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Rajen Madan
December 7, 2013 7 minute read

Make-to-Stock Strategies: Strategy 10

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3 Likes 13,647 Views 9 Comments

Introduction:
Strategy ’10’ is one of the frequently used and frequently discussed MTS strategies. In this document we try to
explore this strategy with the relevant con guration setttings.

Strategy ‘10’ is particularly useful for pure make-to-stock scenarios and the sales requirements have no e ect
in the production. The production is based on production plans transferred via demand program/ manually
entered PIR’s. Strategy ‘10’ is also referred as ‘Net Requirements Planning’ and few important features of this
strategy are:

Sales Order requirements do not a ect the production.

No concept of PIR consumption through customer requirements, since customer requirement is not
relevant for pure make-to-stock production.
PIR reduction happens with PGI’s for Sales Order delivery.
It is often used in make-to-stock REM.

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Important Master Data:

In this example we will consider a simple BOM structure, one FERT containing one ROH as the BOM
component. Strategy 10 is used for nished products exclusively, thus the important parameters relevant to
this strategy is set up for the FERT item as shown.

Item category group ‘NORM’ in the Sales Organization view:

Strategy Group ‘10’ and a suitable availability check group without RLT (in standard, availability check group
‘02’):

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Relevant con guration settings:

Strategy group ‘10’ contains only main strategy ‘10’ in the standard system, the same can be veri ed/
maintained in OPPT transaction (alternatively in SM30 transaction, view V_T461P) and this con guration is
stored in T461P database table. More about the requirement type, requirement class and their connection to
the planning strategy is discussed in this document when required.

Availability check group without RLT can be veri ed in OVZ9 transaction. The checking rule for make-to-stock
strategies is ‘A’, and for make-to-order it is ‘AE’. In OVZ9, we check for the ‘check without RLT’ indicator for
checking rule ‘A’ and checking group ‘02’ (can be checked/ maintained at table level in SE16N transaction
T441V table; alternatively in SM30 transaction V_441V view – eld name is T441V – OWBZP).

We will discuss the relevance of Consumption mode, Backward Consumption period and Forward Consumption
period a little later when we discuss the consumption logic and strategies. According to the requirements of the
planning perspective, these elds need to be maintained.

In PP point of view, these are the relevant master data that we need to provide.

Standard Scenario Flow:

Demand Management:

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The PIR’s are created in this step, which can be manually inserted or derived from Sales and Operations
planning. In this example we create the PIR’s manually through MD61 transaction.

In the initial screen of MD61, the user can change the format (Monthly, Daily etc.) in the Planning period eld
(RM60X-ENTLU). In this example, we switch to the daily view and provide requirement quantities on three
di erent dates as shown (note the ‘Active’ indicator in MD61).

When working with multiple BOMs and production version wise BOM selection, use the menu function Settings
-> Production Version in the schedule line tab in MD61/ MD62 to enable the production version column, so that
you can de ne PIR’s according to the production versions.

The system nds requirement type as ‘LSF’ derived from the con guration of the strategy 10. It is de ned in
OPPS transaction (for a reference of assignment of Requirement Types to the planning strategies, take a dump
from T461S table). Check the entry for ‘requirement types for independent requirements’ in OPPS
con guration for strategy ‘10’. Since stock/requirements list or MD04 is a dynamic report, we should be able to
see the PIR’s entered (here in MD61) in MD04.

Procurement before Sales:

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In this step, we need to procure (produce, ‘procurement’ is a generic and broad term) the FG so that we can sell
the same later against the customer orders.

We run MRP, get the procurement proposals from MRP (in this example planned orders), and convert them to
production orders (in case of REM, the production is based on planned orders and the planned orders are non-
convertible), and produce against the production orders and do the PGI against SO delivery.

After running MRP, system generates planned orders to cater the requirements; lot size plays an important
factor for the planned receipt quantities.

In this example, I have converted the rst planned order (you can perform partial conversion) fully.

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Now we post con rmation for the production order (for simplicity, we have activated auto GR through control
key PP03 in routing of the FERT and auto GI through back ush indicator of the ROH material master back ush
indicator in MRP2 view), and get the stock of the FERT.

Sales Order:
We now create a sales order of 30 pieces in VA01 transaction.

In the procurement tab, we nd the Requirement Type as ‘KSL’ and Schedule line category as ‘CP’ in standard
system. The system nds the item category as ‘TAN’ in standard system.

These are derived from the settings for planning strategy OPPS, and from the con gurations in SD. As
discussed earlier, the requirement type for customer requirements is de ned as KSL for strategy ‘10’ in OPPS
(table T461S).

The schedule line category and the item category are derived as discussed here. In SPRO -> Sales and
Distribution -> Sales -> Sales Documents -> Sales Document Item -> Assign Item Categories (SM30 transaction
view V_T184), we de ne that based on the Sales Document type and item category group the value for the item
category. The SD document type that I chose in this example is ‘ZDSE’, and the item category group in Sales
Organization view of the material master we have selected ‘NORM’.

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In SPRO -> Sales and Distribution -> Sales -> Sales Documents ->Schedule Lines -> Assign Schedule Line
Categories (SM30 transaction view V_TVEPZ), it is de ned that the proposed schedule line category for item
category TAN and MRP Type ‘PD’ combination will be ‘CP’:

We save the sales order and check the stock/requirements list. The sales order is displayed, but it does not
a ect the available quantity.

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Technically speaking, this depends on the value of VBBE – NODIS (No MRP) eld value for the sales order, line
item and schedule line combination. For requirement type ‘KSL’, in standard it is ‘1’.

This is derived from the SD con guration as discussed in the following section. In OVZH con guration, we
maintain the requirement type to requirement class mapping; for KSL it is 030. In OVZG con guration for
requirement class 030, the No MRP eld is maintained as ‘1’. If you want to switch o the display of sales order
in MD04, you can maintain this value as ‘2’. Please note, do not maintain this as ‘blank’ for requirement class
030, the requirement transfer can generate serious consequences.

Also, it can be noted that the PIR quantities have not been consumed. For strategy ‘10’, no concept of PIR
consumption is there since the SO’s are not relevant to change the planned quantities.

Goods Issue for Delivery and PIR Reduction:

We create a delivery in VL01N and post the Goods Issue for Delivery on 08.12.2013. For strategy ’10’, PIR’s are
reduced by the 601 movement against the delivery.

We face an issue in this example, the PIR is not reduced:

The reason the PIR is not reduced is that the PIR lays in future 11.12.2013 than the PGI for delivery 08.12.2013
and we do not have any forward consumption period maintained in material master. As per OSS note 772857

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Question # 3, “the reduction occurs in the time scale up to the current date and the oldest planned independent
requirements are reduced rst. By maintaining the consumption period forwards, planned independent
requirements are used for the reduction from the current date up to the number of days in the future entered
there. The used consumption mode is not e ective.”  It is recommended to go through OSS note 38687.

So we reverse the Goods Issue in VL09, change the consumption mode to 2 or 3 with a forward consumption
period of say 15 days, and post the Goods issue again and check.

The rst PIR has been reduced now.

Considering OSS note 38687, the oldest PIR’s are reduced rst up to the current date, then system checks
whether forward consumption is allowed for a certain period and can reduce the same. The consumption mode,
backward consumption period and forward consumption period can also be maintained at an MRP group level
in OMD1 or OPPR con guration, but the values entered in the Material Master MRP3 view has the highest
priority. We should also consider BAdI MD_PIR_FLEX_CONS for exible consumption/ reduction according to
the MRP elements.

After reduction in the PIR’s, the old PIR quantities can be checked in MD63 Schedule line tab.

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References:
SAP Help – Demand Management: Net Requirements Planning (10) – Demand Management (PP-MP-DEM) –
SAP Library

OSS notes:  772857, 38687

Thank you for reading. Kindly notify if any modi cations/ updates necessary.

Best Regards,

Alert Moderator
Rajen

Assigned tags

MAN Production Planning (PP) | availability check | make to stock | md04 | md61 |

View more...

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9 Comments

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Anupam Sharma

December 7, 2013 at 5:38 pm

Good Work Rajen,

Keep Sharing.

Thanks,

Anupam Sharma

Like (0)

Rajen Madan | Post author

December 9, 2013 at 3:53 pm

Thanks Anupam!

I was actually preparing few documents for my own reference on the strategy groups and thought of sharing
one of them with as much details as possible. Please notify if any additions/ changes necessary.

It’s a privilege to have advice/feedback from experts like you. 🙂

Best Regards,

Rajen
https://blogs.sap.com/2013/12/07/make-to-stock-strategies-strategy-10/ 11/14
3/20/2019 Make-to-Stock Strategies: Strategy 10 | SAP Blogs

Like (0)

Former Member

December 14, 2013 at 9:51 am

HELLO RAJEN

I would like to know the di erence between the strategy 10 and 11 and where they are used in practical purpose
what is mixed mrp indicator purpose in strategy 11.

Thanks and Regards.

S.praveen kumar

Like (0)

Kalyana Chakravarthy

December 20, 2013 at 7:35 am

Hi Rajen,

  Excellent document. Thanks for sharing. Looking forward for other strategies like 11, 20, 40 & 70.

Regards

Kalyan

Like (0)

Former Member

January 30, 2014 at 3:28 am

Excellant Work Rajen…..Keep sharing on other strategies………

Like (0)

Former Member
https://blogs.sap.com/2013/12/07/make-to-stock-strategies-strategy-10/ 12/14
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October 8, 2014 at 8:20 am

Hello Rajen,

I have one doubt.

Suppose we are using Strategy ’10’,we manually created the PIR for 100 and 200 pieces on date 08-10-2014
and 10-10-2014 respectively.Also,we have got a sales order of 50 quantities on 14-08-2014.Now,Suppose we
have maintained consumption mode ‘only backward’ with just planning days as 10 days only.Suppose after
running the MRP,we have converted the planned order to production order also posted the goods issue,so the
PIR is reduced to 50 now.

And now,if we get another sales order on 22-08-2014,So,what will happen to the remaining PIR of 50
units,means will it get consumed or be just remain like that??

Thanks in advance.

Regards,

Anuj

Like (0)

Santosh Sharma

March 18, 2015 at 12:06 pm

Very good work..

Like (0)

Former Member

November 11, 2015 at 7:22 am

Its very useful doc…

Thanks

Like (0)

Former Member

https://blogs.sap.com/2013/12/07/make-to-stock-strategies-strategy-10/ 13/14
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December 8, 2016 at 8:18 am
Good work

thanks for docs!!!

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