MRP STRATEGY GROUP (10)

http://scn.sap.com/docs/DOC-50032
: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 configuration setttings
Strategy 10 is particularly useful for pure make-to-stock scenarios and
the sales requirements have no effect in the production. The production is
based on production plans transferred via demand program/ manually
entered PIRs. Strategy 10 is also referred as Net Requirements Planning
:and few important features of this strategy are
.Sales Order requirements do not affect 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 PGIs for Sales Order delivery
.It is often used in make-to-stock REM

: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
finished 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)

:Relevant configuration settings

Strategy group 10 contains only main strategy 10 in the standard
system, the same can be verified/ maintained in OPPT transaction
(alternatively in SM30 transaction, view V_T461P) and this configuration 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 verified in OVZ9 transaction.
The checking rule for make-to-stock strategies is A, and for make-toorder 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 field 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 fields 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
The PIRs are created in this step, which can be manually inserted or
derived from Sales and Operations planning. In this example we create the
.PIRs manually through MD61 transaction
In the initial screen of MD61, the user can change the format (Monthly,
Daily etc.) in the Planning period field (RM60X-ENTLU). In this example, we
switch to the daily view and provide requirement quantities on three
.different 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 define PIRs according to the production versions
The system finds requirement type as LSF derived from the configuration
of the strategy 10. It is defined 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 configuration for strategy 10. Since
stock/requirements list or MD04 is a dynamic report, we should be able to
.see the PIRs entered (here in MD61) in MD04

:Procurement before Sales

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 nonconvertible), 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 first planned order (you can perform
.partial conversion) fully

Now we post confirmation for the production order (for simplicity, we have
activated auto GR through control key PP03 in routing of the FERT and
auto GI through backflush indicator of the ROH material master backflush
.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 find the Requirement Type as KSL and
Schedule line category as CP in standard system. The system finds the
.item category as TAN in standard system
These are derived from the settings for planning strategy OPPS, and from
the configurations in SD. As discussed earlier, the requirement type for
customer requirements is defined 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 define 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

In SPRO -> Sales and Distribution -> Sales -> Sales Documents
->Schedule Lines -> Assign Schedule Line Categories (SM30 transaction
view V_TVEPZ), it is defined 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 affect the available quantity

Technically speaking, this depends on the value of VBBE NODIS (No MRP)
field 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 configuration as discussed in the following

section. In OVZH configuration, we maintain the requirement type to
requirement class mapping; for KSL it is 030. In OVZG configuration for

requirement class 030, the No MRP field is maintained as 1. If you want

to switch off 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 SOs 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 Question # 3, the reduction occurs in the time scale up to the
current date and the oldest planned independent requirements are
reduced first. 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 effective. 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 first PIR has been reduced now

Considering OSS note 38687, the oldest PIRs are reduced first 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 configuration, but
the values entered in the Material Master MRP3 view has the highest
priority. We should also consider BAdI MD_PIR_FLEX_CONS for flexible
.consumption/ reduction according to the MRP elements
After reduction in the PIRs, the old PIR quantities can be checked in MD63
.Schedule line tab

: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 modifications/ updates

.necessary

,Best Regards
Rajen
Views Tagsnone (add) Tasks: planning Tags: mrp, availability_check, 10596
md04, production, pir_reduction, pir_consumption, pir, mts, md61,
requirement_class, strategy_10, net_requirements_planning,
make_to_stock, requirement_types
Average User Rating
4.6

(ratings 5)
inShare0
Tweet
Comments
Comments 8

Anupam Sharma Dec 7, 2013 6:38 PM

,Good Work Rajen

.Keep Sharing

,Thanks
Anupam Sharma
Like (0)

Rajen Madan Dec 9, 2013 4:53 PM (in response to Anupam Sharma)

!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
Like (3)

praveen kumar Dec 14, 2013 10:51 AM

HELLO RAJEN

I would like to know the difference 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 Dec 20, 2013 8:35 AM

,Hi Rajen

Excellent document. Thanks for sharing. Looking forward for other

.strategies like 11, 20, 40 & 70

Regards
Kalyan
Like (0)

Selva Kumar Jan 30, 2014 4:28 AM

.........Excellant Work Rajen.....Keep sharing on other strategies
Like (0)

Anuj Kaloria Oct 8, 2014 10:20 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 Mar 18, 2015 1:06 PM

..Very good work
Like (0)

Pulla Rao T Nov 12, 2015 6:51 AM

...Its very useful doc

Thanks
Like (0)
Top of Form
Name

Email Address

Website Address

Add Comment

Bottom of Form
Top of Form
Name (Required)

Email Address (Required, will not be published)

Website Address

<%= commentBody %>

Save

Bottom of Form
Top of Form

[placeholder]

document.delete.DOC-50032

Bottom of Form
Delete Document
?Are you sure you want to delete this document
Cancel

Delete

Actions
.Login to follow, like, comment, share and bookmark content
Login Register

Incoming Links
Re: PIR LSF Reduction
!...Re: Planned Order not Generated
Re: MTO- Production Strategy-10 Setting to Reduce PIR , as soon as Goods
Issue Happens
Useful documents on SCN
Re: Deduct Sales from PIR's - Mid Month MRP
Re: new user of PP module

Follow SCN
Site Index
Contact Us
SAP Help Portal
Privacy
Terms of Use
Legal Disclosure
Copyright
Jive Software Version: 5.0.6.2 , revision:
201308121150.54f5b14.release_5_0_6_2