In the BOM explosion, the system tries to find a storage location in the BOM item (component). If no issue storage location has been defined, the system reads the MRP group of the assembly or of the finished product and thus determines the strategy it is to use for storage location (or supply area) determination. If you have not defined an MRP group with a strategy for storage location/supply area determination, the system finally checks to see whether an issue location has been maintained in the material master record.
The same procedure is used to determine the supply area.
Strategies for storage location/supply area determination
The following strategies for withdrawing components are available for determining the storage location/supply area:
You use this procedure if you always withdraw one particular component from the same storage location. That is, every component is used at a specific storage location in the plant.
If neither of these entries has been maintained, you can enter the receiving storage location (goods receipt storage location) in the backflush transaction in Repetitive Manufacturing which is then used as the withdrawal storage location for the components.
You should use indicator 2 when all components lie together in one storage location close to the production line where they are required.
You define the strategy in Customizing for Repetitive Manufacturing or for MRP under Define stor.loc./supply area determination for BOM explosion. You assign the strategy you want to use via the MRP group.