Configuration of the SAP MRP Strategy Parameter

10, anonymous MTS prod./ Net planning NO Prodcution of planned amount, disregarding the stock level YES Production smoothing important NO 11, anonymous MTS prod./Gross planning YES Planning on successor level YES Successor planned with anonymous production + is better to forecast Planning on assembly level NO Planning on Successor level YES Successor planned with anonymous production + is better to forecast Planning on component level NO 30, Lot production 40, Preplanning with final assembly 70, Preplanning on assembly level consumptionbased, Kanban

Common final product

Assembly / phantom assembly

Component

Small amount for 'Sale-from-stock'

21, Project accounting

no pre-planning

NO

M-T-S
Part of project STO (Service-To-Order): • Service ETO (Engineer-To-Order: • Project or part of project (project accounting) MTS (Make-To-Stock): • Anonymous planning (procurement and production independent from customer orders) • AND/OR: Lead time > accepted lead time ATO (Assemble-To-Order): • Numerous final products are produced from common pre-planning (common assemblies and components). • Use, when 'statistic ss', 'range of coverage' or 'combination' not applicable. MTO: • Order dependent production and procurement

51, Pre-planning without final assembly (Project accounting)

no planning material

NO

Pre-planning Total LT final product > acc. LT

S-T-O

Service

84, Service order

Planning material • Several final products with common parts

Pre-planning

YES

E-T-O
Project

Final product or assembly

82, Assembly with production order

61, Pre-planning with plan. material (Project accounting)

pre-planning with planning material

YES

85, Assembly with network map (Project)

A-T-O

Variant

86, Configuration & assembly order

Serial product

81, Assembly with series production

M-T-O
Customized production Configurable material Common final product Assembly / phantom assembly Component

High number of variants (>x)? YES Material variant NO Characteristics pre-planning Configurable material YES

BOM successor better to forecast? NO Planning on assembly level YES

BOM successor better to forecast? NO Planning on component level

Planning on successor level

Planning on successor level

Pre-planning Total LT final prod > acc. LT NO No preplanning YES Preplanning

Pre-planning Total LT final prod > acc. LT NO no preplanning YES preplanning

no planning

Pre-planning Total LT final prod > acc LT YES Preplanning NO No preplanning

Planning material • Several final products with common parts NO No planning material YES Preplanning with planning material

Planning material • Several final products with common parts NO No planning material YES Preplanning with planning material NO

Primary demand known/determinable?

Planning material • Several final products with common parts YES A -, B-item? NO No planning material YES 89, Assembly with characteristics preplanning 52, Preplanning without final assembly or customized prod.

Planning as 'Customized production' YES Preplanwith planning mat.

NO 56,Characteristics preplanning with secondary demand

20, KEF (MTO production)

50, Preplanning without final assembly

60, Preplanning with planning material

26, MTO production for material variant

55, Preplanning material variant without final assembly

65, Preplanning material variant with planning material

25, MTO production for configurable materials

63, Preplanning with planning material without customized prod.

74, Preplanning at assembly level without final product assembly

59, Preplanning at Phantom assembly level

Preplanning on component level

Taken from 'Automatic Parameter Configuration for Inventory Management in SAP ERP/APO' by David Bucher and Joern Meissner, available at: http://www.meiss.com