used to display those extra orders.