The Planning off indicator is relevant to multi-level production with assemblies that are not produced in advance.

If the production time is long in relation to the usual delivery time, the replenishment lead time must be kept short. For this reason, the components and assemblies of the final product are produced in advance, but final assembly does not take place until a sales order is received (for example, in the case of cost-intensive materials or operations).

The replenishment lead time for some components, such as purchased parts, can be very short. You do not need to plan these components.

Demand management supports the following sales-order-based planning and production strategies, which are oriented toward make-to-order production in demand management.

• Planning without final assembly
• Planning with planning material

You can define an explosion type that generates dependent requirements for materials with the Planning off special procurement key.

For these components with a short replenishment lead time, you define an explosion type that does not generate dependent requirements and therefore is not planned.

• You enter material component M-2 as item 0020 of the BOM.
• In BOM item 0020 (material component M-2), the value B is set in the Explosion type field.