Kit to Stock

 
You can use the kit-to-stock function in distribution requirements planning
(DRP) to plan the procurement and manufacture of kits. A kit is a product that
comprises several different products. You create a kit in the location product
master data of SAP Advanced Planning and Optimization (SAP APO) as a
location product that you select as a kit, and define a BOM for this kit in SAP
ERP. In this BOM, you specify the products that comprise the kit.
You can decide whether you want to create the kit internally, that is, at one of
your BOD locations, or externally, that is, through a subcontractor. As for
every other location product, DRP checks whether demand exists for the kit. If
this is the case, DRP creates either a manufacturing order for internal kitting or
a subcontract order for external kitting depending on your decision. You can
also decide whether to allow external procurement of a kit, for example, in
periods in which kitting is not possible.
 Note
You cannot use the kit-to-stock function for the following location products:
 Location products that are supplied by a separate contract packager.
If you have selected the kit-to-stock function for these location products, the
system uses the standard DRP logic without kitting.
 Location products for which you use product group procurement.
 Location products that are part of a virtual location for consolidated
ordering.

Integration
 For external kitting, you have to use a scenario for subcontracting
without a source location in order to ensure that subcontracting components
are planned effectively in your own plant and not by the supplier, as is the
case with subcontracting with a source location. For more information about
this kind of scenario, see SAP Library for SAP Supply Chain
Management under   SAP Advanced Planning and Optimization (SAP
APO)   Production Planning and Detailed Scheduling (PP/DS)   External
Procurement   Subcontracting   Subcontracting Without Source Location in
PP/DS  .
 Production data structures must be present in PP/DS. In order for this
to be the case, you created bills of material and routings in SAP ERP and
have assigned them a production version. You transferred the production
version together with the assigned bills of material and routings to SAP
SCM via the Core Interface (CIF).

Prerequisites
 For external kitting, you created external procurement relationships in
SAP ERP for subcontracting. To do this, you selected   Logistics   Materials
Management   Purchasing   Outline Agreement   Contract   Create   from
the SAP Easy Access screen in SAP ERP and you created a contract of the
type Subcontracting (S).
 You have created kits in the location product master data as location
products and made the settings on the SPP DRP tab page in the Kit to
Stock/Repair or Buy area.
 If there are periods when kit to stock is not possible for specific
location products, you have defined shutdown profiles for kit to stock in the
application-specific master data for service parts planning (SPP) and
assigned them to the relevant location products in the location product
master data.
 In Customizing, you have defined a profile for rounding lot sizes.
For more information, see the Implementation Guide (IMG) under   SCM
Basis   Master Data   Product   Maintain Rounding Profiles  .
 You have defined the settings you require for rounding lot sizes in the
location product master data, on the Lot Sizes tab page. For more
information about these settings, see Rounding in Distribution
Requirements Planning (DRP) in the section Repair or Buy and Kit to Stock.

Features

Internal or External Kitting

If you choose a location product for internal kitting, DRP generates planned
orders for this location product. DRP transfers these planned orders to SAP
 ERP, where manufacturing orders are created from these planned orders and
returned to DRP.
If you choose a location product for external kitting, DRP creates
subcontracting purchase requisitions for this location product. DRP transfers
these subcontracting purchase requisitions to SAP ERP, where subcontract
orders are created from these subcontracting purchase requisitions and
returned to DRP.
You can specify whether you want to use internal or external kitting in the
location product master data on the SPP DRP tab page under Kit to
Stock/Repair or Buy. You have the following options:
 Internal Only
In this case, DRP only allows internal kitting for a location product and only
generates planned orders for this location product. On the External
Procurement – Delivery Schedule Maintenance screen, you cannot create
any subcontracting purchase requisitions for this location product manually.
To access this screen, on the SAP Easy Access screen, choose   
Advanced Planning and Optimization   Service Parts Planning (SPP)   
Planning   Distribution Requirements Planning (DRP)   Scheduling
Agreement Releases  .
 Internal Preferred (Both Allowed)
In this case, the system favors internal kitting for the location product but
does allow external kitting. In other words, DRP generates only planned
orders for this location product but you can also create subcontracting
purchase requisitions manually for the location product on the External
Procurement – Delivery Schedule Maintenance screen.
 External Preferred (Both Allowed)
In this case, DRP favors external kitting for the location product but does
allow internal kitting. In other words, DRP generates subcontracting
purchase requisitions for this location product if you have assigned one or
more subcontractors to it. Otherwise, DRP generates planned orders. On
the External Procurement – Delivery Schedule Maintenance screen, you
can also create subcontracting purchase requisitions and planned orders for
this location product manually.
 External Only
In this case, the system allows only external kitting for the location product.
DRP checks whether the location product has been assigned one or more
 subcontractors. If subcontractors have been assigned, DRP selects the
subcontractor with the highest priority and generates a subcontracting
purchase requisition for this subcontractor. If none have been assigned,
DRP generates the exception No Source of Supply for External
Refurbishment/KtS. On the External Procurement – Delivery Schedule
Maintenance screen, you cannot create any planned orders for this location
product manually.

Dependent Demands for Kits

If DRP determines a net demand for a kit, it reads the BOM for this kit to
determine the demand for dependent demands. The system triggers a new
DRP run for these dependent demands, that is, for products that you have
specified in the BOM for this kit. In this DRP run, the system checks whether
sufficient stock is available for the required dependent demands and, if
necessary, plans procurement for these dependent demands. The system also
triggers a DRP run for dependent demands if you change manufacturing
orders or subcontract orders in SAP ERP.

Kit to Stock or Buy

If you have selected the Kit to Stock or Buy option for a location product in the
location product master data on the SPP DRP tab page, the system chooses
product procurement rather than kitting in the following cases:
 The demand lies within the freeze horizon for the product kitting.
 The kitting order overlaps with a kit-to-stock shutdown (see Periods in
Which Kitting Is Not Possible).

Planning Horizon for Kit to Stock

 You specify the planning horizon for internal kitting in the location
product master data on the SPP DRP tab page under Kit to Stock/Repair or
Buy.
 You specify the planning horizon for external kitting in the product-
specific transportation lane for the subcontractor in the Planning
Horizon field.

Delivery Times for Kits

 To determine the delivery time for kits, DRP distinguishes between kits that
you create internally and kits that you create externally, that is, through a
subcontractor. For more information about how the system calculates the
delivery lead times, see Calculation of Lead Times in DRP.

Periods in Which Kitting Is Not Possible

 DRP determines a horizon from the procurement lead time of the
planned order or subcontracting purchase requisition (depending on
whether you have selected internal or external kitting) and a location
product-specific buffer. Planned orders or subcontracting purchase
requisitions for kit to stock must not be generated within this horizon.
You can define the buffer for this horizon in the location product master data
on the SPP DRP tab page under Kit to Stock/Repair or Buy.
If a net demand for a kit occurs within this horizon, the system proceeds as
described below.
 Planned orders and subcontracting purchase requisitions for kit to
stock must not be generated during a kit-to-stock shutdown.
You can create shutdown profiles for kit-to-stock in the application-specific
master data for SPP and assign them to the required location products in
the location product master data on the SPP DRP tab page under Kit to
Stock/Repair or Buy.
If a kitting order overlaps with a kit-to-stock shutdown, the system proceeds
as described below.

Procedure If Kitting Is Not Possible

 If you have chosen to allow only kit to stock for a location product, the
system distinguishes between the two cases described above:
o If a net demand for a kit exists within the horizon in which
planned orders and subcontracting purchase requisitions must not be
generated for kit to stock, DRP does not cover this net demand, but
generates alert 7897.
o If a kitting order overlaps with a kit-to-stock shutdown, the
system attempts to bring forward this demand, that is, to cover this
demand before the shutdown. For more information, see Bringing
Forward Net Demands During Shutdown Times.
 If you have decided to either create a location product using kit to
stock or procure it, the system chooses procurement in this case.
 Rounding in Kit-to-Stock Planning
For planned orders or subcontracting purchase requisitions for kitting, the
system rounds to lot sizes in the same way as for repair-or-buy planning. For
more information about rounding to lot sizes for kit to stock and repair or buy,
see Rounding in Distribution Requirements Planning (DRP).

Restrictions
 On the External Procurement — Delivery Schedule
Maintenance screen, the audit trail function for orders and purchase orders
that DRP created in kit-to-stock planning is not available.
 The Business Intelligence system reports that contain the DRP
planning results do not display planned orders or manufacturing orders.